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2007 OREGON INCOME TAX GUIDE FOR FULL-YEAR RESIDENTS
1. 2007 OREGON INCOME TAX
Full-Year Residents
Forms 40, 40S, Schedule WFC, and instructions
Free File Alliance
See if you qualify for free
electronic filing at www.
oregon.gov/DOR/1000.
Where’s My Refund?
Check the status of
File your taxes
your Oregon income
tax refund at www.
oregonrefund.com.
wherever you are
Join nearly 1 million other Oregonians Get Forms Online
and file your taxes electronically. It’s fast, Download additional
secure, and easy. See page 2. forms and publications
at www.oregon.gov/
DOR/PERTAX.
Oregon Department of Revenue PRSRT STD
955 Center Street NE U.S. POSTAGE
Salem OR 97301-2555 PAID
Oregon Department
of Revenue
2. Getting
started
You can take advantage of e-file in
one of three ways:
1. Ask your tax preparer.
If your tax preparer is an autho-
rized IRS e-file provider, your
E-services
preparer can electronically file
your federal and Oregon returns.
Many Volunteer Income Tax
Assistance (VITA) or Tax Coun-
Electronic filing—fast, secure, and accurate seling for the Elderly (TCE) sites
set up by the IRS are authorized
E-file is the fastest way to file your return and receive your refund.
The speed and accuracy of computers allow electronic returns to IRS e-file providers.
be processed faster than paper returns, greatly reducing errors 2. Off-the-shelf software.
and delays. E-file uses secure technology to ensure the safety of
your personal information once it is transmitted to the IRS and the With a computer, internet access,
Department of Revenue. and the right software, you can file
Oregon participates in the IRS Federal/State E-file program. This your federal and Oregon returns
program allows you to electronically file both your federal and yourself. Ask your local software
Oregon returns at the same time. If you have already filed your fed- retailer about software programs
eral return, you may still electronically file your Oregon return. offering the IRS’s Federal/State
If you haven’t tried e-file yet, give it a try. Join more than 950,000 oth- E-file program. Make sure the
er Oregon taxpayers who electronically file their Oregon returns. program supports Oregon tax
forms. For a list of approved tax
You may be eligible for free e-file software products and vendors,
Several tax preparation software providers offer free online elec- go to our website at www.oregon.
tronic tax filing. For free online tax preparation programs, go to our gov/DOR/ESERV and click on
website at www.oregon.gov/DOR/1000. ”Approved software vendors.”
Direct deposit = faster refunds 3. Internet online service.
If you have a refund, the department can deposit it directly into Go to the internet and check out the
your bank account. This option is quick and secure. See the instruc-
online filing services that offer the
tions on page 37 to direct deposit your refund.
IRS’s Federal/State E-file program.
Electronic payments from your checking or savings account For links to online tax prepara-
You will be able to pay your current year income taxes or 2008 esti- tion programs, go to our website at
mated income taxes directly from your checking or savings account. www.oregon.gov/DOR/1001.
Go to our website for more information.
Credit card payments
You can also pay your current year income taxes or 2008 estimated
income taxes with your Discover, MasterCard, or Visa credit card.
See page 13 for more information.
More information about e-filing
Go to our website at www.oregon.gov/DOR/PERTAX. Click on
“Publications” and download Electronic Filing For Oregon.
2
3. Contents
Electronic services........................................................... 2 Form 40 . ..........................................................................19
Form 40-V, payment voucher......................................... 3 Tax tables ....................................................................... 23
New information ............................................................. 4 Tax rate charts ............................................................... 25
Important reminders . .................................................... 5 Form 40 line instructions . ........................................... 26
General information . ..................................................... 5 Additions................................................................... 26
Residency.................................................................... 5 Subtractions.............................................................. 27
Filing status................................................................ 6
. Deductions................................................................ 30
What form do I use?.................................................. 6
. Oregon tax. ................................................................31
.
Military personnel..................................................... 6 Credits–non-refundable.......................................... 32
What if I need more time to file?............................. 7 Tax payments and refundable credits................... 35
Penalties. ..................................................................... 7
. Penalties and interest.............................................. 36
.
2008 estimated tax..................................................... 8
. Direct deposit ................................................................ 37
Frequently asked questions...................................... 8 Before you file ............................................................... 37
Instructions for Forms 40S and 40 ............................... 9 Avoid processing delays............................................... 38
Name and address..................................................... 9 Tax return mailing addresses . .................................... 38
Exemptions................................................................. 9 Working family child care credit . ............................... 38
Form 40S line instructions . ..........................................11 Schedule WFC instructions .......................................... 39
Standard deduction..................................................11 Schedule WFC, Oregon Working Family Child
Payment options............................................................ 13 Care Credit for Form 40 and Form 40S filers . .......... 41
Charitable checkoffs..................................................... 13
. Taxpayer assistance . .................................................... 44
Form 40S . ....................................................................... 15 Printed information (free) . .................................... 44
Your return and tax owed are due April 15, 2008.
If paying with a check or money order, see page 13 or 36
and use the payment voucher, Form 40-V, below.
See page 13 for other payment options.
Form 40V
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
3
4. These instructions are not a complete statement of laws and
Oregon Department of Revenue rules.
You may need more information. See page 44.
Do I need to file? How long will it take to
You need to file if your gross income is more than the get my refund?
amount shown below for your filing status and age.
Once the department begins processing returns, your
Amounts apply to full-year residents only. return will be processed in the time frames listed. If
Filing status Age If gross income you claim the Working Family Credit (WFC) or your
is more than: return needs additional review for another reason,
Can be claimed on your return will take longer to process. Return pro-
Any $850 * cessing time frames:
another’s return
Under 65 $4,990
Single If you e-file your return 7–12 business days
65 or over $6,190
If you mail your return before April 1
Both under 65 $9,995
Married, joint return One 65 or over $10,995 • With 2-D barcode 2–4 weeks
Both 65 or over $11,995 • Without 2-D barcode 6–8 weeks
Married, Under 65 $4,990 If you mail your return on or after April 1
separate return 65 or over $5,990 • With 2-D barcode 4–7 weeks
Under 65 $6,240 • Without 2-D barcode 8–11 weeks
Head of household
65 or over $7,440
To check if your refund has been issued, go to www.
