Oregon Income Tax instructions and schedules

8/3/2019 Oregon Income Tax instructions and schedules

1/36

2011

The Astoria Column in Astoria, Oregon Oregon Department of Revenue150-101-043 (Rev. 12-11)

Oregon Income TaxFull-Year Resident Form 40 and instructions

Schedules OR-ASC and WFC

All full-year filers

now use Form 40See page 3.

Taxes are due

April 17, 2012

E-file to get your

refund in 710 days

See page 2.

Veterans benefitsFind out more atwww.oregon.gov/ODVA.

Healthy Kids program

Find out if you qualifyfor health coverage atwww.oregonhealthykids.gov.

www.oregon.gov/dor


2/36Need help? See page 36.2 E-filing

YourreturnandtaxowedaredueApril17,2012.Seepage25forpaymentoptions.

TheseinstructionsarenotacompletestatementoflawsandOregonDepartmentofRevenuerules.You may need more information. See page 36.

ContentsElectronic filing............................................................... 2

New information............................................................. 3General information............. .............. ............... ............. 3 Residency..................................................................... 3 WhatformdoIuse?................................................... 4 Militarypersonnel..................................................... 4 WhatifIneedmoretimetofile?.............................. 5 Penalties....................................................................... 5 2012estimatedtax...................................................... 5Instructions for Form 40................................................ 6 Nameandaddress..................................................... 6 Filingstatus................................................................. 7 Exemptions.................................................................. 7Form 40.............. .............. .............. ............... .............. ...... 9

Form 40 line instructions............ ............... .............. .... 13 Additions................................................................... 13 Subtractions................................................................14 Deductions................................................................ 17 Oregontax..................................................................18

Creditsnon-refundable...........................................18

Taxpaymentsandrefundablecredits................... 24 Penaltiesandinterest............................................... 25Form40-V,paymentvoucher.......................................19Schedule OR-ASC.......................................................... 21Payment options.............. .............. ............... .............. .. 25Charitable Checkoff donations.............. .............. ....... 26Direct deposit................................................................ 26Before you file............................................................... 27Avoid processing delays.............................................. 27Tax return mailing addresses.............. ............... ......... 27Working family child care credit.............. .............. ..... 28Schedule WFC instructions............. ............... .............. 28ScheduleWFC,Oregon Working Family Child

Care Credit for Form 40.............................................. 29Tax tables....................................................................... 33Tax rate charts............................................................... 35Taxpayer assistance.............. .............. .............. ............ 36

Electronic filingE-fileisthefastestwaytofileyourreturnandreceiveyour refund. The speed and accuracy of computersallow electronic returns tobeprocessed faster than

paper returns, greatly reducing errors and delays.E-fileusessecuretechnologytoensurethesafetyofyourpersonalinformationonceitistransmittedtotheIRSandtheDepartmentofRevenue.

Oregon participates in the IRS Federal/State E-fileprogram. This program allowsyou to electronicallyfilebothyourfederalandOregonreturnsatthesametime.Ifyouhavealreadyfiledyourfederalreturn,youmaystillelectronicallyfileyourOregonreturn.

Ifyouhaventtriede-fileyet,whynotthisyear?JoinmorethanamillionotherOregontaxpayerswhoelec-tronicallyfiletheirOregonreturns.

Youcantakeadvantageofe-fileinoneofthreeways:

1. Ask your tax preparer.

IfyourtaxpreparerisanauthorizedIRSe-filepro-vider,yourpreparercanelectronicallyfileyourfed-

eralandOregonreturns.ManyTax-AideandTaxCounselingfortheElderly(TCE)sitessetupbytheIRSareauthorizedIRSe-fileproviders.

2. Online tax preparation software.

Youcanfileyourfederalandstatereturnsfromyourhomecomputer,fromwork,orfromalibraryusingOregon-approvedonlinetaxpreparationproducts.Gotoourwebsiteatwww.oregon.gov/dor/e-filingforalistoftaxpreparationproductsthatcanassistinpreparingyourfederalandOregonreturns.

3. You may be eligible for free e-file.

Several tax preparation software providers offerfreeonlineelectronictaxfiling.Forfreeonlinetaxpreparationprograms,gotoourwebsiteatwww.oregon.gov/dor/e-filing.

Formoreinformationaboute-filing,gotoourwebsiteatwww.oregon.gov/dor.


3/36Visit our website at www.oregon.gov/dor. 3New information

Form change. Beginningintaxyear2011,allfull-yearOregonresidentswilluseOregonForm40.Thereisno longeranOregonForm40S. Thismeans that allOregonfilerswillneedtoincludeafederalformwhentheyfile.

TIPThroughoutthebooklet,youwillfindtips

forformerForm40SfilerstohelpinthetransitiontoForm40.Thesetipswillbemarkedwithanarrow.

Federal law.Oregonistiedtothefederaldefinitionoftaxableincome,withtwoexceptions:

InternalRevenueCode(IRC)section139Aforfederalsubsidiesforprescriptiondrugplans;and

IRCsection199forincomeattributabletodomesticproductionactivities,alsoknownasqualifiedpro-ductionactivityincome(QPAI).

Income under these sections is exempt from tax onthefederalreturn.Ifyouhaveeitherofthesetypesof

income,youwillhaveanadditiononyourOregontaxreturn.Seepage13.

Oregonwill automatically adopt any future federallawchangestothedefinitionoftaxableincome.

New business credits. There are additional energy credits:

Renewableenergyresourceequipmentmanufactur -ingfacility.Energyconservationproject.Transportationprojects.Renewableenergydevelopmentcontributions.

Formoreinformationonthesecredits,gototheDepart-mentofEnergyswebsiteatwww.oregon.gov/ENER-GY,orcall503-378-4040(Salem)or1-800-221-8035.

Charitable checkoffs. YoucannowdonateallorpartofyourrefundtoCascadeAIDSProject.

The charitable checkoffs listed on Form 40 havechanged.Seepage26fordetails.

New information

General informationDo I need to file?

Youneedtofileifyourgrossincomeismorethantheamountshownbelowforyourfilingstatusandage.

Amounts apply to full-year residents only.

Filing status AgeIf gross incomeis more than:

Can be claimed on

anothers return Any $950*

SingleUnder 65 $5,34565 or over $6,545

Married/registereddomestic partner(RDP) filing jointly

Both under 65 $10,700One 65 or over $11,700Both 65 or over $12,700

Married/RDPfiling separately

Under 65 $5,34565 or over $6,345

Head of householdUnder 65 $6,68065 or over $7,880

Qualifying widow(er)Under 65 $7,44065 or over $8,440

In addition, file a return if:

Youarerequiredtofileafederalreturn.Youhad$1ormoreofOregonincometaxwithheldfromyourwages.

* The larger of $950, or your earned income plus $300, up tothe standard deduction amount for your filing status.

How long will it take to get my refund?

EffectiveafterFebruary1,2012:

If you e-file your return 710businessdays

If you mail your return before April 1

With2-Dbarcode 12weeks

Without2-Dbarcode 46weeks

If you mail your return on or after April 1

With2-Dbarcode 24weeks

Without2-Dbarcode 68weeks

Note: IfyouclaimtheWorkingFamilyCredit(WFC)oryour return needs additional review,your returnwilltakelongertoprocess.

Tocheckifyourrefundhasbeenissued,gotowww.oregonrefund.comafterthetimeframelistedabove.

What income does Oregon tax?

AnOregonresidentistaxedonallincome,includingincomefromoutsidethestate.AnonresidentofOre-gonistaxedonlyonincomefromOregonsources.

Residency

AmIaresident,anonresident,orapart-yearresident?Thefollowingwillhelpyoudecide.

You are a full-year Oregon resident, evenifyouliveoutsideOregon,ifallofthefollowingaretrue:


4/36Need help? See page 36.4 What form do I use?

Youthink ofOregonas yourpermanent home,and

Oregonisthecenterofyourfinancial,social,andfamilylife,and

Oregonistheplaceyouintendtoreturntowhenyouareaway.

You are still a full-year resident if:YoutemporarilymovedoutofOregon,orYou moved back to Oregon after a temporary

absence.

You may also be considered a full-year resident ifyou spent more than 200 days in Oregon during2011 or you are a nonresident alien, as defined byfederal law.

You are a nonresident ifyourpermanenthomewasoutsideOregonallyear.

You are a part-year resident ifyoumovedintooroutofOregonduring2011.Youarenot consideredapart-yearresidentif:YoutemporarilymovedoutofOregon,or

You moved back to Oregon after a temporaryabsence.

Special-case Oregon residents.IfyouareanOregonresidentandyoumeetallofthefollowingconditions,youareconsideredanonresidentfortaxpurposes.

YouareanOregonresidentwhomaintainedaper-manenthomeoutsideOregontheentireyear,and

YoudidnotkeepahomeinOregonduringanypartof2011,and

Youspentlessthan31daysinOregonduring2011.

Important!Arecreationalvehicle(RV)isnotconsid-eredapermanenthomeoutsideofOregon.

Oregon residents living abroad. Usually you areconsidered a nonresident if youqualify for the fed-eralearnedincomeexclusionorhousingexclusionforUnitedStatesresidentslivingabroad.

What form do I use?

Use Form 40 ifyouareafull-yearOregonresident.

Use Form 40P if any ONE of the following is true:

Youareapart-yearresident,orYouarefilingjointlyandoneofyouisafull-year

Oregon resident and the other is a part-year resi-dent, or

Youarefilingjointlyandbothofyouarepart-yearOregonresidents,or

YouqualifiedasanOregon resident livingabroadforpartoftheyear.

Use Form 40N if any ONE of the following is true:

Youareanonresident,or

Youarea special-caseOregon resident (see Resi-dencysection),or

Youarefilingjointlyandone(orboth)ofyouisanonresident,or

You meet the military personnel nonresidentrequirementsexplainedbelow,or

YouqualifiedasanOregonresident livingabroadfortheentireyear.

Forms40Pand40NareincludedinthePart-Year Resi-

dent and Nonresident booklet. Download the bookletfromourwebsiteorcontactustoorderit.

Military personnel

Residents stationed in Oregon.IfyouareanOregonresidentstationedinOregon,fileForm40.

Residents stationed outside Oregon.Ifyoumeettherequirementsonthispageforspecial-caseOregonresi-dentsorOregonresidentslivingabroad,fileForm40N

fromthePart-Year Resident and Nonresidentbooklet.File

Form40ifyoudontmeetthelistedrequirements.Nonresidents stationed in Oregon. Oregondoes nottaxyourmilitarypaywhileyouarestationedinOre-

gon.FileForm40NifyouhadotherincomefromOre-gonsources,ortoclaimarefundofOregontaxwith-heldfromyourmilitarypay.

Formoreinformation,gotoourwebsiteorcontactus.

