Interest and Dividends on State and Local Government Bonds Outside of Oregon.
You must add to Oregon income any interest and dividends you received from state and local governments outside Oregon. You don't pay federal tax on this interest, but you do pay Oregon tax.

You may need to report one or more other additions explained below. Please enter the addition(s) you are reporting in the appropriate space below.

Federal Deduction for Long-term Care Insurance Premiums
Will you claim an Oregon long-term care insurance credit this year? Did you claim a federal deduction for the premiums? If so, you must add to Oregon income the amount of premiums that resulted in a tax benefit on your federal return. Visit the Oregon Website for more information. Or, call the department to order the information circular, Long-Term Care Insurance Premiums Tax Credit.

Federal Election on Interest and Dividends of a Minor Child
Did you report interest or dividends of your minor child on your federal return? If so, you must add to Oregon income the amount that is subject to the special federal tax. Fill in the smaller of line 7 or 8 from federal Form 8814. Add to that any interest or dividends your child received from state and local governments outside Oregon.

Federal Income Tax Refunds
Did you get a federal tax refund in 2003 because you filed an amended federal return for a prior year or because you were audited? If so, you must add the amount of the refund for which you received an Oregon tax benefit in a prior year. You received an Oregon tax benefit if the amount of the refund was claimed as part of your federal tax subtraction on your Oregon return for the prior year.

Gambling Losses Claimed as an Itemized Deduction
Did you claim gambling losses as an itemized deduction on your federal Schedule A? If so, you must add the gambling losses claimed as an itemized deduction that are more than the gambling winnings taxed by Oregon.

Lump-Sum Payment From a Qualified Retirement Plan
Did you complete federal Form 4972 to figure the tax on a qualified lump-sum distribution using the 20 percent capital gain election and/ or the 10-year tax option? If so, part or all of your lump-sum distribution will not be included in your federal adjusted gross income (AGI). The taxable amount of your distribution (federal Form 1099-R, box 2a) that is not included in your federal AGI is taxable to Oregon. Fill in the excluded amount on line 10 of your Oregon Form 40. Attach a copy of federal Form 1099-R to your Oregon return along with your Form(s) W-2 and other Form(s) 1099. For more information, please contact the state of Oregon.

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