×
tax forms found in
Tax Form Code
Tax Form Name

Oregon Free Printable 2023 Publication OR-40-FY, Oregon Income Tax Full-Year Resident Forms and Instructions, 150-101-040-1 for 2024 Oregon Individual Income Tax Return Instructions for Full-year Residents

Tax season is open, and returns are due on April 16th! Save by eFiling early with TurboTax start now

It appears you don't have a PDF plugin for this browser. Please use the link below to download 2023-oregon-form-or-40-instructions.pdf, and you can print it directly from your computer.

Individual Income Tax Return Instructions for Full-year Residents
2023 Publication OR-40-FY, Oregon Income Tax Full-Year Resident Forms and Instructions, 150-101-040-1

2023 Oregon Income Tax Form OR-40 Instructions Full-year Resident Check out our online services Revenue Online is a secure online portal that provides access to your tax account at any time. You can: • Check the status of your refund. • View and print letters from us. • Make payments or schedule future payments. • Securely communicate with us. • Update your information. • Check balances and view your account history. • File an appeal. Visit ­­www.oregon.gov/dor and click on “Revenue Online” to sign up. • April 15, 2024 is the due date for filing your return and paying your tax due. • File electronically—it’s fast, easy, and secure. See “Electronic filing.” • Find out if you qualify for the new Oregon Kids Credit or the earned income credit. See “Tax payments and refundable credits.” • Find out if you qualify for the working family household and dependent care credit. See Schedule OR-WFHDC Instructions for details. • Are you a veteran? Find out about veterans’ benefits at ­­www.oregon.gov/odva. • These instructions aren’t a complete statement of laws or Oregon Department of Revenue rules. If you need more information, see Publication OR-17 or contact us. ­­www.oregon.gov/dor 150-101-040-1 (Rev. 12-06-23) Contents Electronic filing.................................................................. 3 Federal tax law................................................................... 3 New information................................................................ 4 Important reminders......................................................... 4 General information.......................................................... 5 Do I need to file an Oregon return?........................... 5 Residency........................................................................ 5 What form do I use?...................................................... 6 Military personnel........................................................ 6 What if I need more time to file?................................ 6 Penalties.......................................................................... 7 2024 estimated tax......................................................... 7 What if I need to change my return after filing?..... 7 General instructions for Form OR-40.............................. 9 Check the boxes............................................................. 9 Name and address........................................................ 9 Filing status...................................................................10 Exemptions....................................................................10 Form OR-40 line instructions......................................... 13 Additions...................................................................... 13 Subtractions.................................................................. 13 Deductions................................................................... 15 Oregon tax.....................................................................16 Credits—nonrefundable.............................................16 Tax payments............................................................... 17 Refundable credits...................................................... 17 Penalties and interest.................................................. 22 Amount due................................................................. 23 Payment options.......................................................... 24 Refund.......................................................................... 24 Direct deposit............................................................... 25 Before you file.............................................................. 26 Avoid processing delays............................................. 27 Tax return mailing addresses.................................... 27 Tax tables.......................................................................... 28 Tax rate charts.................................................................. 30 Do you have questions or need help? Internet Phone ­­­­www.oregon.gov/dor 503-378-4988 or 800-356-4222 • Download forms, instructions, and publications. • Access additional information not included in these instructions. Monday–Friday, 7:30 a.m.