Filing for a deceased person

Youmustfileafinalpersonalincometaxreturnfora

personwhodiedduringthecalendaryeariftheper-sonwouldhavebeenrequiredtofile.SeeDoIneedto file? onpage3. If a return isfiled,please checkthedeceased box on the return. If youhave beenappointedpersonalrepresentativeoryouhavefiledasmallestateaffidavit,signthereturnaspersonalrep -

resentativeandhavethespouse/RDPsignifajointreturn.Ifthereisnopersonalrepresentativeforajointreturn,onlythesurvivingspouse/RDPneedstosign.Formoreinformation,seeSurvivors Informationonourwebsite.

Are you filing a return and claiming a refund for

someonewhoisnowdeceasedandthereisnocourt-appointedpersonalrepresentative?Ifso,fileForm243,Claim to Refund Due a Deceased Person,withthereturn.Thisallowsustoissuetherefundcheckinyourname.Downloadtheformfromourwebsiteorcontactustoorderit.

Note: Oregonhasaninheritancetaxonestatesvaluedat$1millionormore.Thetaxispaidbytheestate,notbytheindividualsreceivingtheinheritance.Formoreinformation,checkourwebsiteorcontactus.


5/36Visit our website at www.oregon.gov/dor. 5What if I need more time to file?

When should I file my return?

Thefilingdeadlineforcalendaryear2011isApril 17,2012. Ifyoucannotpayalloranyofyourtaxbytheduedate,itsimportanttofileyourreturnanywaytoavoidalate-filingpenalty.

Returnsforothertaxperiodsareduebythe15thdayofthefourthmonthafterthecloseofyourtaxyear.

What if I need more time to file?

Ifyouneedmoretimetofile,requestanautomaticsix-monthextension.CompleteanOregonextensionform,Form40-EXT,if:

Youremaking a taxpayment toOregon and youcantfileyourOregonreturnbyApril17,2012,or

YouarefilinganextensionforOregononly.

Extensionsmustbefiledbytheduedateofthereturn,April17,2012.

IfyoureceivedafederalextensionandareexpectinganOregonrefund,donotuseForm40-EXT.Oregonwillallowthesameextension.Besuretocheckbox7bonyourOregonreturn.DonotincludeacopyofyourfederalextensionwithyourOregonreturn.Keepacopyofyourfederalextensionwithyourrecords.

If you need to complete Form 40-EXT, download itfromourwebsiteorcontactustoorderit.

An extension does not mean more time to pay!

Youmustpayalltaxyouexpecttoowewhenyoufileyourextension.Ifyoudonotpayallthetaxduewhen

yourequestanextension,youwilloweinterestonanyunpaidtaxafterApril17,2012,untilthedateofyourpayment.The2012interestrateis5percentperyear.Ifthetaxisnotpaidwithin60daysofthedateofourbill-ingnotice,theinterestrateincreasesto9percentperyear.Youmayalsoowealate-paymentpenalty.Ifyoucannotpayallofthetaxyouexpecttoowe,paywhatyoucan.Callusassoonaspossibletosetupapaymentplantoreducepenaltiesandinterest.

Were you stationed in a designated combat zone?

If youwere stationed in a designated combat zone

andreceivedadditionaltimetofileyour2011federalreturnandpayyour2011tax,Oregonallowsthesameamountoftimetofileandpay.Write Combat zonein blue or black ink at the top left corner of yourreturn.

Penalties

Youwillowea5percentlate-paymentpenaltyonany2011taxnotpaidbyApril17,2012,evenifyouhavefiledanextension.Seepage25.

Ifyoufilemorethanthreemonthsaftertheduedateor

extensionduedate,a20percentlate-filingpenaltywill

beadded;so,youwilloweatotalpenaltyof25percent

ofanytaxnotpaid.A100percentpenaltyischarged

ifyoudonotfileareturnforthreeconsecutiveyears

bytheduedateofthethirdyear,includingextensions.

2012 estimated tax

Estimatedtaxistheamountoftaxyouexpecttoowe

aftercreditsandOregontaxwithheldwhenyoufile

your2012Oregonindividualincometaxreturn.

Oregon estimated tax laws are not the same as fed-

eral estimated tax laws. Use Oregon instructions to

determine if you need to make estimated tax pay-

ments for 2012.

Do I need to make estimated payments?

Inmost cases,peoplewho expect to owe $1,000 or

more on their 2012 Oregon income tax return after

credits andwithholdingmust make estimated pay-

ments.Youmayneedtomakeestimatedpaymentsif:

Youareself-employedanddonothaveOregontax

withheldfromyourincome.

YoureceiveOregonLotterysingleticketwinnings

oflessthan$5,000.(Note:Singleticketwinningsof

$5,000ormorearesubjecttoOregonwithholding.)

Youreceiveincomesuchaspensions,interest,ordiv-

idends;Oregontaxisnotwithheld;andyouexpect

toowetaxof$1,000ormore.

Youre a wage earner and expect to owe tax of$1,000ormoreonyour2012return.Youmaywant

to increase the amount your employer withholds

fromyourOregonwages.Downloadthepublication

Oregon Income Tax Withholding fromourwebsiteor

contactustoorderit.

When do I pay?

Estimated taxdue dates for 2012 taxes areApril 17,

2012*; June15,2012; September17,2012; andJanuary

15,2013.

Ifpayingwithacheckormoneyorder,sendyourpay-mentwithForm40-ESV,Oregon Estimated Income Tax

Payment Voucher.DownloadthepublicationEstimated

Income Tax fromourwebsiteorcontactustoorderit.

Ifyouarepayingbycreditcardorelectronicpayment

fromyourcheckingorsavingsaccount,seepage25.

* Please send your 2012 estimated tax payment and Ore-

gon Form 40-ESV in a separate envelope from your 2011

Oregon income tax return. This will help us credit your

payment more efficiently.


6/36Need help? See page 36.6 Estimated tax

Interest on underpayment

of estimated tax

Youmayoweinterestforunderpayingyourestimatedtaxif:

Youowe$1,000ormoreonyourreturnaftercredits

andwithholding,orYoupaidlessthan90percentofthetaxdueoneach

estimatedtaxpaymentduedate.

SeetheinstructionsforForm40,line51,onpage25.

What if Im self-employed?

If youre self-employed and do business in Mult-nomah, Clackamas, or Washington counties, you

may need to file Form TM, TriMet Self-EmploymentTax Return. If youre self-employed anddobusinessinLane County,youmayneedtofileFormLTD,LaneTransit District Self-Employment Tax Return. Gotoourwebsitetodownloadtheforms,orcontactustoordereitherform.

What if I need to change my Oregon

return after filing?

Fileanamendedreturn.UseForm40tochange(amend)your full-year resident return. Check the amendedreturnboxintheupperleftcorneroftheform.YoumustalsocompleteandincludetheOregon AmendedSchedulewithyouramendedreturn.ForprioryeartaxbookletsortheOregon Amended Schedule,pleasevisitourwebsiteorcontactus.

Step 1: Fill out your federal form

TIPCompleteyourfederalreturnfirst.Do thiseven if you are not required to file a fed-

eral form. Youmustusethe informationfrom your

federalreturntocompleteyourOregonreturn.

Registered domestic partners (RDPs): To correctly

determine yourOregon tax liability, youmust com-

pleteafederalincometaxreturnas if youweremar-

ried filing jointly ormarried filing separately. Infor-

mationfortheasifreturncomesfromthefederal

returns eachpartner filedwith the IRS.Use all thesameIRSrulesandproceduresthatapplytomarried

couples.Important! Donotfilethisasifformwith

theIRS.Usetheinformationyoucalculatedonthe as

if federalreturntocompleteyourOregonincometax

return,unlessotherwiseindicated.

Step 2: Select the appropriate form

Todecidewhichformtouse,seepage4.

Form 40 filers.Youmustincludeacopy(frontandback)

ofyourfederalForm1040,1040A,1040EZ,1040NR,or

1040NR-EZwithyourOregonForm40.Do notincludeanyfederalschedules.Wemayaskyouforcopiesof

schedulesoradditionalinformationlater.

Step 3: Fill out the Oregon form

Use blue or black ink only. Pleaseuseblueorblack

ink for easier reading and faster processing. Equip-

mentusedtoscandocumentsandcheckscannotread

gelinkorcertaincolorsandusingthemwilldelaythe

processingofyourreturn.

Amended return

Ifyouareamendingyour2011return,checktheboxintheupperleftcornerandincludetheOregon AmendedSchedulewithyouramendedreturn.

Fiscal year filers only

Writetheendingdateofyourfiscalyearinthespaceprovided.Write Fiscal year in blue or black ink atthe top left corner of your return.

Name and address

Typeorclearlyprintyourname,SocialSecuritynum-ber,dateofbirth,completemailingaddress,andday-timetelephonenumberonyourreturn.Ifyouaremar-ried/RDPfilingseparately,donotfillinyourspouses/RDPsnameandSSNhere.Enteritonline3instead.Ifthetaxpayerdiedin2011or2012,pleasecheckthedeceasedboxnexttotheirname.

Social Security number (SSN). The request for yourSSN is authorized by Section 405, Title 42, of the UnitedStates Code. You must provide this information. It will

be used to establish your identity for tax purposes only.

Individual taxpayer identification number (ITIN). IftheIRS issuedyou an ITIN becauseyoudont haveaSocial Securitynumber, enteryour ITINwhereveryourSSNisrequested.

If youdont have an ITIN, youneed to request onefromtheIRS.Inthiscase,write Applied for wher-ever your SSN is requested, or leave blank, andfileyourreturnbyApril17,2012.Do notincludeyourITINapplication(federalFormW-7)withyourOregontax

General instructions for Form 40


7/36Visit our website at www.oregon.gov/dor. 7General information

return.ForacopyofFormW-7,gototheIRSwebsiteatwww.irs.gov,orcalltheIRStoll-freeat1-800-829-1040.WhentheIRSissuesyouanITIN,sendacopyofyourITINlettertotheOregonDepartmentofRevenue.

Date of birth. Enterthemonth,day,andyearyouwereborn.Forexample,09/22/1976.

Check the boxes

Filing status

1 5 Checktheboxnexttoyourfilingsta-tus.YoumustusethesamefilingstatusforyourOregonandfederalreturns.

Exception for registered domestic partners (RDPs).AsanRDP,youarenoteligibletousethesinglefilingsta-tus.ForOregon,youaregenerallyrequiredtouseoneof the following filing statuses: registered domesticpartnersfilingjointlyorregistereddomesticpartnerfilingseparately.

Formoreinformation,gotoourwebsiteorcontactus.

Exceptions for married/RDP persons when each per-

son has a different residency status:

Full-year resident and part-year resident. You mayfile separate Oregon returns. If you file separatereturnsforOregon,youmustusethemarried/RDPfiling separately status.The full-year residentwillfileForm40,andthepart-yearresidentwillfileForm40P.IfyouchoosetofileajointreturnforOregon,useForm40P.

