Oregon allows a subtraction of federal pension included in federal income based on the number of months of federal service or points earned for retirement before and after October 1, 1991 as follows.
- If all months of federal service occurred or points were earned before October 1, 1991, subtract all of the federal pension reported on the federal return.
- If no months of service or points were earned before October 1, 1991, there is no subtraction.
- If service occurred or points were earned both before and after October 1, 1991, the subtraction is determined by multiplying the total federal pension included in income by the ratio of the months of service or points earned before October 1, 1991 over the total months of service or points earned. (Publication OR-17, Individual Income Tax Guide, includes a worksheet to assist in the calculation, and this worksheet is available in the Oregon individual return in ProWeb.)
To subtract military retirement income from the Oregon individual tax return in TaxSlayer ProWeb, from the Oregon Return menu select:
- Subtractions from Income
- Federal Pension Income Subtraction
- Federal - Amount of pension eligible for the Federal Pension Income Subtraction - If the full retirement subtraction is allowed, enter it as a positive number.
- Federal Pension Income Subtraction Worksheet - If service occurred both before and after October 1, 1991, enter the service dates and any breaks in service to determine the allowable subtraction.
Additional Information:
Oregon DOR: Publication OR-17, Individual Income Tax Guide
While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the underlying state resources and publications.