– 5 p.m. Closed Thursdays from 9–11 a.m. Closed holidays. Wait times may vary. Revenue Online Contact us for ADA accommodations or assistance in other languages. ­­­­www.oregon.gov/dor (click on Revenue Online) • Securely communicate with us. • Check your refund status. • Make or schedule payments. • View your account history. • Find out how much you owe. • File an appeal. • View letters and your Form 1099-G, if applicable. In person Offices are located in Salem, Portland, Eugene, Bend, Gresham, and Medford. Find hours and directions to our offices on our website. Our main office is located at: 955 Center St NE Salem, OR 97301-2555 Email or write ­ [email protected] q ­[email protected] Taxpayer Advocacy Oregon Department of Revenue 955 Center St NE Salem OR 97301-2555 • Include your name and daytime phone number. • Include the last four digits of your SSN or ITIN. To request printed forms or publications: Forms Oregon Department of Revenue PO Box 14999 Salem OR 97309-0990 If you think you are not being treated fairly, or if you have a problem or complaint, please contact the Office of the Taxpayer Advocate for assistance. 503-945-8700 TTY: We accept all relay calls. [email protected] Photo on cover: Walkway under the South Falls of Silver Falls State Park near Silverton. 150-101-040-1 (Rev. 12-06-23) 2 2023 Form OR-40 Instructions Electronic filing 1. Ask your tax preparer. If your tax preparer is an authorized IRS e-file provider, your preparer can electronically file your federal and Oregon returns. Many Tax-Aide and Tax Counseling for the Elderly (TCE) sites set up by the IRS are authorized IRS e-file providers. 2. Use online tax preparation software. You can file your federal and state returns from your home, work, or library computer using Oregonapproved online tax preparation products. Go to our website at www.oregon.gov/dor/e-filing ­­ for a list of tax preparation products to use in preparing your federal and Oregon returns. You may be eligible for free e-file. Several tax preparation software providers offer free online electronic tax filing. For free online tax preparation programs, go to ­­www.oregon.gov/dor/e-filing. E-filing is the fastest way to file your return and receive your refund. The speed and accuracy of computers allow electronic returns to be received and processed faster than paper returns, greatly reducing errors and delays. E-filing uses secure technology to ensure the safety of your personal information when it’s sent to the IRS and the Department of Revenue. Oregon participates in the IRS Federal/State E-file program. This program allows you to electronically file both your federal and Oregon returns at the same time. If you’ve already filed your federal return, you can still electronically file your Oregon return. If you haven’t tried e-file yet, why not this year? Join more than 1.8 million other Oregon taxpayers who electronically file their Oregon returns. You can take advantage of e-file in one of two ways: Federal tax law No extension to pay. Oregon doesn’t allow an extension of time to pay your tax, even if the IRS allows an extension. Your 2023 Oregon tax is due April 15, 2024. Section 139A­, the tax exemption for federal subsidies for employer prescription drug plans. If you have this type of business income, you’ll have an addition on your Oregon return. Federal law connection. Oregon has a rolling tie to changes made to the definition of federal taxable income, with the exceptions noted below. For all other purposes, Oregon is tied to federal income tax laws as amended and in effect on December 31, 2022. Oregon is disconnected from IRC Section 529 tax exemption for earnings on college savings plan funds used for K-12 tuition. Oregon College and MFS 529 Savings Plans may be used for higher education expenses only. If you based a previous subtraction or credit on contributions that are withdrawn and used for K-12 tuition, you'll have an addition or tax recapture on your Oregon return. Oregon exceptions to federal law. Oregon is disconnected from the business income deduction allowed by Section 199A of the Internal Revenue Code (IRC). Due to the way Oregon’s returns are designed, no addition is required. Oregon is also disconnected from IRC 150-101-040-1 (Rev. 12-06-23) 3 2023 Form OR-40 Instructions New information Oregon Kids Credit. A new refundable tax credit is available to certain taxpayers with a qualifying child age 5 or younger. See instructions for line 37. of the subtraction. See “Subtractions” in Publication OR-17 for more information. Pass-through entity elective tax. There is now a subtraction available for refunds of the elective tax that were passed through to you and included as income on your federal return. See “Subtractions” in Publication OR-17 for more information. Paid Leave Oregon benefits. Oregon’s new program providing medical, family, and safe leave began paying benefits September 3, 2023. Changes to your return may be necessary if you received benefits under the program. See “Subtractions” in Publication OR-17 for more information. Forest conservation credit. A new tax credit is avail­ able to small forestland owners that choose to create a forest conservation area. The forest conservation area requires restrictions on harvest to be followed for 50 years. See “Carryforward credits” in Publication OR-17 for additional information. National Guard subtraction. Pay for active service in the National Guard can now generally be subtracted from taxable income if the service is authorized by the Governor. This change also applies retroactively to tax years 2021 and 2022. If you received National Guard pay during those years, you will need to amend your return to take advantage of the subtraction. See “Military personnel filing information” in Publication OR-17 for more information Agricultural Employer Overtime Tax Credit. A refundable credit is available for employers who pay overtime to their agricultural workers. Employers must apply for the credit in January for overtime wages paid in the prior year, and they must receive notification of the credit amount from the Department of Revenue before the credit can be claimed. See “Refundable credits” in Publication OR-17 for more information. Casualty loss from state-declared emergency. If you experienced a loss in Oregon due to a state-declared emergency and weren’t able to deduct it on your fed­eral return, you may be able to take a subtraction on your Oregon return. This subtraction applies to tax years 2020, 2021, and 2022, as well as future years. If you meet the requirements for the subtraction for those years, you’ll need to amend your return to take advantage Federal tax liability subtraction. The 2023 federal tax subtraction limit is $7,800 ($3,900 for married filing separately). It may be limited further based on your adjusted gross income (AGI). See instructions for line 10. Important reminders Revenue Online. Revenue Online provides convenient, secure access to tools for managing your Oregon tax account. To set up your Revenue Online account, go to­ ­www.oregon.gov/dor and click on “Revenue Online.” OR-ASC. Without this information, we may disallow or adjust your claim. Schedule OR-ASC and Publication OR-CODES are available at www.oregon.gov/dor/ ­­ forms or you can contact us to order them. Federal return. You must include a copy of your federal Form 1040 or 1040‑SR and Schedules 1 through 3 (if applicable), 1040‑X, or 1040‑NR with your Oregon return. Without this information, we may disallow or adjust items claimed on your Oregon return. Publication  OR-17. See Publication OR-17 for more information about filing and personal income tax laws. It is available at www.oregon.gov/dor/forms. ­­ Data security breaches. Tax professionals suffering a data breach associated with tax return preparation must report the breach promptly to us. See our website for additional information. Schedule OR-ASC. If you’re claiming an addition, subtraction, tax recapture, or credit using a code listed in Publication OR-CODES, you must include Schedule 150-101-040-1 (Rev. 12-06-23) 4 2023 Form OR-40 Instructions General information return included to ensure smooth processing. If you don’t have a federal filing requirement, create a substitute return and check the “calculated using ‘as-if’ federal return” box on your return. Do I need to file an Oregon return? You need to file if your gross income is more than the amount shown below for your filing status. Returns mailed closer to April 15, when we receive the most returns, can take longer to process. Table 1. Filing thresholds Amounts apply to full-year residents only. Also, returns that require additional review can take more time to process. Typical reasons for additional review include: incomplete documentation, identity verification needed, claiming the working family household and dependent care credit, proof of tax withheld needed, etc. Number of boxes And your checked on line gross income 17 of return: is more than: Any $1,250* 0 $7,305 Single 1 $8,505 2 $9,705 0 $14,605 1 $15,605 Married filing 2 $16,605 jointly 3 $17,605 4 $18,605 0 $7,305 Married filing 1 $8,305 separately 2 $9,305 0 $9,165 Head of household 1 $10,365 2 $11,565 0 $10,180 Qualifying 1 $11,180 surviving spouse 2 $12,180 Your filing status is: Dependent To check the status of your refund, click on “Where’s my refund?” at www.oregon.gov/dor/personal. ­­ What income does Oregon tax? An Oregon resident is taxed on all income, including income from outside the state. A nonresident of Oregon is taxed only on income from Oregon sources. Residency Am I a resident, a nonresident, or a part-year resident? • You're a full-year Oregon resident, even if you live outside Oregon, if all of the following are true: — You think of Oregon as your permanent home. — Oregon is the center of your financial, social, and family life. — Oregon is the place you intend to return. *The larger of $1,250, or your earned income plus $400, up to the standard deduction amount for