Full-year resident and nonresident.Youmayfilesep-arateOregonreturns.Ifyoufileseparatereturnsfor

Oregon,youmust

usethemarried/RDPfilingsepa-ratelystatus.Thefull-yearresidentwillfileForm40,andthenonresidentwillfileForm40N.IfyouchoosetofileajointreturnforOregon,useForm40N.

Part-year resident and nonresident. You may fileseparate Oregon returns. If you file separate returnsfor Oregon, you must use the married/RDP filingseparately status. The part-year resident will fileForm 40P, and the nonresident will file Form 40N.IfyouchoosetofileajointreturnforOregon,useForm 40N.

How to file separate returns for Oregon

Ifyou file separate returns for Oregon only,reportyourownshareoffederaladjustedgrossincome(AGI)anddeductions.Also,reportyourshareofanyOregonadditionsorsubtractionsusingthisformulatodeter-mineyourpercentage:

Your share of federal AGI=

Your percentage

(not to exceed 100%)Joint federal AGI

Write MFS/RDP for Oregon only in blue or blackink at the top left corner of your return.IncludethefollowingwithbothOregonreturns:

A federal Form 1040, 1040A, 1040EZ, 1040NR, or1040NR-EZpreparedas ifyouhadfiledmarried/RDPfilingseparately,and

AcopyofthejointForm1040,1040A,1040EZ,1040NR,or 1040NR-EZ you actually filed with the IRS.

If possible, mail both spouses/RDPs Oregon returns inthe same envelope. Do not staple the returns together.

Formoreinformation,visitourwebsite.

Ifyouaremarried/RDP filing separately,fillinyourspouses/RDPs first name, last name (first four let-tersonly),andSocialSecuritynumberunderbox3aor3b.Donotfil linyourspouses/RDPsnameorSocialSecuritynumberintheheadingofthereturn.

Ifyouarefilingashead of household,fillinthenameofapersonwhoqualifiesyouforheadofhouseholdfilingstatusnexttobox4.Pleaseenteronlyonename.

Exemptions

6a 6b& Yourself and spouse/RDP. CheckYourselfandotherboxesthatapply.If someone else can claim you as a dependent (evenif they did not), do not check Yourself; insteadenter-0-inthetotalboxon6aunlessyouhaveaseveredisability.

Severely disabled. Did you have a severe disabilityattheendof2011?Ifso,youmayclaimanadditionalexemptioncredit.Thiscreditisdifferentfromthedis-abledchildcredit.Youmayqualifyforandclaimtheseverelydisabledexemptionevenifsomeoneelsecanclaimyouasadependent.Youareconsideredtohaveaseveredisabilityifanyofthefollowingapply:

Youpermanentlylosttheuseofoneorbothfeet;orYoupermanentlylosttheuseofbothhands;orYourepermanentlyblind;orYouhaveapermanentconditionthat,withoutspe-cialequipmentoroutsidehelp, limits your abilitytoearnaliving,maintainahousehold,ortransportyourself;or

Youareunabletoearnalivingduetoapermanentconditionorimpairmentofindefiniteduration.

Ifyouhave a severedisability, yourphysicianmustwritea letterdescribing it.Keeptheletterwithyourpermanentrecordsincasewerequestacopy.

Ifyou qualify, checktheseverelydisabled exemp-tionboxonline6a.IfyourspouseorRDPqualifies,checktheseverelydisabledexemptionboxonline6b.Youandyourspouse/RDPmayalsoqualifyforthelossofuseoflimbscredit.

6c All dependents. Enter the number of yourdependentsinbox6c.Writetheirfirstnamesontheline.Inmostcases,youmustclaimthesamedepen-dentsclaimedonyourfederalreturn.Ifthefirstnamesof yourdependentsdonot fit on the line,write thenamesonastatementinstead.Numberthestatement


8/36Need help? See page 36.8 General information

andincludeitwithyourreturn.WriteSTMandthestatementnumberonline6c.

6d Children with a disability.Youmaybeentitledto an additional personal exemption for yourdependent childwho hasa qualifyingdisability. Toqualify,allofthefollowingmustbetrue:

Yourchildqualifiedasyourdependentfor2011,andYourchildwaseligibleforearlyinterventionservic-esorreceivedspecialeducationasdefinedbythe

StateBoardofEducationofthestatewherethechildattendsschool,and

YourchildhasadisabilityasofDecember31,2011underthefederalIndividualswithDisabilitiesAct.Eligibledisabilitiesinclude:Autism.Deaf-blind.Hearingimpairment.Mentalretardation.Multipledisabilities.Orthopedicimpairment.Otherhealthimpairment.

Seriousemotionaldisturbance.Traumaticbraininjury.Visualimpairment.

Note: Learning disabilities orcommunication disor-dersalonedonotqualify.

Youmustget astatementofeligibilitythatconfirmsoneofthedisabilitieslistedandacoversheetfromoneofthefollowing:

ThechildsIndividualizedEducationProgram(IEP),or

The childs Individualized Family Service Plan(IFSP).

Keep the statement and cover sheet with yourper-manentrecords.Writeyourdisabledchildsnameonline6d,Disabledchildrenonly.Ifthefirstnamesofyourdisabledchildrendonotfitontheline,writethenamesonastatementinstead.Numberthestatement

andincludeitwithyourreturn.WriteSTMandthestatementnumberonline6d.Alsobesuretoincludethesamechildsnameonline6cforAlldependents.

7a Age65orolder,orblind. Checktheboxesonline7aifyouoryourspouse/RDPwereage65orolderorwereblindonDecember31,2011.Youareentitled to a larger standard deductiononForm40,line26.Ifyouoryourspouse/RDParepermanentlyblind,youmayalsoqualifyfortheseverelydisabledexemptioncredit.Seebox6aand6binstructions.

7b Extension.Ifyoufiledforanextension,checkbox7b.Formoreinformation,seepage5.7c Federal Form 8886.Checkbox7cifyoufiledfederalForm8886,Reportable Transaction Disclo-

sure Statement.

7d Dependent. If your parents or someone elsecanclaimyouasadependent(eveniftheydidnot),youcantclaimanexemptionforyourself.Checkbox7dandenter -0- in the total box on line 6a,unlessyouareseverelydisabled.

Continued on page 13


9/36

NOW GO TO THE BACK OF THE FORM

8 Federal adjusted gross income. Federal Form 1040, line 37; 1040A, line 21; 1040EZ, line 4;

1040NR, line 36; or 1040NR-EZ, line 10. See instructions, page 13 ........................................................... 8

9 Interest and dividends on state and local government bonds outside o Oregon ... 9

10 Other additions. Identify: 10x 10y $ Schedule included 10z 10

11 Total additions. Add lines 9 and 10 ................ ............... ................ ............... ................ ............... ............... . 11

12 Income ater additions. Add lines 8 and 11 .............. ................ ............... ............... ................ ............... ...... 12

13 2011 ederal tax liability ($0$5,950; see instructions or the correct amount) ..... 13

14 Social Security included on ederal Form 1040, line 20b; or Form 1040A, line 14b ... 14

15 Oregon income tax reund included in ederal income ............................................ 15

16 Interest rom U.S. government, such as Series EE, HH, and I bonds ..................... 16

17 Federal pension income. See instructions, page 15. 17a % 17b % ... 17

18 Other subtractions. Identify:18x 18y$ Schedule included 18z 18

19 Total subtractions. Add lines 13 through 18 ................ ............... ................ ............... ............... ................ ... 19

20 Income ater subtractions. Line 12 minus line 19 ........................................................................................ 20

If you are claiming itemized deductions, fill in lines 2125. If you are claiming the standard deduction, fill in line 26 only.

21 Itemized deductions rom ederal Schedule A, line 29 ............................................ 21

22 Special Oregon medical deduction (age restricted, see instructions, page 17) ...... 22

23 Total Oregon itemized deductions. Add lines 21 and 22 ......................................... 23

24 State income tax claimed as an itemized deduction.......................................... 24

25 Net Oregon itemized deductions. Line 23 minus line 24.........................................

25OR

26 Standard deduction rom page 17 ............... ................ ............... ................ ............. 26

27 Total deductions. Line 25 or line 26, whichever is larger......................................................................... 27

28 Oregon taxable income. Line 20 minus line 27. I line 27 is more than line 20, enter -0- .........................28

29 Tax. See instructions, page 18. Enter tax here ........................................................ 29

Check i tax is rom: 29a Tax tables or charts or 29b Form FIA-40 or 29c Worksheet FCG

30 Interest on certain installment sales......................................................................... 30

31 Total tax beore credits. Add lines 29 and 30 ...................................OREGON TAX BEFORE CREDITS 31

ADDITIONS

Round to the nearest dollar

DEDUCTIONS

TAX

SUBTRACTIONS

Include

proof ofwithholding(W-2s,1099s),payment,and paymentvoucher

Either line 25 or 26

Deceased

Deceased

7d Someoneelse can claim youas a dependent

7c You haveederalForm 8886

7b Youiled anextension

Fiscal year ending

First name and initial

Spouses/RDPs frst name and initial i joint return

Date o birth (mm/dd/yyyy)


Last name Social Security No. (SSN)

Spouses/RDPs last name i joint return Spouses/RDPs SSN i joint return

Telephone numberCurrent mailing address

City State ZIP code I you fled a return last year, and yourname or address is dierent, check here

( )Country

1 Single2a Married fling jointly2b Registered domestic partners (RDP) fling jointly3a Married fling separately:

Spouses name _____________________________ Spouses SSN ___________________

3b Registered domestic partner fling separately:Partners name _____________________________ Partners SSN ___________________

4 Head o household: Person who qualifes you ________________________________5 Qualiying widow(er) with dependent child

FilingStatus

Checkonlyonebox

Exemptions

6a Yoursel .......... .Regular ...... Severely disabled ....6a

6b Spouse/RDP ...Regular ...... Severely disabled ......b

6c All dependents First names __________________________________c6dDisabled First names __________________________________d children only

(see instructions)

Total

Total 6e

Checkall thatapply

7a You were: 65 or older BlindSpouse/RDP was: 65 or older Blind

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Form

402011

Full-Year Residents Only

OREGONINDIVIDUAL INCOME TAX RETURN

150-101-040 (Rev. 12-11)

7e I there is a kicker reund,I want to donate mine to theState School Fund

Amended Return

For office use only

K F P J W


10/36

CHARITABLE

CHECKOFF

DONATIONS,

PAGE 14

I want to donate

part of my tax

refund to the

following fund(s)

32 Total tax before credits from front of form, line 31 ............... ............... ................ ............... ................ ............. 32