Under 65 $6,950
Qualifying widow(er) oregonrefund.com.
65 or over $7,950
You will need to enter your Social Security number,
In addition, file a return if: filing status, and the refund you requested on your
— You are required to file a federal return. return (Form 40S, line 41; or Form 40, line 71).
— You had $1 or more of Oregon income tax
withheld from your wages. The system will tell you if we are still processing your
* The larger of $850, or your earned income plus $300, up return or if we have recently finished processing it and
to the standard deduction amount for your filing status. are issuing your refund. Please wait at least the time
indicated above before contacting us.
New information
Federal tax liability subtraction. The federal tax sub- beginning with tax year 2007. There has also been a
traction limit has increased to $5,500 ($2,750 if married change to the subtraction for Oregon National Guard
filing separately). See page 11 or 27. and reserve members for tax years 2001 and forward.
Oregon National Guard and reserve members seeking
Standard deduction amounts. The standard deduc-
a refund have a limited time to amend for prior years.
tion amounts have changed. See page 30 or the back
For more information, download the publication Mili-
of Form 40S.
tary Personnel Filing Information from our website or
Charitable checkoffs. You can now donate all or part contact us to order it.
of your refund to the Oregon Historical Society. You
Exemption credit. Your exemption credit is reduced if
may also donate all or part of your refund to 12 chari-
your federal adjusted gross income is over the thresh-
ties on your return and two additional charities from
old for your filing status. Form 40 filers, see page 32 to
our list. See page 13 for more information.
see if this affects you.
Electronic payments from your checking or savings
Mobile home owners. Were you required to move out
account. You will be able to pay your 2007 income tax-
of a mobile home park because the park closed? If so,
es or 2008 estimated income taxes directly from your
you may qualify for a credit. This is different from the
checking or savings account. There is no fee for this pay-
credit that was available for 2006 and does not require
ment option. Go to our website for more information.
you to move your mobile home. Go to our website to
Military active duty pay. The subtraction for military download our publication Mobile Home Park Closure
active duty pay earned in Oregon increased to $6,000 and Schedule MPC or contact us to order them.
4 New information Have questions? Need forms? See page 44.
5. New biofuel credit. A credit is available for consum- transactions. If you are required to report listed or report-
ers of qualifying biofuels. If you purchase and use able transactions to the IRS on Form 8886, you must check
B99, E85, solid biofuel (pellets), or heat your home with the box “You have Form 8886, REIT, or RIC.” Retain Form
B20+, you may qualify for a credit. See page 34. For 8886 with your Oregon tax records. Do not attach a copy
more information, go to our website or contact us. to your Oregon return. You must also check the box if
Did you participate in a REIT or RIC or have to file federal you participated in a real estate investment trust (REIT)
Form 8886? If so, Oregon now has a mandatory report- or regulated investment company (RIC) as defined in
ing requirement for participation in listed or reportable Senate Bill 39 of the 2007 Oregon Legislature.
Important reminders
Payment options. You can pay your 2007 income tax- sible if your bank rejects your deposit. If it does, we
es, 2008 estimated income taxes, and any prior year will issue a paper check. See page 37.
income tax balances due with your credit card. See Federal law. Oregon is tied to the federal definition of tax-
page 13. able income.* Oregon will automatically adopt any future
federal law changes to the definition of taxable income.
Filing extension. Use Form 40-EXT to get an automatic
six-month extension to file your 2007 Oregon return. * Exception: The domestic production activities deduction
See page 7. from the federal return is not allowed on the Oregon return.
If you claimed this deduction on your federal return, you will
Direct deposit. The Department of Revenue can have an addition on your Oregon tax return. See page 26.
deposit your refund directly into your account at most
Use blue or black ink only. Please use blue or black ball-
banks or other financial institutions. For direct depos- point ink for easier reading and faster processing. Equip-
it, contact your bank to make sure your deposit will be ment used to scan documents and checks cannot read
accepted and to get your correct routing and account gel ink or certain colors, especially red or purple, and
numbers. The Department of Revenue is not respon- using them will delay the processing of your return.
General information
• You are a nonresident if your permanent home was
What income does Oregon tax? outside Oregon all year.
An Oregon resident is taxed on all income, including • You are a part-year resident if you moved into or
income from outside the state. A nonresident of Ore- out of Oregon during 2007. You are not a part-year
gon is taxed only on income from Oregon sources. resident if:
— You temporarily moved out of Oregon, or
Residency — You moved back to Oregon after a temporary
absence.
Am I a resident, a nonresident, or a part-year resident?
The following will help you decide. Special-case Oregon residents. If you are an Oregon
resident and you meet all of the following conditions,
• You are a full-year Oregon resident, even if you live
outside Oregon, if all of the following are true: you are considered a nonresident for tax purposes.
— You think of Oregon as your permanent home, and • You are an Oregon resident who maintained a per-
— Oregon is the center of your financial, social, and manent home outside Oregon the entire year, and
family life, and • You did not keep a home in Oregon during any part
— Oregon is the place you intend to return to when of 2007, and
you are away. • You spent less than 31 days in Oregon during 2007.
• You are still a full-year resident if:
Note: A recreational vehicle (RV) is not considered a
— You temporarily moved out of Oregon, or
permanent home outside of Oregon.
— You moved back to Oregon after a temporary
absence. Oregon residents living abroad. Usually you are
You may also be considered a full-year resident if you considered a nonresident if you qualify for the fed-
spent more than 200 days in Oregon during 2007 or eral earned income exclusion or housing exclusion for
you are a nonresident alien, as defined by federal law. United States residents living abroad.
