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 State to expand, then click Oregon (or OR). On smaller devices, click in the upper left-hand corner, then click State.
2. Click Income in the Oregon Quick Q&A Topics menu to expand, then click Federal Pension Income Subtraction.
3. Continue with the interview process to enter all of the appropriate information.
4. On the screen titled Oregon - Federal Pension Income Subtraction, click Yes, then click Edit to enter information related to your pension income.

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

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.