Form 40p Instructions - Oregon Department Of Revenue (Page 9 of 10) in pdf

• Political contribution credit. You may include your

Credit for income tax paid to another state.

If you paid 1998 income tax to another state on

total political contributions but not more than $100 on

income also taxed by Oregon, you may claim a credit. You

a joint return, or $50 on all others. The contributions must

have been made during 1998. They must have been

must have income that is taxed by both Oregon and the

other state during 1998. Your 1998 income tax includes all

donations of money to any of the following: a political

payments made for the 1998 tax year.

party recognized by Oregon; a qualified candidate (or

the candidate’s principal campaign committee) for fed-

You must claim the credit on your nonresident return if

eral, state, or local office to be voted for in Oregon;

the income is taxed by both Oregon and one of the fol-

or a political committee organized only to support or op-

lowing: Arizona, California, Indiana, or Virginia.

pose ballot measures to be voted on in Oregon.

If you were a resident of Oregon and paid tax to another

• Child and dependent care credit carryover from

state for a prior year on mutually taxed income, amend

prior years. If you have a child and dependent care

that year’s Oregon return to claim the credit. See page

credit carryover, see page 20 of the Form 40N instructions.

36 to order amended forms and instructions.

• Credit for the elderly or the disabled. The credit is

This credit is only for state income tax. You can’t claim

40 percent of the federal credit. You may claim this

this credit for city or county income tax, sales tax, prop-

credit or the retirement income credit, but not both.

erty tax, school tax, or building funds.

Multiply the amount from federal Schedule R, line 20,

If you are a shareholder in an Oregon S corporation that

or Form 1040A, Schedule 3, line 20, by 40 percent (.40).

paid taxes to another state, you may qualify for this credit.

Then multiply the result by the Oregon percentage on

See page 36 to order the information circular.

Form 40P, line 40.

Your credit is the lesser of the following:

Note: Oregon has some credits which apply to only a

few people. These credits are listed on page 20.

• The other state’s tax after credits.

• Your Oregon tax after all other credits.

Tax payments, penalties, and interest

• The amount figured using Formula 1.

• The amount figured using Formula 2.

Oregon income tax withheld from income.

Formula 1: Divide your adjusted gross income (AGI)

Fill in the total amount of Oregon tax withheld

taxed by both states by your modified AGI. Your modi-

from your wages and other income. That’s the amount

fied AGI is your income on Form 40P or Form 40N, line

shown on your W-2 or 1099 forms. Don’t use FICA

39b. Multiply the result by your Oregon tax after all other

(Social Security) tax withheld from your pay. Don’t use

credits. The result can’t be more than your Oregon tax

tax withheld from your wages by other states. Staple

after credits.

readable copies of your W-2 or 1099 forms to the lower

Your AGI taxed by both states

Your Oregon tax after

front of your return.

Your modified AGI

all other credits

If you don’t have a W-2 or 1099, you must provide other

Formula 2: Divide your AGI taxed by both states by

proof of any tax withheld from your income. Proof may

your total income on the other state’s return. Multiply

include a final paycheck stub or a letter from your employer.

the result by the other state’s tax after all other credits.

We can’t accept anything but W-2 forms until after Febru-

“Total income” means income before subtracting item-

ary 1, 1999.

ized deductions and exemptions.

Estimated tax payments for 1998. Fill in the

The result can’t be more than the other state’s tax after

total Oregon estimated tax payments you made

credits.

before filing your 1998 Oregon return. Include any pay-

Your AGI taxed by both states

The other state’s tax

ments made with your extension. Also, include any refund

after all other credits

Your total income on the

applied from your 1997 income tax return.

other state’s return

Caution: You can’t claim this credit and also claim the

Penalty and interest. See 40N instructions on

tax you paid to the other state as an itemized deduc-

page 21.

tion. If you claim the tax as an itemized deduction, fill

in either your tax liability to the other state or the amount

Interest on underpayment of estimated tax.

of that state’s tax claimed as an itemized deduction,

See 40N instructions on page 21.

whichever is less, on line 43.

Amount-you-owe. Attach a check or money

Attach a copy of the other state’s return and proof

order to your return on top of the W-2s. Make it

of payment to the back of your Oregon return.

payable to “Oregon Department of Revenue.” We pre-

fer you use blue ink. Do not use red ink. Do not make

Other credits. You may qualify for other credits

your check out to “IRS” or “Internal Revenue Service.”

explained below. Identify the credit in the space

Write your Social Security number and “1998 Oregon

on line 60. If you have more than one, show the type

and amount of each credit. Fill in the amount of all

Form 40P” on your check. Don’t send cash or post-

“Other credits” on line 60.

dated checks. Mail your return to:

(continued on page 35)

30/Tax payments

Form 40p Instructions - Oregon Department Of Revenue Page 9

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