Or, visit our website at www.oregon.gov/DOR Important reminders 5
6. • You used taxable scholarship income for housing
Filing status expenses and you qualify for the Oregon subtrac-
tion, or
Generally, you must use the same filing status for your
• You paid or should have paid estimated tax during
Oregon and federal returns.
the year, or
Exceptions for married persons when each spouse has • You have adjustments to income on your federal tax
a different residency status: return, such as alimony or IRA deductions, or
• You have Oregon additions or subtractions other
• Full-year resident and part-year resident. You may file than the federal tax subtraction (the most common
separate Oregon returns. If you file separate returns ones are listed on the return), or
for Oregon, you must use the married filing separate- • You are an Oregon resident in the military, living in
ly status. The full-year resident will file Form 40, and Oregon, claiming the subtraction for military active
the part-year resident will file Form 40P. If you choose duty pay, or
to file a joint return for Oregon, use Form 40P. • You itemize deductions on your Oregon return, or
• Full-year resident and nonresident. You may file sep- • You are married filing separately and your spouse is
arate Oregon returns. If you file separate returns for itemizing deductions, or
Oregon, you must use the married filing separately • You are a nonresident alien, as defined by federal
status. The full-year resident will file Form 40, and law, who lived in Oregon the entire year, or
the nonresident will file Form 40N. If you choose to • You are claiming more than two “Other credits”, or
file a joint return for Oregon, use Form 40N. • You owe penalty or interest, or
• You want to apply all or part of your refund to your
• Part-year resident and nonresident. You may file sep- 2008 estimated tax.
arate Oregon returns. If you file separate returns for
Use Form 40P if any ONE of the following is true:
Oregon, you must use the married filing separately
status. The part-year resident will file Form 40P, and • You are a part-year resident, or
the nonresident will file Form 40N. If you choose to • You are filing jointly and one of you is a full-year
file a joint return for Oregon, use Form 40N. Oregon resident and the other is a part-year resident,
or
Need more information? Download the publica-
• You are filing jointly and both of you are part-year
tion Married Persons Filing Separate Returns from our Oregon residents, or
website, or contact us to order it. • You qualified as an Oregon resident living abroad
for part of the year.
What form do I use? Use Form 40N if any ONE of the following is true:
Use Form 40S if ALL of the following are true: • You are a nonresident, or
• You are a special-case Oregon resident (see above),
• You are a full-year Oregon resident, and or
• Your income is only from wages, unemployment, • You are filing jointly and one (or both) of you is a
taxable interest, ordinary dividends, fellowship nonresident, or
grants, and taxable scholarships not used to pay for • You meet the military personnel nonresident require-
housing, and ments explained below, or
• You claim the standard deduction on your return, • You qualified as an Oregon resident living abroad
and for the entire year.
• Your Oregon taxable income is less than $100,000,
and Forms 40P and 40N are included in the Part-Year Resi-
• You do not have pension or annuity income or IRA dent and Nonresident booklet. Download the booklet
distributions, and from our website, or contact us to order it.
• You are not claiming more than two “Other credits”,
and Military personnel
• You do not owe penalty or interest, and
• You did not pay estimated tax during the year. Residents stationed in Oregon. If you are an Oregon
resident stationed in Oregon, file Form 40. See “Need
Use Form 40 if BOTH of the following are true: more information?” on page 7 for information about
• You are a full-year Oregon resident, and the military active duty pay subtraction.
• You cannot use Form 40S. Residents stationed outside Oregon. If you meet the
requirements for special-case Oregon residents or Ore-
Use Form 40 if any ONE of the following is true:
gon residents living abroad on page 5, file Form 40N
• You received Social Security, pension, or annuity from the Part-Year Resident and Nonresident booklet. File
income, or Form 40 if you don’t meet the listed requirements.
6 General information Have questions? Need forms? See page 44.
7. Nonresidents stationed in Oregon. Oregon does not If you need to complete Form 40-EXT, download it
tax your military pay while you are stationed in Ore- from our website, or contact us to order it.
gon. File Form 40N if you or your spouse had income
from other Oregon sources, or to claim a refund of An extension does not mean more time to pay!
Oregon tax withheld from your military pay. You must pay all tax you expect to owe when you file
Need more information? Download the publication your extension. If you do not pay all the tax due with
Military Personnel Filing Information from our website, your extension, you will owe interest on the unpaid
or contact us to order it. balance after April 15, 2008, until the date of your pay-
ment. The 2008 interest rate is 9 percent per year. If the
Filing for a deceased person tax is not paid within 60 days of the date of our billing
notice, the interest rate increases to 13 percent per year.
You must file a final personal income tax return for a
You may also owe a late-payment penalty. If you can-
person who died during the calendar year if a return
would normally be required. See “Do I need to file?” on not pay all of the tax you expect to owe, pay what you
page 4. If a return is filed, please check the “deceased” can. Call us as soon as possible to set up a payment
box on the return. If you’re responsible for the dece- plan to reduce penalties and interest.
dent’s finances, sign the return “as personal represen-
Were you stationed in a designated combat zone?
tative” and have the spouse sign if a joint return. If
there is no personal representative for a joint return, If you were stationed in a designated combat zone
only the surviving spouse needs to sign. For more and received additional time to file your 2007 federal
information, download Survivor’s Information from our
return and pay your 2007 tax, Oregon allows the same
website or contact us to order it.
additional time to file and pay. Write “Combat zone”
Are you filing a return and claiming a refund for some- in blue or black ink at the top left corner of your
one who is now deceased and there is no court-ap- return.
pointed or certified personal representative? If so, file
Form 243, Claim to Refund Due a Deceased Person, with
the return. This allows us to issue the refund check in Penalties
your name. Download the form from our website, or
contact us to order it. You will owe a 5 percent late-payment penalty on any
2007 tax not paid by April 15, 2008. See page 36.
