You may be able to subtract some or all of your taxable federal pension included in federal income, including benefits paid to the retiree or the beneficiary.

The subtraction amount is based on the number of months of federal service before and after October 1, 1991.

If you do not have any months of service or points earned prior to October 1, 1991, then you cannot take this subtraction.

The pension exclusion is calculated by the user and entered in the program using the following steps:

1. From within your TaxAct® return (Online or Desktop) click on the State tab and then click Oregon directly below the tabs
2. Click Income to expand the category and then click Other Subtractions from Income.
3. Choose Federal Pension Income -307 from the dropdown menu under "Description/Code". 
4. Enter the amount of the subtraction. 
5. Click Continue. 

Federal pension income is pension provided to the user through the federal government. This could be from services with the Department of Agriculture, Air Force, Department of Defense, etc. This would be income paid to the retiree or the beneficiary.

Related Links

• Oregon Form 40 Instructions
• Oregon Department of Revenue: Personal Income Tax