Forms 40, 40s, And Instructions; Schedule Wfc And Instructions - 2006 Page 22
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31• Your Social Security benefits and/or tier 1 Railroad
Any losses claimed are limited to $1,000 for each activ-
Retirement Board benefits are less than $7,500 ($15,000
ity. Depreciation is limited to $5,000.
if married filing jointly), and
The credit cannot be more than your tax liability. You can-
• Your household income plus your Social Security
not carry any amount that is more than your tax liability
and/or tier 1 Railroad Retirement Board benefits is
over to next year. You may claim this credit or the credit
less than $22,500 ($45,000 if married filing jointly).
for the elderly or the disabled, line 36, but not both.
Retirement income includes payments reported in
Child and dependent care credit. You’re allowed
35
Oregon taxable income from:
an Oregon credit only if you qualify for the fed-
• U.S. government pensions (including military).
eral child and dependent care credit. You may still be
• State or local government pensions.
able to claim the Oregon credit even if you can’t use all
• Employee pensions.
of your federal credit.
• Individual retirement plans.
Use the following worksheet:
• Deferred compensation plans including defined ben-
1.
Enter the amount from federal
1.
efit, profit sharing, and 401(k).
Form 2441, line 6; or Form 1040A,
• Employee annuity plans.
Schedule 2, line 6.
Use the following worksheet to figure your credit.
2. Enter the decimal amount from the
2.
1. Enter the retirement income of the
1.
following table.
eligible individual(s) included on
If your federal taxable
Your
Form 40, line 8.
income from Form 1040,
decimal
2. Enter any federal pension income
2.
line 43; or Form 1040A,
amount
subtracted from Oregon income on
line 27 is:
is:
Form 40, line 17. See page 26.
Over—
But not over—
3. Net Oregon taxable pension.
3.
——
$5,000
.30
Line 1 minus line 2.
5,000
10,000
.15
4. Enter $7,500 ($15,000 if married
4.
10,000
15,000
.08
filing jointly).
15,000
25,000
.06
5. Enter both spouses’ total 2006
5.
25,000
35,000
.05
Social Security and tier 1 Railroad
35,000
45,000
.04
Retirement Board benefits.
45,000
——
.00
6. Line 4 minus line 5, but not
6.
3.
Multiply the amount on line 1 by
3.
less than -0-.
the decimal on line 2. Enter here
7. Enter your household income (to
7.
and on Form 40, line 35.
determine, see below).
8. Household income base. Enter
8.
Did you pay 2005 child care expenses in 2006? If so,
$15,000 ($30,000 if married filing
you may be able to use that amount to increase your
jointly).
2006 Oregon child and dependent care credit. For more
information, please contact us.
9. Line 7 minus line 8, but not
9.
less than -0-.
Carryforward. Your total 2006 child and dependent
10. Line 6 minus line 9, but not
10.
care credit can’t be more than your 2006 Oregon tax
less than -0-.
liability. You can carry forward any excess credit over
the next five years. If the excess isn’t used within five
11. Enter the smaller of line 3 or line 10. 11.
years, it’s lost. See other credits instructions, page 31.
12. Multiply line 11 by 9 percent (.09).
12.
Credit for the elderly or the disabled. The Ore-
Enter the result here and on Form
36
gon credit is 40 percent of your federal credit.
40, line 34.
You can claim an Oregon credit only if you qualify for
What is included in household income? Household
the federal credit. Please complete federal Form 1040,
income includes all taxable and nontaxable income of
Schedule R or federal Form 1040A, Schedule 3, even if
each spouse except:
you aren’t using the federal credit.
• Social Security and tier 1 Railroad Retirement Board
Multiply the amount on federal Form 1040, Schedule
benefits.
R, line 20; or Form 1040A, Schedule 3, line 20, by .40 (40
• Your state income tax refund.
percent).
• Pension income excluded from federal AGI that is a
return of your contributions.
You can claim this credit or the retirement income
• Pensions that are rolled over into an IRA.
credit, line 34, but not both.
30
Form 40 line instructions
Have questions? Need forms? See page 40.
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