When should I file my return? If you file more than three months after the due date or
extension due date, a 20 percent late-filing penalty will
The filing deadline for calendar year 2007 is April 15,
be added; so, you will owe a total penalty of 25 percent
2008. If you cannot pay all or any of your tax by the
due date, file your return anyway to avoid a late-filing of any tax not paid.
penalty. Exception: For more information about penalty excep-
Returns for other tax periods are due by the 15th day tions, go to our website and view Computing Interest
of the fourth month after the close of your tax year. and Penalties on Tax You Owe.
A 100 percent penalty is charged if you do not file a
What if I need more time to file? return for three consecutive years by the due date of
the third year, including extensions. The penalty is 100
If you need more time to file, request an automatic six-
month extension. Complete an Oregon extension form, percent of the unpaid tax for each of the three years.
Form 40-EXT, if:
• You’re making a tax payment to Oregon and you Interest on underpayment
can’t file your Oregon return by April 15, 2008, or of estimated tax
• You are filing an extension for Oregon only.
Extensions must be filed by the due date of the return, You may owe interest for underpaying your estimated
April 15, 2008. tax if:
If you received a federal six-month extension and are • You owe $1,000 or more on your return after credits
expecting an Oregon refund, do not use Form 40-EXT. and withholding, or
Oregon will allow the same extension. Be sure to check • You paid less than 90 percent of the tax due on each
box 7b on your Oregon return. Don’t attach a copy of estimated tax payment due date.
your federal extension to your Oregon return. Keep a
copy of your federal extension with your records. See the instructions for Form 40, line 51, on page 36.
Or, visit our website at www.oregon.gov/DOR General information 7
8. 2008 estimated tax Frequently asked questions
Estimated tax is the amount of tax you expect to owe Is my tax return private information?
after credits and Oregon tax withheld when you file Yes. All information provided on the return is confi-
your 2008 Oregon individual income tax return. dential. Any Oregon Department of Revenue employee
who gives out confidential information without your
Oregon estimated tax laws are not the same as federal
permission may be convicted of a Class C felony.
estimated tax laws. Use Oregon instructions to determine
if you need to make estimated tax payments for 2008. I’m moving. Will my refund check be forwarded to me?
Do I need to make estimated payments? Yes. If you move after you file your return, give us
your new address. Download a Change of Address
In most cases, people who expect to owe $1,000 or more form from our website or contact us. Remember to file
on their 2008 Oregon income tax return after credits a change of address form with your local post office.
and withholding must make estimated payments. You
What tax records do I need to keep?
may need to make estimated payments if:
You need to keep:
• You are self-employed and do not have Oregon tax
withheld from your income. • A complete copy of your federal and state returns,
even if you use a tax practitioner or file electronically.
• You receive Oregon Lottery single ticket winnings
• All original receipts, cancelled checks, statements, and
of less than $5,000. (Note: Single ticket winnings of
other records you used to prepare your return. Save
$5,000 or more are subject to Oregon withholding.) these records for at least three years from the due
• You receive income such as pensions, interest, or date of the return or three years from the date you
dividends, and Oregon tax is not withheld. file your return, whichever is later. If your return is
reviewed during processing or audited, the law says
• You’re a wage earner and expect to owe tax of
you must show proof of your income and expenses.
$1,000 or more on your 2008 return. You may want
to increase the amount your employer withholds • All records from the sale, purchase, or exchange of
property and investments. Keep these records for at
from your Oregon wages. Download the publication
least three years after you report the gain or loss on
Oregon Income Tax Withholding from our website, or
the property or investment.
contact us to order it.
For more information, download the publication
When do I pay?
Record-Keeping Requirements from our website, or con-
Estimated tax due dates for 2008 taxes are April 15, 2008;* tact us to order it.
June 16, 2008; September 15, 2008; and January 15, 2009. What if I need to change my Oregon return after filing?
If paying with a check or money order, send your pay- File an amended return. Use Form 40 or Form 40S to
ment with Form 40-ESV, Oregon Estimated Income Tax change (amend) your full-year resident return. Check
Payment Voucher. Download the publication Estimated the amended return box in the upper left corner of the
Income Tax from our website, or contact us to order it. form. You must also complete and attach the Oregon
If you are paying by credit card or electronic payment Amended Schedule to your amended return. Download
the schedule and instructions from our website or con-
from your checking or savings account, see page 13.
tact us to order it.
* Please send your 2008 estimated tax payment and Ore-
Generally, you’re allowed three years from the due
gon Form 40-ESV in a separate envelope from your 2007 date of the return to file an amended return to claim a
Oregon income tax return. This will help us credit your refund. To amend a prior year return, use Form 40 or
payment more efficiently. Form 40S for that year and the Oregon Amended Sched-
ule. To order prior year tax booklets or for assistance,
please contact us.
What if I’m self-employed?
What if I’m audited by the IRS or another state?
If you’re self-employed and do business in Multnomah,
If the IRS or another state makes changes that increase
Clackamas, or Washington counties, you may need
your Oregon taxable income, file an amended return
to file Form TM, TriMet Self-Employment Tax Return. If
to report and pay additional tax. If the changes reduce
you’re self-employed and do business in Lane County, Oregon taxable income, you have two years from the
you may need to file Form LTD, Lane Transit District Self- date of the audit report to file an amended return to
Employment Tax Return. Go to our website to download claim a refund. Include a copy of the audit report with
the forms, or contact us to order either form. your amended return.
8 General information Have questions? Need forms? See page 44.
9. General Instructions for Forms 40S & 40
Step 1: Fill out your federal form. Date of birth. Enter the month, day, and year you were
born. For example, “09/22/1976.”