your filing status. • You're still a full-year resident if: — You temporarily moved out of Oregon, or — You moved back to Oregon after a temporary absence. In addition, file a return if: • You’re required to file a federal return. • You had $1 or more of Oregon income tax withheld from your wages and you want to claim a refund. • You may qualify to claim a refundable credit. You may also be considered a full-year resident if you spent more than 200 days in Oregon during 2023 or you’re a non-U.S. citizen without permanent resident status. How long will it take to get my refund? • You’re a nonresident if your permanent home was outside Oregon all year. Return processing times vary due to many factors, including the complexity of your return. • You’re a part-year resident if you moved into or out of Oregon during 2023. You're not considered a partyear resident if: Electronically filed returns are generally received and processed faster. — You temporarily moved out of Oregon, or — You moved back to Oregon after a temporary absence. Paper returns must have all required Oregon schedules, proof of tax withheld, and a copy of your federal 150-101-040-1 (Rev. 12-06-23) 5 2023 Form OR-40 Instructions Residents (or Oregon-domiciled service members) stationed outside of Oregon. If you meet the requirements for special-case Oregon residents or Oregon residents living abroad, file Form OR-40-N. File Form OR-40 if you don’t meet those requirements. Special-case Oregon residents. If you’re an Oregon resident and you meet all of the following conditions, you’re considered a nonresident for tax purposes: • You maintained a permanent home outside Oregon for the entire year. • You didn't keep a home in Oregon during any part of the year. • You spent less than 31 days in Oregon during the year. Residents (or Oregon-domiciled service members) stationed in Oregon. Your pay is subject to tax, although the pay could qualify for certain subtractions. For more information on subtractions available to military personnel, see Publication OR-17. Important. A recreational vehicle (RV) isn’t considered a permanent home outside of Oregon. Oregon residents living abroad. You’re considered a nonresident if you’re a qualified individual for purposes of the federal foreign earned income or housing exclusion for U.S. residents living abroad. Military personnel on active service in Oregon are treated as nonresidents for tax purposes if their address in the payroll records of the Defense Finance and Accounting System (DFAS) is outside Oregon, regardless of where they are domiciled (ORS 316.027). What form do I use? Filing for a deceased person Use Form OR-40 if you’re a full-year Oregon resident. Use Form OR-40-P if any ONE of the following is true: • You’re a part-year resident. • You’re filing jointly and one of you is a full-year Oregon resident and the other is a part-year resident. • You’re filing jointly and both of you are part-year Oregon residents. • You qualified as an Oregon resident living abroad for part of the year. A personal income tax return must be filed for a person who died if the person would have been required to file. See “Do I need to file?” on the previous page. Check the “Deceased” box next to the person’s name on the return. If you have been appointed personal representative or you have filed a small estate affidavit, sign the return as ”personal representative.” A surviving spouse must sign if it’s a joint return. If there’s no personal representative, only the surviving spouse needs to sign a joint return. Use Form OR-40-N if any ONE of the following is true: • You’re a nonresident. • You’re a special-case Oregon resident. • You’re filing jointly and one, or both, of you is a nonresident. • You meet the military personnel nonresident requirements. • You qualified as an Oregon resident living abroad for the entire year. Note: Oregon has an estate transfer tax on estates valued at $1 million or more. The tax is paid by the estate using Form OR-706, not by the individuals receiving the inheritance. For more information, see the instructions for Form OR-706. Forms OR-40, OR-40-P, and OR-40-N can be found at­­ www.oregon.gov/dor/forms or you can contact us to order it. When should I file my return? The filing deadline for calendar year 2023 is April 15, 2024. If you can’t pay your tax by the due date, it’s important to file your return anyway to avoid a latefiling penalty. Military personnel Nonresidents stationed in Oregon. Oregon doesn’t tax your military pay while you’re stationed in Oregon. File Form OR-40-N if you had other income from Oregon sources or to claim a refund of Oregon tax withheld from your military pay. Returns for fiscal filers are due by the 15th day of the fourth month after the close of their tax year. What if I need more time to file? Military spouses. Federal law does not allow Oregon to tax your wages if you’re in Oregon only to be with your spouse who is stationed in Oregon. If you’re domiciled in Oregon and your spouse is a resident of another state, federal law allows you to choose to be treated for tax purposes as a resident of your spouse’s state. File Form OR-40-N if you had other income from Oregon sources or are claiming a refund of withheld Oregon tax. 150-101-040-1 (Rev. 12-06-23) If you requested a federal extension to file, Oregon will allow the same extension. Don’t include a copy of your federal extension with your Oregon return; keep it with your records. If you need an extension of time to file only your Oregon return, see Publication OR-40-EXT. The due date for filing your return on extension is October 15, 2024. 