33 Exemption credit. If the amount on line 8 is less than $127,150, multiply your

total exemptions on line 6e by $179. Otherwise, see instructions on page 18 ....... 3334 Retirement income credit. See instructions, page 19 .............................................. 3435 Child and dependent care credit. See instructions, page 20 ................................... 3536 Credit for the elderly or the disabled. See instructions, page 20 ............................. 3637 Political contribution credit. See limits, page 23 ...................................................... 3738 Credit for income taxes paid to another state. State:38y Schedule included38z ... 38

39 Other credits. Identify: 39x 39y $ Schedule included 39z 3940 Total non-refundable credits. Add lines 33 through 39 ................ ............... ................ ............... ............... ...4041 Net income tax. Line 32 minus line 40. If line 40 is more than line 32, enter -0- ......................................... 4142 Oregon income tax withheld. Include Form(s) W-2 and 1099 .............................. 4243 Estimated tax payments for 2011 and payments made with your extension ............. 4344 Earned income credit. See instructions, page 25 .................................................... 4445 Working family child care creditfrom WFC, line 18 ........................ ...................... 4546 Mobile home park closure credit. Include Schedule MPC ....................................... 4647 Total payments and refundable credits. Add lines 42 through 46................................................................ 4748 Overpayment.If line 41 is less than line 47, you overpaid. Line 47 minus line 41 ....OVERPAYMENT4849 Tax to pay.If line 41 is more than line 47, you have tax to pay. Line 41 minus line 47 .... TAX TO PAY 4950 Penalty and interest for filing or paying late. See instructions, page 25 .....................50

51 Interest on underpayment of estimated tax. Include Form 10 and check box 51Exception # from Form 10, line 1 51a Check box if you annualized 51b

52 Total penalty and interest due. Add lines 50 and 51 ............... ............... ............... ................ ............... ........... 52

53 Amount you owe.Line 49 plus line 52 ...............................................................AMOUNT YOU OWE5354 Refund. Is line 48 more than line 52? If so, line 48 minus line 52 ..........................................REFUND5455 Estimated tax.Fill in the part of line 54 you want applied to 2012 estimated tax ... 55 Oregon Nongame Wildlife56 Prevent Child Abuse57 Alzheimers Disease Research58 Stop Dom. & Sexual Violence59 AIDS/HIV Education & Svcs.60 Habitat for Humanity61 OR Head Start Association62 OR Military Financial Assist.63 Oregon Historical Society64 Oregon Food Bank65 Albertina Kerr Centers66 American Red Cross67 Charity code 68a 68b Charity code 69a 69b70 Political party $3 checkoff. Party code:

70a You

70b Spouse/RDP........

70

71 Total. Add lines 55 through 70. Total cant be more than your refund on line 54 ............... ................ ..........7172 NET REFUND.Line 54 minus line 71. This is your net refund ..................................... NET REFUND72

73 For direct deposit of your refund, see instructions, page 26. Type of account: Checking or Savings

Will this refund go to an account outside the United States? Yes

Page 2 2011 Form 40

NONREFUNDABLE

CREDITS

ADD TOGETHER

Important: Include a copy of your federal Form 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ.

PAYMENTS AND

REFUNDABLE

CREDITS

Include ScheduleWFC if you claim

this credit

ADD TOGETHER

These willreduce

your refund

Routing No. Account No.DIRECT

DEPOSIT

Under penalty for false swearing, I declare that the information in this return is true, correct, and complete.

Signature of preparer other than taxpayerYour signature Date

Address Telephone No.XX

Spouses/RDPs signature (if filing jointly, BOTH must sign) Date

X

License No.

Include proof

If you owe, make your check or money order payable to the Oregon Department of Revenue.Write your daytime telephone number and 2011 Oregon Form 40 on your check or money order.

Include your payment, along with the payment voucher on page 19, with this return.

See instructions

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Oregon Department of RevenuePO Box 14555Salem OR 97309-0940

MailREFUNDreturnsandNO-TAX-DUE

returns to

MailTAX-TO-PAY

returns to

REFUNDPO Box 14700Salem OR 97309-0930

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150-101-040 (Rev. 12-11)


11/36

NOW GO TO THE BACK OF THE FORM

8 Federal adjusted gross income. Federal Form 1040, line 37; 1040A, line 21; 1040EZ, line 4;

1040NR, line 36; or 1040NR-EZ, line 10. See instructions, page 13 ........................................................... 8

9 Interest and dividends on state and local government bonds outside o Oregon ... 9

10 Other additions. Identify: 10x 10y $ Schedule included 10z 10

11 Total additions. Add lines 9 and 10 ................ ............... ................ ............... ................ ............... ............... . 11

12 Income ater additions. Add lines 8 and 11 .............. ................ ............... ............... ................ ............... ...... 12

13 2011 ederal tax liability ($0$5,950; see instructions or the correct amount) ..... 13

14 Social Security included on ederal Form 1040, line 20b; or Form 1040A, line 14b ... 14

15 Oregon income tax reund included in ederal income ............................................ 15

16 Interest rom U.S. government, such as Series EE, HH, and I bonds ..................... 16

17 Federal pension income. See instructions, page 15. 17a % 17b % ... 17

18 Other subtractions. Identify:18x 18y$ Schedule included 18z 18

19 Total subtractions. Add lines 13 through 18 ................ ............... ................ ............... ............... ................ ... 19

20 Income ater subtractions. Line 12 minus line 19 ........................................................................................ 20

If you are claiming itemized deductions, fill in lines 2125. If you are claiming the standard deduction, fill in line 26 only.

21 Itemized deductions rom ederal Schedule A, line 29 ............................................ 21

22 Special Oregon medical deduction (age restricted, see instructions, page 17) ...... 22

23 Total Oregon itemized deductions. Add lines 21 and 22 ......................................... 23

24 State income tax claimed as an itemized deduction.......................................... 24

25 Net Oregon itemized deductions. Line 23 minus line 24.........................................

25OR

26 Standard deduction rom page 17 ............... ................ ............... ................ ............. 26

27 Total deductions. Line 25 or line 26, whichever is larger......................................................................... 27

28 Oregon taxable income. Line 20 minus line 27. I line 27 is more than line 20, enter -0- .........................28

29 Tax. See instructions, page 18. Enter tax here ........................................................ 29

Check i tax is rom: 29a Tax tables or charts or 29b Form FIA-40 or 29c Worksheet FCG

30 Interest on certain installment sales......................................................................... 30

31 Total tax beore credits. Add lines 29 and 30 ...................................OREGON TAX BEFORE CREDITS 31

ADDITIONS

Round to the nearest dollar

DEDUCTIONS

TAX

SUBTRACTIONS

Include

proof ofwithholding(W-2s,1099s),payment,and paymentvoucher

Either line 25 or 26

Deceased

Deceased

7d Someoneelse can claim youas a dependent

7c You haveederalForm 8886

7b Youiled anextension

Fiscal year ending


Spouses/RDPs frst name and initial i joint return



Last name Social Security No. (SSN)

Spouses/RDPs last name i joint return Spouses/RDPs SSN i joint return

Telephone numberCurrent mailing address

City State ZIP code I you fled a return last year, and yourname or address is dierent, check here

( )Country

1 Single2a Married fling jointly2b Registered domestic partners (RDP) fling jointly3a Married fling separately:

Spouses name _____________________________ Spouses SSN ___________________

3b Registered domestic partner fling separately:Partners name _____________________________ Partners SSN ___________________

4 Head o household: Person who qualifes you ________________________________5 Qualiying widow(er) with dependent child

FilingStatus

Checkonlyonebox

Exemptions

6a Yoursel .......... .Regular ...... Severely disabled ....6a

6b Spouse/RDP ...Regular ...... Severely disabled ......b

6c All dependents First names __________________________________c6dDisabled First names __________________________________d children only

(see instructions)

Total

Total 6e

Checkall thatapply

7a You were: 65 or older BlindSpouse/RDP was: 65 or older Blind

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Form

402011

Full-Year Residents Only

OREGONINDIVIDUAL INCOME TAX RETURN

150-101-040 (Rev. 12-11)

7e I there is a kicker reund,I want to donate mine to theState School Fund

Amended Return

For office use only

K F P J W


12/36

CHARITABLE

CHECKOFF

DONATIONS,

PAGE 14

I want to donate

part of my tax

refund to the

following fund(s)

32 Total tax before credits from front of form, line 31 ............... ............... ................ ............... ................ ............. 32

33 Exemption credit. If the amount on line 8 is less than $127,150, multiply your

total exemptions on line 6e by $179. Otherwise, see instructions on page 18 ....... 3334 Retirement income credit. See instructions, page 19 .............................................. 3435 Child and dependent care credit. See instructions, page 20 ................................... 3536 Credit for the elderly or the disabled. See instructions, page 20 ............................. 3637 Political contribution credit. See limits, page 23 ...................................................... 3738 Credit for income taxes paid to another state. State:38y Schedule included38z ... 38

39 Other credits. Identify: 39x 39y $ Schedule included 39z 3940 Total non-refundable credits. Add lines 33 through 39 ................ ............... ................ ............... ............... ...4041 Net income tax. Line 32 minus line 40. If line 40 is more than line 32, enter -0- ......................................... 4142 Oregon income tax withheld. Include Form(s) W-2 and 1099 .............................. 4243 Estimated tax payments for 2011 and payments made with your extension ............. 4344 Earned income credit. See instructions, page 25 .................................................... 4445 Working family child care creditfrom WFC, line 18 ........................ ...................... 4546 Mobile home park closure credit. Include Schedule MPC ....................................... 4647 Total payments and refundable credits. Add lines 42 through 46................................................................ 4748 Overpayment.If line 41 is less than line 47, you overpaid. Line 47 minus line 41 ....OVERPAYMENT4849 Tax to pay.If line 41 is more than line 47, you have tax to pay. Line 41 minus line 47 .... TAX TO PAY 4950 Penalty and interest for filing or paying late. See instructions, page 25 .....................50

51 Interest on underpayment of estimated tax. Include Form 10 and check box 51Exception # from Form 10, line 1 51a Check box if you annualized 51b

52 Total penalty and interest due. Add lines 50 and 51 ............... ............... ............... ................ ............... ........... 52

53 Amount you owe.Line 49 plus line 52 ...............................................................AMOUNT YOU OWE5354 Refund. Is line 48 more than line 52? If so, line 48 minus line 52 ..........................................REFUND5455 Estimated tax.Fill in the part of line 54 you want applied to 2012 estimated tax ... 55 Oregon Nongame Wildlife56 Prevent Child Abuse57 Alzheimers Disease Research58 Stop Dom. & Sexual Violence59 AIDS/HIV Education & Svcs.60 Habitat for Humanity61 OR Head Start Association62 OR Military Financial Assist.63 Oregon Historical Society64 Oregon Food Bank65 Albertina Kerr Centers66 American Red Cross67 Charity code 68a 68b Charity code 69a 69b70 Political party $3 checkoff. Party code:

70a You

70b Spouse/RDP........