Complete your federal return first. Use the informa-
tion from your federal return to complete your Oregon
return. Check the boxes
Step 2: Select the appropriate form. Filing status
To decide which form to use, see page 6. Not everyone Check the box next to your filing status.
qualifies to file Form 40S (short form). 1 – 5
Use the same filing status you used on
Form 40 filers. You must attach a copy (front and back) your federal return. Exception: If you and your spouse
of your federal Form 1040, 1040A, 1040EZ, 1040NR, or don’t have the same residency status, you may file sep-
1040NR-EZ to your Oregon Form 40. Do not attach any arate returns for Oregon as married filing separately
federal schedules. We may ask you for copies of sched- even if you filed your federal return as married filing
ules or additional information later. jointly. For more information, see page 6.
See “What tax records do I need to keep?” on page 8. If you are married filing separately, fill in your
spouse’s first name, last name (first four letters only),
Step 3: Fill out the Oregon form. and Social Security number next to box 3. Do not fill in
your spouse’s name or Social Security number in the
heading of the return.
Fiscal year filers only
If you are filing as head of household, fill in the name
Fiscal year filers must use Form 40. Write the ending of a person who qualifies you for head of household
date of your fiscal year in the space provided. Write filing status next to box 4. Please enter only one name.
“Fiscal year” in blue or black ink at the top left cor-
ner of your return. Exemptions
Yourself and spouse. Check “Yourself”
6a & 6b
Name and address and other boxes that apply. If someone
else can claim you as a dependent (even if they did
Type or clearly print your name, Social Security num- not), do not check “Yourself;” instead enter ‑0‑ in the
ber, date of birth, complete mailing address, and day- total box on 6a unless you have a severe disability.
time telephone number on your return. If you are mar-
Severely disabled. Did you have a severe disability
ried filing separately, do not fill in your spouse’s name
at the end of 2007? If so, you may claim an additional
and SSN here, enter it on line 3 instead. If the taxpayer
exemption credit. This credit is different from the dis-
died in 2007 or 2008, please check the “deceased” box
abled child credit. You may qualify for and claim the
next to their name.
severely disabled exemption even if someone else can
Social Security number (SSN). The request for your SSN claim you as a dependent. You are considered to have a
is authorized by Section 405, Title 42, of the United States severe disability if any of the following apply:
Code. You must provide this information. It will be used
• You permanently lost the use of one or both feet, or
to establish your identity for tax purposes only.
• You permanently lost the use of both hands, or
Individual Taxpayer Identification Number (ITIN). If • You’re permanently blind, or
the IRS issued you an ITIN because you don’t have • You have a permanent condition that, without special
a Social Security number, enter your ITIN wherever equipment or outside help, limits your ability to:
your SSN is requested. — Earn a living, or
— Maintain a household, or
If you don’t have an ITIN, you need to request one
— Transport yourself.
from the IRS. In this case, write “Applied for” wher-
ever your SSN is requested, or leave blank, and file Special equipment doesn’t include items such as eye-
your return by April 15, 2008. Do not attach your ITIN glasses, contact lenses, ordinary crutches, or hearing
application (federal Form W-7) to your Oregon tax aids. Deafness alone does not qualify.
return. For a copy of Form W‑7, go to the IRS website at
You don’t qualify for this exemption if:
www.irs.gov, or call the IRS toll-free at 1-800-829-1040.
When the IRS issues you an ITIN, send a copy of your • You have a temporary disability from an injury or
ITIN letter to the Oregon Department of Revenue. illness and are expected to recover, or
Or, visit our website at www.oregon.gov/DOR General instructions 9
10. • Your condition keeps you from doing your former You must get a statement of eligibility that confirms
work but does not prevent you from doing other one of the disabilities listed above and a cover sheet
kinds of work without special equipment. from one of the following:
If you have a permanent severe disability, your physi- • The child’s Individualized Education Program (IEP),
cian must write a letter describing it. Keep the letter with or
your permanent records in case we request a copy. • The child’s Individualized Family Service Plan (IFSP).
If you qualify, check the “severely disabled” exemp- Keep the statement and cover sheet with your per-
tion box on line 6a. If your spouse qualifies, check the manent records. Write your disabled child’s name on
“severely disabled” exemption box on line 6b. You and line 6d, “Disabled children only.” If the first names
your spouse may also qualify for the loss of use of of your disabled children do not fit on the line, write
limbs credit. See instructions on page 12 or 34. the names on a statement instead. Number the state-
ment and attach it to your return. Write “STM” and the
All dependents. Enter the number of your
6c statement number on line 6d. Also be sure to include
dependents in box 6c. Write their first names the same child’s name on line 6c for “All dependents.”
on the line. In most cases, you must claim the same
Age 65 or older, or blind. Check the boxes on line
dependents claimed on your federal return. If the first 7a
7a if you or your spouse were age 65 or older or
names of your dependents do not fit on the line, write
were blind on December 31, 2007. You are entitled to a
the names on a statement instead. Number the state-
larger standard deduction on Form 40S, line 10; or Form
ment and attach it to your return. Write “STM” and the
40, line 26. If you or your spouse are permanently blind,
statement number on line 6c.
you may also qualify for the severely disabled exemption
Children with a disability. You may be entitled credit. For box 6a and 6b instructions, see page 9.
6d
to an additional personal exemption for your Extension. If you filed for an extension, check
dependent child who has a qualifying disability. To 7b
box 7b. For more information, see page 7.
qualify, all of the following must be true:
Federal Form 8886 , REIT, or RIC. Check box 7c if
• Your child qualified as your dependent for 2007, and 7c
you filed federal Form 8886, Reportable Transac-
• Your child was eligible for “early intervention servic- tion Disclosure Statement or participated in a real estate
es” or received special education as defined by the investment trust (REIT) or regulated investment com-
State Board of Education of the state where the child pany (RIC).
attends school (learning disabilities or communica-
Form Dependent. If someone else, such as
tion disorders alone do not qualify), and
40S 7d dent (even if they did not), you can’t
your parents, can claim you as a depen-
• Your child was considered to have a disability as of
December 31, 2007, under the federal Individuals with claim an exemption for yourself. Check box 7d on Form
Disabilities Education Act. Eligible disabilities include: 40S. Also, enter ‑0‑ in the total box on line 6a unless
— Autism. you are severely disabled.
