Oregon Form 40 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 40, the Oregon Individual Income Tax Return. If you don't live in Oregon, not to worry, we'll be tackling the other 34 states soon enough.
So Oregon's Form 40 is an interesting bird. At first glance, it's only two pages, but sports 73 lines. Seventy-three lines is extraordinarily large for a state form. Heck it's one of the largest in the country. Intimidated? Don't be.
First off, 15 of those 73 lines are allotted for charitable donations. States like New Mexico sport a separate schedule for this section. Another nice feature is that everything you need to do your Oregon return is contained within Form 40. So you won't need to track down additional schedules to finish your return. If you don't appreciate that now, you will when you're filling out your return.
So despite its size, the Form 40 is all about convenience and has definitely earned a solid 7 of 10 on our user-friendly meter. It even offers a free e-file!
Begin by filling in your name, address, telephone and Social Security numbers at the top of the form. Then bang out your filing status, exemptions, dependents, and all the stuff that applies on Line 7. Capiche?
Enter your federal adjusted gross income on Line 8 (just be sure to round this and all other numbers to the closest dollar). Lines 9 through 12 are slotted for any state specific additions, while Lines 13 through 20 are for any state subtractions to your income.
If you generally itemize, you'll have to work through Lines 21 through 25, but if you use the standard deduction, fill it in on Line 26. Now put the larger of Lines 25 or 26 on Line 27. Next, subtract Line 20 from Line 27 to get your Oregon taxable income, which goes on Line 28.
Enter your tax on Line 29; just be sure to declare where you got it from in boxes 29a or 29b. If interest on installment sales applies to you, enter it on Line 30. Now add Lines 29 and 30 on Line 31 to get your total tax, just be sure to carry this amount forward to Line 32 on the top of Page 2.
If your federally adjusted gross income (Line 8) is less than $127,150, multiply the number of exemptions on 6e by $179. If not look up page 33 of the instruction booklet to see how much you should put on Line 33.
Lines 34 through 37 are slotted for political, dependent and elderly credits. Line 38 is for a credit on tax paid to another state, while Line 39 is for any other type of credit, just be sure state its origin. Now add Lines 33 through 39 on Line 40 to get the total of all your refundable credits. Next, subtract Line 40 from Line 32 to get your net income tax, which goes on Line 41.
Enter your Oregon withholdings on Line 42; just be sure to attach your W-2 to your return. If you made any estimated tax payments, enter that amount on Line 43. Lines 44 through 46 are slotted for more credits; just fill in any that apply. Now add Lines 42 through 46 on Line 47 to yield your total payments and refundable credits.
If Line 41 is less than Line 47, enter the difference of your overpayment on Line 48. But if Line 41 is more than Line 47, enter that difference as the amount you owe on Line 49. If you incurred any penalties or interest, work through Lines 50 to 52, otherwise enter your state tax liability on Line 53 or your refund on Line 54.
If you want to apply some of your refund to next year's tax, enter the amount on Line 55. If you want to donate to about 15 different causes, go ahead and get your giving groove on. Add Lines 55 through 70 on Line 71 then subtract Line 71 from Line 54 to yield your remaining refund on Line 72. Just don't forget to fill in your direct deposit information on Line 73.
All that's left is for you to sign and date your return. If you had a tax pro help you, they will do the same. Oregon offers a free state e-file, but if you choose to mail it in, you'll have to mail your return to different locations based on its outcome.
If you're due a refund mail your return to:
Refund
P.O. Box 14700
Salem OR, 97309-0930
If you owe mail your return to:
Oregon Department of Revenue
P.O. Box 14555
Salem OR, 97309-0940