70

71 Total. Add lines 55 through 70. Total cant be more than your refund on line 54 ............... ................ ..........7172 NET REFUND.Line 54 minus line 71. This is your net refund ..................................... NET REFUND72

73 For direct deposit of your refund, see instructions, page 26. Type of account: Checking or Savings

Will this refund go to an account outside the United States? Yes

Page 2 2011 Form 40

NONREFUNDABLE

CREDITS

ADD TOGETHER

Important: Include a copy of your federal Form 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ.

PAYMENTS AND

REFUNDABLE

CREDITS

Include ScheduleWFC if you claim

this credit

ADD TOGETHER

These willreduce

your refund

Routing No. Account No.DIRECT

DEPOSIT

Under penalty for false swearing, I declare that the information in this return is true, correct, and complete.

Signature of preparer other than taxpayerYour signature Date

Address Telephone No.XX

Spouses/RDPs signature (if filing jointly, BOTH must sign) Date

X

License No.

Include proof

If you owe, make your check or money order payable to the Oregon Department of Revenue.Write your daytime telephone number and 2011 Oregon Form 40 on your check or money order.

Include your payment, along with the payment voucher on page 19, with this return.

See instructions

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.00

.00

.00

.00

.00

Oregon Department of RevenuePO Box 14555Salem OR 97309-0940

MailREFUNDreturnsandNO-TAX-DUE

returns to

MailTAX-TO-PAY

returns to

REFUNDPO Box 14700Salem OR 97309-0930

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150-101-040 (Rev. 12-11)


13/36Visit our website at www.oregon.gov/dor. 13Line instructions

Form 40 line instructionsThe following instructions are for lines not fully

explained on the form. For general Form 40 instruc-

tions,seepage6.

Do not fill in cents. Youmustroundoffcentstothe

nearestdollar.Forexample,$99.49becomes$99.00,and$99.50becomes$100.00.

8 Federal adjusted gross income.Enteryourfed-eral adjusted gross income from Form 1040,line37;Form1040A,line21;Form1040EZ,line4;Form1040NR,line36;orForm1040NR-EZ,line10.Youmustincludeacopy(frontandback)ofyourfederalreturnwithyourOregonForm40.Thishelpsusverifyyourincomeandprocessyourreturnfaster.

Additions

TIP Additions is not an area used by taxpay-ers who traditionally filed Form 40S. Ifyou used Form 40S last year and your income sourceshavent changed, you will not have any additions onyour 2011 Oregon return and can skip to line 12.

Generally,additionsareitemsnottaxedbythefederalgovernment,buttaxedbyOregon.AdditionsincreasetheincometaxedbyOregon.

9 Interest and dividends on state and local gov-ernment bonds outside of Oregon.YoumustaddtoOregonincomeanyinterestanddividendsyoureceived from state and local governments outsideOregon.Youdontpayfederaltaxonthisinterest,butyoudopayOregontax.

Example: Include interest from state of Washing-tonbondsorfromSanFranciscocitybonds.Donotinclude interest from Oregon government bonds orinterest fromU.S. territoriesorpossessions (such asGuam,PuertoRico,ortheVirginIslands).

10 Other additions.Youmayneed toreportoneormoreotheradditionsexplainedhere.Pleaseidentifytheadditionusingthenumericcodeshown.IfyouhaveonlyoneOtheraddition,enterthecode

online10xandtheamountonlines10yand10.Forexample,ifyourereportinga$200additionforclaimofright,enter103online10xand$200onlines10yand10.IfyoureclaimingmorethanoneOtheraddi -tions,donotenteracodeoramountonline10xor10y.Instead,checkbox10zandincludeScheduleOR-ASCwithyourreturnwiththenumericcodesandamountsoftheadditions.EnterthetotalfromScheduleOR-ASConline10.

Federal deduction for long-term care insurancepremiums [code 104]. Will you claim an Oregon

long-termcareinsurancepremiumscreditthisyear?DidyouclaimafederaldeductiononfederalSched-uleAforthepremiums?Ifso,youmustaddtoOre-gonincometheamountofpremiumsthatresultedinataxbenefitonyourfederalreturn.Downloadthe

publicationLong-Term Care Insurance Premiums TaxCreditfromourwebsiteorcontactustoorderit.

Federal income tax refunds [code 109]. Did youget a federal taxrefund in 2011becauseyou filedanamendedfederalreturnforaprioryearorwereaudited? Ifso,youmustaddbackthepartofyourrefundthatwasclaimedaspartofyourfederaltaxsubtractiononyourOregonreturnfortheprioryear.

Thefollowingadditionsapplytoonlyafewpeopleandarenotexplainedinthisbooklet.Formoreinfor-mation,gotoourwebsiteorcontactus.

529OregonCollegeSavingsNetworkplannon-qualifiedwithdrawal[code117].Basisadjustments[code101].Depletioninexcessofpropertybasis.DepreciationdifferenceforOregon.GainorlossonthesaleofdepreciablepropertywithdifferentbasisforOregon.

Passiveactivitylosses.Suspendedlosses.

Businesscredit,unused[code122].Claimofrightincomerepayments[code103].DispositionofinheritedOregonfarmlandorfor-estland[code106].

Domestic production activities deduction [code 102].Federal election on interest anddividends of aminorchild[code107].

Fiduciaryadjustments[code100].Accumulationdistributionfromatrust.Federal estate tax on income in respect of adecedent.

FiduciaryadjustmentsfromOregonestatesandtrusts.

Gamblinglossesclaimed asan itemizeddeduc-tion[code105].

Individual Development Account (IDA) [code 113].Non-qualifiedwithdrawal.

AddbackforIDAdonationcredit.ItemizedorbusinessdeductionaddbackforOre-goncredits[code104].Contributions to: Child Care Fund, OregonCulturalTrust,OregonProductionInvestmentFund,oruniversityventurefund.

Incometaxespaidtoanotherstate.Long-termcareinsurancepremiums.Self-employedlong-termcareinsurancededuction.

Lump-sumpaymentfromaqualifiedretirementplan[code115].

Continued from page 8


14/36Need help? See page 36.14 Subtractions

Netoperatinglossnon-Oregonsource[code116]. Oregon deferral of reinvested capital gain [code 118]. Partnership or S corporation modifications for Ore-

gon [code 119].Prescriptiondrugplansubsidies[code123].ScheduleAdeductionaddbackforOregonsub-tractions[code105].Gamblinglossesclaimedasitemizeddeduction.RefundofOregononlyScheduleAitemsfroma

prioryear.Speciallytaxedincomeunderfederallaw:passiveforeigninvestmentcompanyincome[code115].

Subtractions

TIPSubtractions is not an area used by tax-payers who traditionally filed Form 40S,

with the exception of the 2011 federal tax liability. If

you used Form 40S last year and your income sourc-

es havent changed, you will only need to compute

2011 federal tax liability subtraction on line 13,

then you can skip to line 19.Generally,subtractionsareitemsthefederalgovern-menttaxesbutOregondoesnot.SubtractionsreducetheincometaxedbyOregon.

13 2011 federal tax liability subtraction.Completethefollowingworksheettodetermineyourfed-eral tax liability subtraction for 2011.Carefully fol-low theinstructions.Dont confuseyourfederal taxliability onyourfederalreturnwiththefederal taxwithheld onyourForm(s)W-2.Theyarenotthesame.RDPs: Use amounts from your actual return(s),notyouras if return.

1. EnteryourfederaltaxliabilityfromForm1040,line55;Form1040A,line35;Form1040EZ,line10;Form1040NR,line52;orForm1040NR-EZ,line15.

1.

2. EnteryourtaxonqualifiedretirementplansfromForm1040,line58;orForm1040NR,line56;anyrecapturetaxesyouincludedonthedottedlineofForm1040,line60;orForm1040NR,line59;andtheamountonForm1040NR,line53.

2.

3. Addlines1and2. 3.

4. EntertheamountreportedonForm1040,line66;orForm1040A,line40.

4.

5. EntertheamountreportedonForm1040,line67.

5.


7. Subtractline6fromline3(iflessthan-0-,enter-0-).

7.

8. Enteryourmaximumallowabletaxliabilitysubtractionfromthetablebelow.Dontfillinlessthan-0-ormorethan$5,950

8.

9. Enterthesmallerofline7orline8hereandonForm40,line13.

9.

If your filing

status is:

And your federal adjustedgross income is:

Then yourmaximumallowable

tax liability

subtraction is:at least

but less

than

Single or

Married/RDP filingseparately

-0- $125,000 $5,950$125,000 $130,000 $4,750$130,000 $135,000 $3,550$135,000 $140,000 $2,350$140,000 $145,000 $1,150

$145,000 or more -0-

Married/RDP filingjointly, or

Head of household, or

Qualifying widow(er)

-0- $250,000 $5,950$250,000 $260,000 $4,750$260,000 $270,000 $3,550$270,000 $280,000 $2,350$280,000 $290,000 $1,150

$290,000 or more -0-

Caution: Dontincludeanyofthefollowingonline2:

Self-employmenttax.SocialSecurityandMedicaretaxontips.Advanceearnedincomecreditpayments.Householdemploymenttaxes.

Are you amending your 2011 return? SeetheOregonAmended Schedule instructions to figure your sub-tractionforfederaltaxliability.

Federal tax from a prior year and foreign tax:Didyoupayadditional federal tax in 2011becauseyouwereauditedorfiledanamendedreturn?Didyoupaytaxestoaforeigncountry?Ifso,youmaybeabletosubtract

theadditional tax. Go to the2011Publication 17 atwww.oregon.gov/dor/formsto see if you qualify forthesesubtractions.

Is the IRS figuring your federal tax for you? DonotwriteanamountonForm40,line13.Youwillnotbeable tofinishyourOregonreturnwithoutyourfed-eral tax liability. Complete the subtractions, deduc-tions,nonrefundablecredits,andpaymentssections,asapplicable.Dont forget toincludeacopyofyourfederalForm1040,1040A,1040EZ,1040NR,or1040NR-EZwithyourOregonreturn.WriteCalculate federaltax inblueorblackinkatthetopleftcornerofyourreturn.Wewill finish yourOregon return for you.BesuretoincludeForm(s)W-2andanyForm(s)1099showing Oregon tax withheld. Go to the signatureblocksectiononpage26.

14 Social Security and tier 1 Railroad RetirementBoard benefits income.FillintheamountfromfederalForm1040,line20b;orForm1040A,line14b.Ifyouhavetier2,windfall/vesteddual,orsupplementalRailroadRetirementBoardbenefits,thesearesubtract-edonline18.Formoreinformation,contactus.