— Deaf-blind.
Form Oregon Form 24. Did you file federal
— Hearing impairment.
40 7d
Form 8824 because you are deferring gain
— Mental retardation. on exchanged property? If so, check box
— Multiple disabilities. 7d on Form 40. Also, complete and attach Form 24, Oregon
— Orthopedic impairment. Like-Kind Exchanges/Involuntary Conversions. Download
— Other health impairment. the form from our website, or contact us to order it.
— Serious emotional disturbance.
For Form 40S line instructions, go to page 11.
— Traumatic brain injury.
— Visual impairment. For Form 40 line instructions, go to page 26.
10 General instructions Have questions? Need forms? See page 44.
11. Form 40S line instructions
The following instructions are for lines not fully 2. Enter your tax on qualified retire- 2.
explained on the form. For general Form 40S instruc- ment plans from Form 1040, line
tions, see page 9. 60; or Form 1040NR, line 55; any
recapture taxes you included on
Amended return. If you are amending your 2007
the dotted line of Form 1040, line
return, check the box in the upper left corner of Form
63; or Form 1040NR, line 58; and
40S and attach the Oregon Amended Schedule.
the amount on Form 1040NR, line
Do not fill in cents. You must round off cents to the 53.
nearest dollar. For example, $99.49 becomes $99.00 and 3. Add lines 1 and 2. 3.
$99.50 becomes $100.00.
Income. Fill in your income amounts in the 4. Enter $5,500 ($2,750 if married fil- 4.
8 ing separately).
appropriate boxes (8a, 8b, and 8c) and enter the
total on line 8. 5. Enter the smaller of line 3 or line 4 5.
here and on Form 40S, line 9.
8a. Wages. Fill in all pay for work. This amount is usu-
ally shown on Form W-2. Pay for work includes Is the IRS figuring your federal tax for you? Do not
wages, salaries, tips, and commissions, plus your write an amount on line 9. You will not be able to fin-
taxable scholarships and fellowship grants. If you ish your Oregon return without your federal tax liabil-
paid for housing with scholarship funds, you ity. Complete lines 14 through 17 and lines 19 through
must file Form 40 to claim the subtraction. 23. Attach a copy of your federal Form 1040, 1040A,
1040EZ, 1040NR, or 1040NR-EZ to your Oregon return.
8b. Unemployment. Fill in all unemployment com- Write “Calculate federal tax” in blue or black ink at the
pensation. This is the amount on federal Form top left corner of your return. We will use the informa-
1040, line 19; Form 1040A, line 13; Form 1040EZ, tion on your federal return to determine your federal
line 3; or Form 1040NR, line 20. This is also tax liability, and finish your Oregon return for you. Be
shown on Form 1099-G. sure to attach Form(s) W-2 and any Form(s) 1099 show-
ing Oregon tax withheld to the lower front of your
8c. Interest and dividends. Add your total interest
return. Go to the signature block section on page 37.
and dividends and enter the result on line 8c.
Your total interest includes: Are you amending your 2007 return? See the Oregon
—
Any interest received or credited to your Amended Schedule instructions to figure your subtrac-
account that you can withdraw. tion for federal tax liability.
— Any interest received on tax refunds.
Standard deduction. See the back of Form 40S
You can’t use Form 40S if:
10
for instructions unless you can be claimed as
— You have interest from the U.S. government, a dependent on another person’s return. If you are a
such as savings bond interest, or dependent, use the following worksheet to figure your
— You received nontaxable distributions or standard deduction unless you are married. If you are a
capital gain distributions. dependent and married, please contact us.
Use Form 40 instead. Standard deduction worksheet for single dependents
8. Total income. Add the amounts shown in boxes 1. Enter your earned income. (See 1.
8a, 8b, and 8c. definition below.)
2. Additional $300. 2. 300
2007 federal tax liability. Carefully follow the
9 3. Add lines 1 and 2. 3.
instructions below. Don’t confuse your federal
tax liability on your federal return with the federal tax 4. Minimum standard deduction. 4. 850
withheld on your Form(s) W-2. They are not the same.
5. Enter the larger of line 3 or line 4. 5.
You may deduct your total federal income tax liability
6. Basic standard deduction for 6. 1,825
after credits, up to $5,500. Don’t fill in less than ‑0‑ or
single.
more than $5,500 ($2,750 if married filing separately).
7. Enter the smaller of line 5 or line 6. 7.
1. Enter your federal tax liability 1.
from Form 1040, line 57; Form 8. If you’re under age 65, enter ‑0‑. If 8.
1040A, line 35; Form 1040EZ, line you’re age 65 or older, enter $1,200.
10; Form 1040NR, line 52; or Form 9. If you’re not blind, enter ‑0‑. If you 9.
1040NR-EZ, line 15. are blind, enter $1,200.
Or, visit our website at www.oregon.gov/DOR Form 40S line instructions 11
12. 10. Add lines 7, 8, and 9. Enter the total 10. You can carry forward any excess credit over the next five
here and on Form 40S, line 10; or years. If the excess isn’t used within five years, it’s lost.
Form 40, line 26. This is your stan-
Other credits. You may qualify for other credits
dard deduction. 16
listed here. These are identified by the numeric
Earned income is salaries, wages, tips, professional fees, code shown. Enter the code on line 16a and the amount
or other amounts received as pay for work you actually on line 16b. For example, if you’re claiming a $50 politi-
performed, and any part of a scholarship or fellowship cal contribution credit, enter “723” on line 16a and
grant that you must include in your gross income. “$50” on line 16b. If you’re claiming more than two
“Other credits,” use Form 40 instead. Add the amounts
Oregon taxable income. Caution: Is this amount
12 on lines 16b and 16d and enter the total on line 16.