6 2023 Form OR-40 Instructions withholds from your Oregon wages. For withholding information, go to ­­www.oregon.gov/dor/personal. An extension doesn’t mean more time to pay. To avoid interest charges, you must pay all of the tax you expect to owe by April 15, 2024. If you can’t pay all of the tax you expect to owe, pay what you can. You’ll owe interest on any unpaid tax starting April 16, 2024, until the date of your payment. You may also be charged a penalty for failing to pay your tax on time. See “Penalties” and the instructions for line 42. Oregon and federal estimated tax laws are not the same. See Publication OR-ESTIMATE for more information, including: • Detailed instructions for calculating installment payments. • Tax rate charts for 2024. • Installment periods and due dates. • Helpful worksheets and examples. • Payment instructions. Don’t forget to check the “Extension filed” box on your return when you file. File your return by October 15, 2024. You can find Publication OR-ESTIMATE and the payment voucher, Form OR-40-V, on our website or you can contact us to order them. Penalties If you don’t pay all of your tax by April 15, 2024, you may be charged a 5 percent penalty on the unpaid amount, even if you requested an extension to file your return. Oregon doesn’t allow an extension of time to pay tax, even if the IRS does. Interest on underpayment of estimated tax You may owe interest for underpaying your estimated tax if: You’ll be charged a 20 percent penalty for failing to file your return if you file it more than three months after the due date, including extensions. If both penalties apply, the total penalty will be 25 percent of the unpaid tax. • The tax on your return after credits and withholding is $1,000 or more; or • You underpaid one or more of your required estimated tax installments. Note: If you fail to file returns for three consecutive years by the due date for the third year’s return, including extensions, you’ll be charged a penalty of 100 percent of each year’s unpaid tax. See the instructions for line 43 and Form OR-10 Instructions for more information. For more information about these and other penalties, see the instructions for line 42 and “Interest and Penalties” in Publication OR-17. What if I’m self-employed? If you’re self-employed and do business in Multnomah, Clackamas, or Washington counties, you may need to file Form OR-TM. If you’re selfemployed and do business in Lane County, you may need to file Form OR‑LTD. Go to our website to download the forms, contact us to order either form, or file electronically through Revenue Online at ­­www.oregon.gov/dor. 2024 estimated tax Estimated tax is the amount of tax (after credits and Oregon tax withheld) you expect will be shown on your return when you file. Do I need to make estimated payments? In most cases, if you expect your return to show that you will owe $1,000 or more in tax after credits and withholding you must make estimated payments. You may need to make estimated payments if: What if I need to change my Oregon return after filing? It depends on what you need to change. Follow these instructions for amending (changing) your return if: • You're self-employed and don’t have Oregon tax withheld from your income. • You have Oregon Lottery single-ticket winnings of less than $1,500. • Oregon tax isn’t withheld from other types of income (such as pensions, interest, or dividends) and you expect to owe tax of $1,000 or more. • You’re a wage earner but after withholding you still expect to owe tax of $1,000 or more on your 2024 return. You may want to increase the amount your employer 150-101-040-1 (Rev. 12-06-23) • You discover that your income, deductions, or other item(s) were wrong. • You used a form that didn’t match your residency status. • Your filing status wasn’t correct. • The IRS or another state adjusted or audited your return and it affects your Oregon tax. • You have a net operating loss (NOL) carryback. 