15/36Visit our website at www.oregon.gov/dor. 15Line instructions

15 Oregon income tax refund included in federalincome. Fill in yourOregon state income taxrefundfromfederalForm1040,line10.Do not includelocal, county, or other states tax refunds.

16 Interest and dividends from U.S. government.Fill in interest and dividends from the U.S.governmentthatyouincludedonyourfederalreturn.IncludeU.S. government interest anddividendsyoureceived throughpartnerships orgrantor trusts.See

line18tosubtractU.S.governmentinterestinIRAorKeoghdistributions.Do not include interest on fed-eral tax refunds in the subtraction.

Examples:

Youcansubtractinterest fromU.S.Series EE, I, orHHbondsandTreasurybillsornotes.

Youcansubtractinterestanddividendspaidtoyouby organizations that invest in U.S. governmentsecurities. Thepayermay have given thepercent-ageofinterestanddividendsfromU.S.governmentsecuritiesonyourForm1099.Formoreinformation,gotoourwebsiteorcontactus.

Ifyoureportedinterestordividendsofyourminorchildonyourfederalreturn,youcan subtractanyU.S.governmentinterestincluded.

You must reduce U.S. government interest anddividendsbyany interest expense relatingtoU.S.government obligations deducted on your federalScheduleA.

Note: WhenyousellordisposeofaU.S.governmentobligation,youmustincludeanygainorlossinOre-gonincome.

17

Federal pension income. You may be able to

subtractsomeorallofyourtaxablefederalpen-sion included in 2011 federal income. This includesbenefitspaidtotheretireeorthebeneficiary.Thesub-tractionamountisbasedonthenumberofmonthsoffederalservicebeforeandafterOctober1,1991:

If all your months of federal service were beforeOctober 1, 1991,subtract100percentofthetaxableamountoffederalpensionincomeyoureportedonyourfederalreturn.

If you have no months of service before October 1,1991,youcannotsubtractanyfederalpension.

If your service was both before and after October

1, 1991,subtractapercentageofthetaxablefederalpensionincomeyoureportedonyourfederalreturn.Todetermineyourpercentage,dividethemonthsofservicebeforeOctober1,1991,bythetotalmonthsofservice.Roundtothreeplaces(example:0.4576=45.8percent).Onceyouvedeterminedthepercentage,itwillremainthesameeachyear.Writethepercent-age on line17a. Ifyouhave two federal pensions,writethesecondpercentageonline17bandenteryourtotalsubtractionamountonline17.Figurethepercentageforeachpensionseparately.

Federalpensionsubtractionformula:

Months of servicebefore 10/1/91

Federal pension

amount includedin federal income

=Oregon

subtractionTotal monthsof service

Example: Annworked for the U.S. Forest Servicefrom March 31, 1977, until January 7, 2008. Sheworked a total of 369 months; 174 months wereworkedbeforeOctober1,1991.In2011,shereceived

taxablefederalpensionincomeof$35,000.Usingtheformula,herfederalpensionsubtractionis:

174 $35,000 = $16,520

369

Shecansubtract47.2percentor$16,520($35,0000.472)ofhertaxablefederalpension.Shewillcon-tinuetosubtract47.2percentfromOregonincomeinfutureyears.

18 Other subtractions. You may qualify for oneor more other subtractions explained below.Pleaseidentifythesubtractionusingthenumericcode

shown.IfyouhaveonlyoneOthersubtraction,enterthenumericcodeonline18x andtheamountonlines18yand18.Forexample,ifyoureclaiminga$100Ore-gonLotterysubtraction,enter322online 18xand$100onlines18yand18.

IfyoureclaimingmorethanoneOthersubtractions,do not enter a code or amount on line 18x or 18y.Instead,checkbox18zandincludeScheduleOR-ASCwithyourreturnwiththenumericcodesandamountsof the subtractions. Enter the total from ScheduleOR-ASConline18.Donotusethislinetosubtractfed-eralpension(useline17instead).

529 Oregon College Savings Plan [code 324]. Youcansubtractupto$4,240forjointreturnsorupto$2,120forallotherreturnsforcontributionsmadetoa529OregonCollegeSavingsNetworkaccount in2011.Ifyoucontributemorethanyourlimit,youcancarryforwardtheremainingcontributionnotsub-tractedoverthenextfouryears.Keepacopyofyouraccountstatementwithyourtaxrecords.Formoreinformation,gotowww.oregoncollegesavings.com,orcall866-772-8464.

American Indian [code 300]. Are you an enrolledmemberofafederallyrecognizedAmericanIndian

tribe?Youmaybeabletosubtractallorpartofyourincomeifall ofthefollowingaretrue:

Youareanenrolledmemberofafederallyrecog-nizedAmericanIndiantribe,and

YourincomewasfromsourceswithinfederallyrecognizedIndiancountryinOregon,and

YoulivedinfederallyrecognizedIndiancountryinOregonwhentheincomewasearned.

YoumustincludeacompletedcopyofyourExemptIncome Schedule for Enrolled Members of a Federally


16/36Need help? See page 36.16 Line instructions

Recognized American Indian Tribe withyour return.Downloadtheschedulefromourwebsiteorcontactustoorderit.

Military active duty pay [code 319].IfyouincludedU.S.militaryactivedutypayinyourfederaltaxableincome,youmayqualifyforasubtractiononyourOregonreturn.

YoucansubtractallmilitaryactivedutypayearnedoutsideOregonduring theyear plusupto $6,000military active duty pay earned in Oregon. Note:Your total subtraction cannot be more than yourtotaltaxablemilitaryactivedutypayincome.

Guardandreserveannualtraining,weekenddrills,and inactive duty training are eligible for thissubtraction.

Example: Barry, an Oregon resident, enlisted intheArmyin2000.FromJanuaryuntilAugust2011,he was stationed at Fort Lewis, Washington andhe earned $24,000 active duty pay. From AugustthroughDecember,hewasarecruiterinOregonand

earned$12,000.Hecansubtractthe$24,000earnedoutsideOregonandthe$6,000earnedinOregon.

Oregon National Guard and reserve pay subtraction[code 319].Thefollowingquestionswillhelpdeter-mineifyoucanclaimthissubtraction.

Were you a member of the Oregon NationalGuardorreservesatanytimeduringtheyear?

Wereyourequiredtobeawayfromhomeover-nightforatleastthreeweeksconsecutively?

If you answered yes to both of these questions, youcan subtract all of the Oregon National Guard or

reserve pay you earned while you met the above qual-ifications. For more information, visit our website.

Oregon Lottery [code 322].AlthoughOregondoesnottaxOregonLotterywinningsof$600orlessperticket,thefederalgovernmentdoes.OregonLotteryincludesPowerballticketsyoupurchasedinOregon.

YoucansubtractthefollowingwinningsincludedinyourfederalincomefromOregonincome:

Winningsof$600orlessfromeachsingleticketorplay,and

Annual payments from tickets bought before1998.

Example: David won two prizes in 2011: $1,000fromanOregonLotteryscratch-offticketand$500playing an Oregon Lottery Keno game. He mustinclude the total $1,500 in federal income. Davidcansubtract$500onhisOregonreturnbecausetheOregon Keno winnings were from a single gameandunderthe$600limit.Hecannotsubtractanyofthe$1,000hewononthescratch-offticket,sincetheprizewasmorethan$600.

Donotsubtractanyothertypeofwinningssuchaswinningsfromtribalgamingcenters.

Tuition and fees deduction [code 308]. Did youclaim theAmericanopportunityorlifetimelearn-ingcreditonyourfederalreturn?Ifso,youwerenot

allowedafederaltuitionandfeesdeductionbecauseyouclaimedthefederalcredit.BecauseOregondoesnot have credits similar totheAmericanopportu-nityor lifetime learning credits, you can subtract

thefederaltuitionandfeesdeductiononyourOre-gonreturnuptotheamountyouwouldhavebeenallowedonyourfederalreturn.Youcanclaimthe

lesserof$4,000oryouractualexpenses.Ifyouwerenot allowed a deduction on your federal returnbecauseyouaresomeoneelsesdependent,youcan-

notclaimthissubtraction.

Thefollowingsubtractionsapplytoonlyafewpeo -pleandarenotexplainedinthisbooklet.Formore

information,gotoourwebsiteorcontactus.

Artistscharitablecontribution[code301].

Basisadjustments[code304]. DepreciationdifferenceforOregon.

GainorlossonthesaleofdepreciablepropertywithadifferentbasisforfederalandOregonpurposes.

Passiveactivitylosses.CapitalConstructionFund(CCF)[code339].Claimofrightincomerepayments[code302].Construction worker and logger commuting

expenses[code303]. Employee retirement plans previously taxed

[code 327].

Federalbusinesscredits[code340].Federal gainpreviously taxed by Oregon [code306].

Federaltaxfromaprioryear[code309].

Fiduciaryadjustments fromOregon estates andtrusts[code310].

Filmproductionlaborrebate[code336].Foreigntax[code311].

Individual Development Account (IDA) [code 314].Interestfromlocalgovernmentbond[code317].IRAconversionspreviouslytaxed[code348].

Landdonationstoeducationalinstitutions[code

316].Mobilehomeparkcapitalgain[code338].

Mobilehometenantpayment[code344].Mortgageinterestcredit[code320].Netoperatingloss[code321].

Oregoninvestmentadvantage[code342].Oregon National Guard Youth Challenge Pro-gram[code345].

Partnership or S corporation modifications for

Oregon[code323].PublicSafetyMemorialFundaward[code329].


17/36Visit our website at www.oregon.gov/dor. 17Deductions

RailroadRetirementBoardbenefits:tier2,wind-fall/vested dual, supplemental, and railroadunemploymentbenefits[code330].

Scholarship awards used for housing expenses[code333].

Severancepayinvestedinasmallbusiness[code349].

TaxablebenefitsforformerRDPs[code347].TRICAREincome,firstandsecondyearparticipa-tion[code343].

U.S.governmentinterestinIRAorKeoghdistri-butions[code331].

Deductions

You can claim net itemized deductions or Oregons

standarddeduction,whicheverislarger,butnotboth.

Ifyouclaimitemizeddeductions,fillinlines2125.Ifyouclaimthestandarddeduction,fillinline26.

TIPStandard deduction is the option usedby taxpayers who traditionally filed

Form 40S. If you used Form 40S last year and yourdeductions havent changed (for instance, youbought a house in 2011 and now have home mort-gage interest), you will use the standard deduction.Skip to the instructions for line 26.

Note: Ifyouremarried/RDPfilingseparatelyandonespouse/RDPitemizes,bothmustitemizedeductions.Ifyourspouse/RDPitemizesandyoudont,yourstan-darddeductionis-0-.