$100,000 or more? If yes, you must use Form 40.
• Child and dependent care carryforward [code 704].
Tax from tables or rate charts. Figure the tax on
13 Fill in the amount of unused credit from prior year.
your Oregon taxable income, line 12. See pages
See page 34.
23 through 25. For examples, see page 31.
• Elderly or the disabled [code 709]. You get an Ore-
Exemption credit. If your income on Form 40S,
14 gon credit only if you qualify for the federal credit.
line 12 is more than $100,000 you must file Form See page 33.
40 instead. You may need to use the exemption credit • Income taxes paid to another state [code 733]. You
worksheet on page 32 to determine your allowable may be eligible for this credit if you paid income tax
exemption credit amount. to another state. See page 33.
Child and dependent care credit. You’re allowed • Loss of use of limbs [code 717]. If you have a perma-
15 nent and complete loss of the use of two limbs, you
an Oregon credit only if you qualify for the fed-
eral child and dependent care credit. You may be able may take a $50 tax credit. See page 34.
to claim the Oregon credit even if you cannot use all of • Political contribution [code 723]. You may qualify
your federal credit. for a credit for political contributions. See page 33.
• Residential energy [code 729]. You may qualify for
Use the following worksheet: a credit if you purchased certain energy-efficient
1. Enter the amount from federal 1. items. See page 35.
Form 2441, line 6; or Form 1040A,
Oregon income tax withheld. Fill in the total
Schedule 2, line 6. Do not enter 19
more than $3,000 for one qualify- Oregon income tax withheld from your wages
ing child or $6,000 for two or more and other income. That is the amount shown on your
qualifying children. Form(s) W-2 in box 17, or on Form 1099. Do not use the
2. Enter the decimal amount from the 2. FICA (Social Security) tax withheld. Do not use tax
following table. withheld from your wages by other states. Staple a
readable copy of your Form(s) W-2 from each job and
If your federal taxable Your
income from Form 1040, decimal any Form(s) 1099 showing Oregon income tax with-
line 43; or Form 1040A, amount held to the lower front of your return.
line 27 is: is: If you don’t have a Form W-2 or 1099, you must provide oth-
Over— But not over— er proof of any Oregon tax withheld. Proof may include a
$ —— $ 5,000 .30 final paycheck stub or a letter from your employer. If you
5,000 10,000 .15 file before February 1, 2008, we can accept only Form(s)
10,000 15,000 .08 W-2 or 1099 as proof.
15,000 25,000 .06
25,000 35,000 .05 If you paid estimated tax for 2007, you must use Form
35,000 45,000 .04 40.
45,000 —— .00 If you have tax to pay this year, you may want to
3. Multiply the amount on line 1 by 3. increase the amount your employer withholds from
the decimal on line 2. Enter the your 2008 Oregon wages. Download the publication
result here and on Form 40S, line Oregon Income Tax Withholding from our website, or
15. contact us to order it.
Note: Did you pay 2006 child care expenses in 2007?
Earned income credit. You are allowed an Ore-
If so, you may be able to use that amount to increase 20
gon earned income credit only if you qualify for
your 2007 Oregon child and dependent care credit. For
the same credit on your federal return. Your Oregon
more information, please contact us.
credit is 5 percent of your federal credit. For example,
Carryover. Your total 2007 child and dependent care cred- if your federal credit is $400, your Oregon credit is $20
it can’t be more than your 2007 tax liability for Oregon. ($400 × .05).
12 Form 40S credits Have questions? Need forms? See page 44.
13. Use the following formula to compute your credit: Credit card service provider:
1. Enter your federal earned income 1. • Official Payments Corporation
credit from Form 1040, line 66a; Call 1-866-720-1327, or go to their website at
Form 1040A, line 40a; or Form www.officialpayments.com.
1040EZ, line 8a.
2. Multiply the amount on line 1 by 2. For additional information on credit card payments and
5 percent (.05). Enter the result here service providers, go to our website, or contact us.
and on Form 40S, line 20.
Soon you will be able to make an electronic payment
The Oregon earned income credit is refundable. If the from your checking or savings account for your cur-
credit is more than your tax liability, the difference
rent-year balance due, 2008 estimated tax payments, or
will be refunded to you.
prior year taxes. There is no fee to use this method. This
Working family child care credit. This credit is
21 option will only be available through our website.
available to low-income working families with
qualifying child care expenses for a qualifying child Payment plan. If you cannot pay in full now, we will
under age 13 (or a child who qualifies for the addition- work with you to set up a payment plan. For more
al exemption credit for a child with a disability). The information, please contact us.
working family child care credit is refundable. If the Underpayment of estimated tax. If you owe $1,000 or
credit is more than your tax liability, the difference will more, you may owe interest on underpayment of esti-
be refunded to you. To see if you qualify, go to page 38. mated tax. If so, you must file Form 40. See page 36.
Mobile home park closure credit. Enter the amount
22 Charitable donations. If you don’t have a refund but
from Schedule MPC, line 5. Attach Schedule MPC
want to contribute to a charity listed below, mail your
to your return. For more information download the pub-
lication from our website, or contact us to order it. donation to the charity’s address listed on our website.
Please do not mail your donation to the Department
Refund. If line 23 is more than line 18, you have
24 of Revenue.
a refund. Enter your refund amount on line 24.
Go to the next column for information on charitable
checkoffs or go to page 14 for line 41 instructions. Charitable checkoffs
Tax to pay. If line 18 is more than line 23, you
25 You can donate all or part of your refund shown on line
have tax to pay. You may pay only with a check, 24 to the charities listed below. Donations will reduce
money order, or credit card. If the amount is less than your refund. You may donate to any or all of the chari-
$2, no payment is required.
ties on lines 26–37. You may also donate to two of the
Check or money order charities listed under the instructions for lines 38 and
39. Or, you can mail your donations to the addresses
• Make your check or money order payable to “Ore-
gon Department of Revenue.” listed on our website.
