Oregon taxes retirement income for residents and nonresidents of the state. However, if you received income from a federal pension, you may be able to subtract all or some of the pension income from your Oregon return. For instructions on how to calculate your excludable amount, click here.
Where do I enter the subtraction?
To make this manual entry within the program, go to:
- State Section
- Edit (three dots)
- Subtractions from Income
- Federal Pension Income Subtraction
See also Is my military pension/retirement income taxable to Oregon?