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.

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.  You need to calculate the pension exclusion for yourself to enter it in the TaxAct program.

To enter your pension exclusion in the TaxAct program (this option is only available if you qualify based on your previous entries):

1. From within your TaxAct return (Online or Desktop), click the State dropdown, then click Oregon (on smaller devices, click in the top left corner of your screen, then click State, then click OR).
2. Click the Income dropdown, then click Federal Pension Income Subtraction.
3. On the screen titled Oregon - Federal Pension Income Subtraction, click Yes, then click Edit to enter information related to your pension income.

Related Links

• Oregon Income Tax Form OR-40 Instructions
• Penalties and interest for 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 webpage or document at the time it is accessed.