• Write your daytime telephone number and “2007 Form 40S 26 Oregon Nongame Wildlife. Your dona-
Oregon Form 40S” on your check. tion will fund the protection of non-
• Please use blue or black ballpoint ink. Do not use red Form 40 56
game wildlife and its habitat.
or purple ink or gel pens.
27 Child Abuse Prevention. Your donation
• Do not send cash or a postdated check. Form 40S
• Staple your payment and the Form 40-V payment will fund programs through the Chil-
Form 40 57
voucher (below) to your return on top of the Form(s) dren’s Trust Fund to help prevent child
W-2 and Form(s) 1099. abuse and neglect.
28 Alzheimer’s Disease Research. Your
Credit card or electronic payment Form 40S
from your checking or savings account donation will fund research of Alzheim-
Form 40 58
er’s and related dementias.
You can pay with your Discover, MasterCard, or Visa
credit card. Contact the service provider supporting Form 40S29 Stop Domestic and Sexual Violence.
Oregon’s program. The provider will charge you a con- Your donation will fund programs
Form 40 59
venience fee based on the amount of your tax payment. through the Oregon Coalition Against
The service provider will tell you what the fee is during Domestic and Sexual Violence.
the transaction; you will have the option to continue or
cancel the transaction before entering your credit card
information. If you complete the credit card transaction,
you will receive a confirmation number. Please keep
this confirmation number as proof of payment.
Form 40S
Form 40 60
30 AIDS/HIV Research, Education, and Ser-
vices. Your donation will fund AIDS/
HIV research, education, and services
by the Living With HIV Fund.
Or, visit our website at www.oregon.gov/DOR Charitable checkoffs 13
14.
Form 40S 31 Oregon Military Financial Emergency Doernbecher Children’s Hospital Foundation [code 9].
Assistance. Your donation will fund Your donation will fund a critical expansion of the
Form 40 61
hardship grants and loans to Oregon cancer treatment facilities at Doernbecher.
National Guard members and their families.
The Oregon Humane Society [code 10]. Your donation
Form 40S
Form 40 62
32 Habitat for Humanity. Your donation
will help Habitat for Humanity build
simple, decent, and affordable housing
for low-income families.
will help save pets’ lives through rescue, sheltering, adop-
tion, education, cruelty investigation, and advocacy.
The Salvation Army—Oregon [code 11]. Your donation
to the Salvation Army ensures help for the neediest
Form 40S 33 Oregon Head Start Association. Your
donation will help Head Start provide children and their families throughout Oregon.
Form 40 63
services to the lowest-income, highest- The Oregon Veterans’ Home [code 12]. Your donation
need children and families.
will improve the quality of life for veterans receiving
34 American Diabetes Association. Your
Form 40S nursing care at the Oregon Veterans’ Home.
donation will help continue diabetes
Form 40 64 research and advocacy programs in Planned Parenthood of Oregon [code 13]. Your dona-
Oregon. tion will fund family planning services and reproduc-
tive health education programs.
Form 40S
Form 40
bilitation.
35 Oregon Coast Aquarium. Your donation
will help fund educational programs,
65 conservation efforts, and animal reha-
Oregon Lions Sight & Hearing Foundation [code 14].
Your donation will fund sight and hearing assistance,
and provide diabetes awareness for Oregonians.
Form 40S
Form 40 66
36 SMART. Your donation will help fund
the Start Making A Reader Today early
literacy program for Oregon’s most vul-
nerable children.
Shriners Hospitals for Children—Portland [code 15].
Your donation will help provide braces and artificial
limbs for Oregon’s children.
Special Olympics Oregon [code 16]. Your donation
Form 40S 37 SOLV. Your donation will help fund will help provide life-changing services to thousands
thousands of projects to clean up and
Form 40 67 of Oregonians with intellectual disabilities.
restore beaches, forests, rivers, and
neighborhoods across Oregon. Susan G. Komen for the Cure, Oregon & SW Washington
Affiliate [code 17]. Your donation funds critical breast
40S 38 & 39 Other charity. You may donate all or part
of your refund to two of the charities list- cancer research, education, screening and treatment.
40 68 & 69
ed below. Enter the charity code on Form
Oregon Historical Society [code 18]. Your donation helps
40S, in box 38a or 39a; or on Form 40, in box 68a or 69a.
us collect and preserve materials of historical character
Enter only one code in each box. Write the amount you
want to donate next to the code on Form 40S, line 38b or for studying and understanding Oregon history.
39b; or Form 40, line 68b or 69b. If you want to donate to
Net refund. You must reduce your refund by any
more than two charities listed below, you can mail your 41
donations directly to the charities at the addresses listed donations made on lines 26–39. The department
on our website. cannot issue a refund if your return is filed more than
three years after the due date of the return.
St. Vincent de Paul Society of Oregon [code 7]. Your
donation will help provide services leading to self- Direct deposit. See page 37.
sufficiency for low-income Oregonians.
42
The Nature Conservancy [code 8]. Your donation will
help purchase and restore critical habitats for Oregon’s To finish your return, go to the signature
at-risk plants, fish, and wildlife. block section on page 37.
14 Charitable checkoffs Have questions? Need forms? See page 44.
15. [Form 40S (front)]
Form 40S
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
16. [Form 40S (back)]
Form 40S
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
17. [Form 40S (front)]
Form 40S
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
18. [Form 40S (back)]
Form 40S
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
19. [Form 40S (front)]
Form 40
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
20. [Form 40S (back)]
Form 40
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
21. [Form 40S (front)]
Form 40
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
22. [Form 40S (back)]
Form 40
For Oregon forms, please visit our website at
www.oregon.gov/DOR
and click on “Tax Forms”