21 Itemized deductions.YoucanclaimyourtotalitemizeddeductionsafterfederallimitationsasshownonfederalScheduleA,line29.YoucanclaimitemizeddeductionsforOregonevenifyoudonthaveenoughdeductionstoitemizeonyourfederalreturn.If you itemize for Oregon only,filloutafederalScheduleAforOregonpurposes.BesuretoincludeyourstatetaxesevenwhenitemizingforOre-gononly,thensubtractyourOregonstateincometaxonline24.UseyourfederaladjustedgrossincometofiguretheScheduleAlimitations.RemembertokeepScheduleAwithyourtaxrecords.

22

Special Oregon medical deduction.Wereyouoryourspouse/RDPage 62 or older onDecem-

ber 31, 2011? If so, enter the amount from federalScheduleAline1orline3,whicheverisless.Toclaimthisdeduction,youmustitemizeyourdeductionsforOregon.

24 State income tax or sales tax claimed as an item-ized deduction.Fillin theamount ofOregonstateincometax oranystateandlocalsalestaxyouclaimedasan itemizeddeductiononfederal Sched-uleA,line5.Dontincludelocalorcountyincometaxamounts.

AreyouclaiminganOregoncreditforincometaxespaidtoanotherstateanddeductingtheotherstatestaxesonScheduleA?Ifso,includetheotherstates2011nettaxliability,ortheotherstates2011taxclaimedasanitemizeddeduction,whicheverisless.Forthecreditinstructions,seepage23.

26 Standard deduction.Yourstandarddeductionisbasedonyourfilingstatus:Single ......................................................................... $1,980

Married/RDP filing jointly ......................................... 3,960

Married/RDP filing separatelyIf spouse/RDP claims standard deduction .......... 1,980If spouse/RDP claims itemized deductions ..............-0-

Head of household ......................................................3,185

Qualifying widow(er) ................................................. 3,960

Standard deductionAge 65 or older, or blind.Didyoucheckoneormoreoftheboxesonline7a,Form40,becauseyouoryourspouse/RDPareage65orolderorblind?Ifso,youareentitledtoan additional deduc-tion amount.

Ifyoucheckedoneormoreoftheboxesonline7a,multiplythenumberofboxescheckedby:

$1,000ifmarried/RDPorqualifyingwidow(er);or$1,200ifsingleorheadofhousehold.

Addthisamounttothestandarddeductionforyourfilingstatusfromabove.Fillinthetotalonline26.

Standard deductionDependents. If someone elsecanclaimyouasadependent,yourstandarddeduc-tionislimitedtothelargerof:

Yourearnedincomeplus$300,uptothemaximumallowedforyourfilingstatus,or

$950.

The limit applies even if you qualify but are notclaimedasadependentonanotherpersonsreturn.

Ifyouareadependent,usethefollowingworksheettofigureyourstandarddeduction,unlessyouaremar-ried/RDP.Ifyouareadependentandmarried/RDP,pleasecontactus.

Standard deduction worksheet for single dependents

1. Enteryourearnedincome.(Seedefinitiononpage18.)

1.

2. Additional$300. 2. 300


4. Minimumstandarddeduction. 4. 950

5. Enterthelargerofline3orline4. 5.

6. Basicstandarddeductionforsingle.

6. 1,980

7. Enterthesmallerofline5orline6. 7.

8. Ifyoureunderage65,enter-0-.Ifyoureage65orolder,enter$1,200.

8.


18/36Need help? See page 36.18 Credits

9. Ifyourenotblind,enter-0-.Ifyouareblind,enter$1,200.

9.

10. Addlines7,8,and9.EnterthetotalhereandonForm40,line26.Thisisyourstandarddeduction.

10.

Earned income is salaries, wages, tips, professionalfees,orotheramountsreceivedas payforworkyouactuallyperformed,andanypartofascholarshiporfellowshipgrantyoureceivedthatisincludedinyour

grossincome.Standard deductionNonresident aliens. The stan-darddeductionfornonresidentaliens(asdefinedbyfederallaw)is-0-.

Oregon tax

29 Tax from tax tables or tax rate charts. FigurethetaxonyourOregontaxableincome,line28.Gotothetaxtablesorratechartsonpages3335.Fillinyourtaxamountonline29andcheckbox29a.Dou-ble-checkthatthetaxyouenterediscorrect.

Example 1: A single Oregon taxpayer has taxableincomeof$19,500.ThetaxpayerwillusecolumnSonpage34.Thetaxis$1,543.

Example 2: A married couple has Oregon taxableincomeof$75,500.Theyarefilingjointly.Theywillusethemarried/RDPfilingjointlyratechartJonpage35.Theyfiguretheirtaxlikethis:

Oregontaxableincome $75,500

Subtract 50,000

25,500

Multiplyby9% 0.092,295

Thenadd + 4,066

TheirOregontaxis $6,361

Tax from farm income averaging or farm asset capital

gain method. If youqualify, you cancomputeyourOregontaxusingoneofthefollowingmethods:

Farm income averaging method.Youcanusethefed-eral farm incomeaveragingmethodevenifyoudidnotusefarmincomeaveragingonyourfederalreturn.

IfyouuseFormFIA-40,Oregon Farm Income Averag-ing for Full-Year Residents,tocalculateyourtax,enterthetaxamountfromFormFIA-40,line22,onForm40,line29.Checkbox29blabeledFormFIA-40.IncludeacopyofFormFIA-40withyourreturn.Downloadtheformfromourwebsiteorcontactustoorderit.

Farm asset capital gain method. Did you sell orexchange capital assets primarily used in farmingbecauseyouweregettingoutofafarmingbusiness?Or, did you sell or exchange a farming business inwhichyouheldatleasta10percentownershipinterest?

Ifso,youmaybeeligibleforareducedtaxrateonthenetcapitalgainfromtheproceeds.

IfyouuseWorksheetFCG,Farm Liquidation Long-TermCapital Gain Tax Rate, tocalculateyourtax,enterthetaxamountfromWorksheetFCG,line7,onForm40,line29.Checkbox29clabeledWorksheetFCG.DonotincludeacopyofWorksheetFCGwithyourreturn.Keepacopywith yourrecords.Download theformfromourwebsiteorcontactustoorderit.

30 Interest on certain installment sales. Do youhaveinstallmentsaleswhereyouwererequiredtopayinterestonthedeferredtaxliabilityforfederalpurposes? If so, youmust alsocompute interest forOregon.TheamountdueforOregoniscomputedthesameasthefederalamount.Theinterestrateis0.4167percentpermonthfor2011.

CreditsNon-refundable

MostcreditscannotbemorethanyourOregontaxlia-bility.Somecreditshaveacarryforwardprovisionthat

allowsyoutousetheunusedbalanceinthenextyear.Usecreditsthatcannotbecarriedforwardfirst.

33 Exemption credit. Your exemption creditmaybereducedifyourfederaladjustedgrossincome(Form40,line8)ismorethanthethresholdforyourfilingstatus.

Ifthe charts below apply toyou, follow theinstruc-tions in thebox.Otherwise, completetheexemptioncreditworksheetbelow.

If your filing status is:

AndForm40,line8is

less than or equal to:

Single $169,550

Married/RDP filing joint orqualifying widow(er)

$254,350

Married/RDP filing separately $127,150

Head of household $211,950

multiply your total exemptions on line 6e by $179.Enter the result on Form 40, line 33.

Do not use the exemption credit worksheet

If your filing status is:

AndForm40,line8

is more than:

Single $252,050

Married/RDP filing joint or

qualifying widow(er)$336,850

Married/RDP filing separately $168,400

Head of household $294,450

multiply your total exemptions on line 6e by $59.

Enter the result on Form 40, line 33.

Do not use the exemption credit worksheet


19/36

OREGON INCOME TAX PAYMENT VOUCHER Department of Revenue Use Only

FORM

40-V

Enter Payment Amount

$ . 0 0

Fiscal Year Ending

Payment Type (check only one):

2011 Return Prior Tax Year:AmendedTax Year:

Last name First name and initial

Spouses/RDPs last name if joint payment Spouses/RDPs first name and initial

Current mailing address City

SSN

Spouses/RDPs SSN if joint payment

State ZIP code

First time Oregon ler

New name or address

Daytime telephone number:

Check if:

150-101-172-1 (Rev. 12-11)

Mail your payment and tax return to: Oregon Dept. of Revenue, PO Box 14555, Salem OR 97309-0940

Exemption credit worksheet:

1. EntertheamountfromForm40,line8.

1.

2. Entertheamountshownbelowforyourfilingstatus.

Single$169,550Married/RDPfilingjointlyorqualifyingwidow(er)$254,350

Married/RDPfiling

separately$127,150Headofhousehold$211,950

2.

3. Line1minusline2. 3.

4. Divideline3by$2,500($1,250ifmarried/RDPfilingseparately).Roundtheresulttothenear-estwholenumber(forexample,increase0.0004to1).

4.

5. Multiplyline4by2%(0.02)andentertheresultasadecimal.

5.

6. Multiplythetotalnumberofexemptionsclaimedonline6eof

yourOregonreturnby$179andentertheresulthere.

6.

7. Multiplythedecimalonline5byline6.

7.

8. Exemption credit. Line6minusline7.EntertheresulthereandonForm40,line33.

8.

34 Retirement income credit.Ifyouwereage62orolder onDecember 31, 2011, andreceivingretirementincome,youmayqualifyforaretirementincomecreditif:

Yourhouseholdincomeislessthan$22,500($45,000ifmarried/RDPfilingjointly),and

Your Social Security benefits and/or tier 1 Rail-

roadRetirementBoardbenefitsarelessthan$7,500

($15,000ifmarried/RDPfilingjointly), and

Your household income plus your Social Security

and/or tier 1 Railroad Retirement Board benefits

is less than$22,500($45,000ifmarried/RDP filing

jointly).

Retirement income includes payments reported in

Oregontaxableincomefrom:

U.S.governmentpensions(includingmilitary).

Stateorlocalgovernmentpensions.

Employeepensions.

Individualretirementplans.

Deferred compensation plans including defined

benefit,profitsharing,and401(k).

Employeeannuityplans.

Usethefollowingworksheettofigureyourcredit.

1. Entertheretirementincomeoftheeligibleindividual(s)includedon

Form40,line8.

1.

2. EnteranyfederalpensionincomesubtractedfromOregonincomeonForm40,line17.Seepage15.

2.

3. NetOregontaxablepension.Line1minusline2.

3.

4. Enter$7,500($15,000ifmarried/RDPfilingjointly).

4.

5. Enterbothspouses/RDPstotal2011SocialSecurityandtier1RailroadRetirementBoardbenefits.

5.

6. Line4minusline5,butnot

lessthan-0-.

6.

7. Enteryourhouseholdincome(todetermine,seebelow).

7.


20/36

Continued on page 23

8. Householdincomebase.Enter$15,000($30,000ifmarried/RDPfilingjointly).

8.

9. Line7minusline8,butnot lessthan-0-.

9.

10. Line6minusline9,butnotlessthan-0-.

10.

11. Enterthesmallerofline3orline10. 11.

12. Multiplyline11by9percent(0.09).EntertheresulthereandonForm

40,line34.

12.

What is included in household income? Householdincomeincludesalltaxableandnontaxableincomeof

eachspouse/RDPexcept:

SocialSecurityandtier1RailroadRetirementBoard

benefits.Yourstateincometaxrefund.

PensionincomeexcludedfromfederalAGIthatisareturnofyourcontributions.

PensionsthatarerolledoverintoanIRA.

Anylossesclaimedarelimitedto$1,000foreachactiv-ity.Depreciationislimitedto$5,000.

Thecreditcannotbemorethanyourtaxliability.You

cannotcarryanyamountthatismorethanyourtaxliabilityovertonextyear.Youmayclaimthis credit

orthecreditfortheelderlyorthedisabled,line36,butnotboth.

35 Child and dependent care credit. Youreallowed anOregoncreditonlyifyouqualifyfor thefederalchild and dependent care credit.You

maystillbeabletoclaimtheOregoncreditevenifyou

cantuseallofyourfederalcredit.Note to RDPs: Useyouras if federalreturntoseeifyouqualifyfortheOregoncredit.

Usethefollowingworksheet:

1. EntertheamountfromfederalForm2441,line6.Donotentermorethan$3,000foronequalifyingchildor$6,000fortwoormorequalifyingchildren.

1.

2. Enterthedecimalamountfromthefollowingtable.

2.

If your federal taxable Your incomefromForm1040, decimal line43;orForm1040A, amount line27is: is:

Over But not over $5,000 0.30

5,000 10,000 0.15

10,000 15,000 0.0815,000 25,000 0.06

25,000 35,000 0.0535,000 45,000 0.04

45,000 0.00

3. Multiplytheamountonline1bythedecimalonline2.EnterhereandonForm40,line35.

3.

Did you pay 2010 child care expenses in 2011?Ifso,youmaybeabletousethatamounttoincreaseyour2011Oregonchildanddependentcarecredit.Formoreinformation,pleasecontactus.

Carryforward. Your total 2011 child and dependentcarecreditcantbemorethanyour2011Oregontaxliability.Youcancarryforwardanyexcesscreditoverthenextfiveyears.Iftheexcessisntusedwithinfiveyears,itslost.Seeothercreditsinstructions,page23.

36 Credit for the elderly or the disabled. TheOre-goncreditis40percentofyourfederalcredit.


21/36

ScheduleOR-ASC

Oregon Adjustments

for Form 40 Filers 2011Last name

Spouses/RDPs last name

Social Security number (SSN)

Spouses/RDPs SSN


Spouses/RDPs first name and initial

YOU MUST INCLUDE THIS SCHEDULE WITH YOUR OREGON INCOME TAX RETURN

Instructions: Use this form to claim more than one of thefollowing on your return:

Other additions.

Other subtractions.

Credits for income taxes paid to another state.

Other credits.

Identify the code and amount for each item you are claiming.

If you are not claiming more than one of each item, do not

use this form; instead identify the item on your return. If you

have more items than will fit on a single schedule, provide the

codes and amounts on additional schedules and add the total

to your tax return. Include this schedule with your Form 40.

Remember: Check the Schedule Included box on yourForm 40 for other additions, other subtractions, credit forincome taxes paid to another state, or other credits youclaim below.

Other additions (codes 100131)Code Amount

10a 10b10c 10d10e 10f10g 10h10i 10j

Enter total on Form 40, line 10 $

Other subtractions (codes 300350)Code Amount

18a 18b18c 18d18e 18f18g 18h18i 18j


Credit for income taxes paid to another state

State abbreviation Amount

38a 38b38c 38d38e 38f38g 38h38i 38j


Other credits (codes 700751)Code Amount

39a 39b39c 39d39e 39f39g 39h39i 39j


FOR COMPUTER USE ONLY

150-101-063 (Rev. 12-11)


22/36


23/36Visit our website at www.oregon.gov/dor. 23Credits

Continued from page 20YoucanclaimanOregoncreditonlyifyouqualifyforthefederalcredit.PleasecompletefederalScheduleR,evenifyouarentusingthefederalcredit.

MultiplytheamountonfederalScheduleR,line20by0.40(40percent).RDPs:UseyourasiffederalreturntoseeifyouqualifyfortheOregoncredit.

You can claim this credit or the retirement incomecredit,line34,butnotboth.

37 Political contribution credit. Fill inyourtotalpolitical contributions, up to $100 on a jointreturnorupto$50onall others.Yourcontribution(s)ofmoneymusthavebeenmadeduring2011toanyofthefollowing:

Apoliticalparty.A qualifiedcandidate (or the candidatesprincipalcampaigncommittee)forfederal,state,orlocalofficetobevotedforinOregon.

ApoliticalactioncommitteecertifiedinOregon.

38 Credit for income taxes paid to another state.

Did youpay incometaxes toanother stateorU.S.territoryonincomethatisalsotaxedbyOregon?Ifso,youmaybeabletoclaimthiscredit.

Ifyouwereafull-yearOregonresidentandhadincometaxedbyArizona,California,Indiana,orVirginia,youcannotclaimthecreditonyourOregonreturn.How-ever,youcanclaimthecreditonthenonresidentreturnyoufilewiththosestates.IfincomeistaxedbyOregonandanotherstatenotlistedhere,claimthecreditonyourForm40Oregonresidentreturn,line38.If youonlypaidtaxestooneotherstate,enterthetwo-letter

stateabbreviationonForm40,line38yandthecreditamountonForm40,line38.

Ifyouareclaimingthecreditformorethanonestate,donotenterastateabbreviationonline38y.Insteadcheckbox38zandincludeScheduleOR-ASCwithyourreturnidentifyingthestatesandthecreditamountforeachstate.EnterthetotalforallstatesfromScheduleOR-ASConForm40,line38.

This credit is only for state income tax. Youcannotclaimthiscreditforcityorcountyincometax,salestax, alternative minimum tax (AMT), property tax,schooltax,orbuildingfunds.

Yourcreditisthesmallestofthefollowing:

Theotherstates2011nettaxliability.Your Oregon tax liability after all credits, exceptcreditsforincometaxespaidtootherstates.

Theamountfiguredusingthefollowingformula:

Divideyourmodifiedadjustedgrossincome(MAGI)taxedbybothstatesbyyourtotalMAGI.MultiplytheresultbyyourOregontaxaftersubtractingallothercredits.

Your MAGI taxedby both states

Your Oregon tax aftersubtracting all other credits

Your total MAGI

YourtotalMAGIequalsthesumoflines8and9minuslines1417ofForm40.AddtheamountonForm40,line10,onlyifitsincomeOregontaxesbutthefederalgovernmentdoesnt.SubtracttheamountonForm40,line18,onlyifitsincomethefederalgovernmenttaxesbutOregondoesnt.

Caution:Youcantclaimthiscreditandclaimthetaxyoupaidasanitemizeddeduction.OnForm40,line24,inadditiontotheOregontaxyouclaimasanitem-izeddeduction,fillinthesmallerofthefollowing:

The other states 2011 tax claimed as an itemizeddeduction,or

Theotherstates2011nettaxliability.

Ifthecreditisbasedonataxliabilitypaidintwodif-ferenttaxyears,youmayberequiredtorestorethedeductiontoOregonincomeintwodifferenttaxyears.Formoreinformation,pleasecontactus.

Important! You must include a copy of the other statesreturn and proof of payment with your Oregon return.

39 Other credits.Youmayqualifyforothernonre-fundablecreditslistedonpage24.Pleaseiden-tifythecreditusingthenumericcode.IfyouhaveonlyoneOthercredit,enterthenumericcodeonline39xandtheamountonlines39yand39.Forexample,ifyoureclaiminga$45residentialenergycredit,enter729 on line 39x and $45on lines 39yand 39. IfyoureclaimingmorethanoneOthercredit,do notenter a code or amount on line 39x or 39y. Instead,check box 39z and include Schedule OR-ASC withyourreturnwiththenumericcodesandamountsofthecredits.EnterthetotalfromScheduleOR-ASConForm40,line39.

Biofuelconsumer[code744].Do you use E85 orB99 fuel blends for your car? Do you heat yourhome with wood pellets or biodiesel thats at leastB20? If so, you may be eligible for this credit. Yourcredit is 50 cents per gallon of qualifying fuel

blends, up to $200 per Oregon registered vehicle.For wood pellets, your credit is $10 per bone dryton up to $200 per taxpayer. If heating your homewith qualifying biodiesel, your credit is five centsper gallon up to $200.

Childanddependentcarecarryforward[code704].Toqualify,yournetincometaxonlastyearsOregonreturn must have been zero. Enter the amount ofunusedcreditfromaprioryear.Thepriortaxcarry-forwardplusyourcurrentyearscreditcantbemorethanyourOregontaxliabilityonForm40, line41.Youcancarryforwardanyexcesscreditfromline35overthenextfiveyears.Ifthecarryforwardisntusedwithinfiveyears,itslost.


24/36Need help? See page 36.24 Tax payments

Long-term care insurance premiums [code 716].Youre allowed a long-term care insurance premi-umscreditif:Yourpolicywasissuedin2000orlater,andYou, your parents, or your dependents are thepolicybeneficiaries,and

Youpaidpremiumsfor2011.

Thecreditforsingleandjointfilersisthesmallerof15percentof the premiumspaid or $500. Ifyoure

married/RDPfilingseparately,thecombinedcreditsonthespouses/RDPsreturnscantbemorethanthecredittheywouldhavebeenallowedonajointreturn.

AnyfederalbenefitduetoafederaldeductionforthepremiumsmustbereportedasanOregonaddition.Seepage13.

Employerspayingforlong-termcare insurance foremployeesmayalsoclaimthiscredit.

OregonCulturalTrust[code722].IfyoudonatetoanOregonnonprofitculturalorganizationduringthetaxyearandyoudonateamatchingamounttothe

OregonCulturalTrust,youcanclaimataxcredit. Youcanclaimataxcreditofupto$500pertaxpayer($1,000 on a joint return) for the amount youcontributedtotheOregonCulturalTrust.AnyfederalbenefitduetoafederaldeductionmustbereportedasanOregonaddition.Formoreinformation,pleasecontactus.FormoreinformationabouttheOregonCulturalTrust,gotowww.culturaltrust.org.

Residential energy [code 729]. You must purchasea qualifying energy efficient appliance or vehicle orinstall a solar device or geothermal system. Renterswho purchase qualifying equipment or systems may

also apply for this credit. Only vehicles registered inOregon qualify for this credit. For more information

Oregon Income Tax instructions and schedules

Documents

Transcript of Oregon Income Tax instructions and schedules