7 2023 Form OR-40 Instructions • Changes in federal or state income tax laws affect a return you’ve already filed. What if I need to change a return I filed for an earlier year? Don’t amend your Oregon return if: Refer to the instructions for the tax year you need to amend. Visit our website or you can contact us if you need the form and instructions for a different year. • We made changes to your return and you object to those changes. You must follow the appeal process in the notice we sent you. • You’re filing a protective claim for a refund. Use Form OR-PCR, which is available on our website or you can contact us to order it. How long will it take to process my amended return? It may take six months or longer to process your amended return. Amended worksheet There’s a time limit for filing an amended return to claim a refund. See the instructions for lines 46 through 50, and for more information, see “Amended returns” in Publication OR-17. Use this worksheet to figure your amended refund or tax to pay. Keep the completed worksheet with your records. Note: If we adjusted any of the amounts on your original 2023 return, use the adjusted amounts. How do I amend my 2023 return? 1. Amended tax after standard and carryforward credits (amended Form OR-40, line 31). 2. Amended total payments and refundable credits (amended Form OR-40, line 40). 3. Line 1 minus line 2. If less than 0, use a minus sign. 4. Refund you already had for 2023 (original Form OR-40, line 47; Form OR-40-N, line 72; or Form OR-40-P, line 71). If you didn’t have a refund, enter 0. 5. Amended tax to pay or refund. Line 3 plus line 4. If less than 0, you have a refund; go to line 6. If more than 0, you owe tax; skip to line 8. 6. Refund applications that weren’t on your original return (amended Form OR-40, lines 48 through 51), up to the refund amount on line 5. Don’t use a minus sign. Example: If line 5 is –$500, you may apply up to $500 on your amended Form OR-40, lines 48 through 51. 7. Net amended refund. Line 5 plus line 6. This can’t be more than 0. 8. Penalty and interest on amended tax to pay (amended Form OR-40, line 45). 9. Total amended amount you owe. Line 5 plus line 8. 10. Payments made on or after April 15, 2024. 11. Total amount to pay with your amended return. Line 9 minus line 10. General instructions • Complete the return as it should’ve been filed, including adjustments we made. • Check the “Amended return” box on the first page. • In the “Amended statement” space, provide the return line number and reason for each change. • Use the Amended worksheet, below, to figure your amended tax due or refund. • If you’re amending your federal return or a return you filed with another state, include a copy of those amended returns with your amended Oregon return. If you’re only amending your Oregon return, include a copy of your original federal return. Don’t include a copy of your original Oregon return. Residency. Use the form that matches your residency status for the year you’re amending, even if your original return was filed on a different form. Mailing address. Use your current address. Adjustment made by the IRS or another state. Include a copy of the corrected federal or other state return or audit report. Electronically file your amended return. You can now electronically file your Oregon amended return, if your chosen software supports filing an amended federal return. You will need to contact your software provider to find out if they support filing an amended federal return. NOL carryback. Enter the loss year in the NOL-year box on the first page of the return. If you’re carrying back an NOL from more than one year, file a separate amended return for each NOL year. In the “Amended statement” space, tell us the section number of the IRC or Oregon Revised Statute (ORS) that allows you to carry the NOL(s) back to the 2023 tax year. See “Net operating losses for Oregon” in Publication OR-17 for more information. 150-101-040-1 (Rev. 12-06-23) 8 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 2023 Form OR-40 Instructions General instructions for Form OR-40 Step 1: Complete your federal return Calculated using “as if” federal return Complete your federal return first. Do this even if you aren’t required to file a federal return. You must use the information from your federal return to complete your Oregon return. You must include a copy (front and back) of your federal Form 1040 or 1040‑SR with Schedules 1 through 3 (if applicable), or 1040‑NR with your Oregon return. If you're amending your Oregon return and your federal return, include a copy of Form 1040‑X and an amended Form 1040 or 1040‑SR with Schedules 1 through 3 (if applicable). Check this box if: • You’re filing as an Oregon RDP. • Your filing status is married filing separately for Oregon only because you and your spouse don’t have the same residency status. • You didn’t file a federal return. Short-year tax election If you’re filing a short-year return due to a bankruptcy, check this box and write the ending date in the “Fiscal year ending” box. If you don’t provide a copy of your federal return, we may adjust or deny your Oregon subtractions, deductions, and credits. Include federal Schedules 1 through  3 (if applicable); don’t include any other federal schedules unless otherwise instructed. We may ask you for copies of other schedules or additional information later. Extension filed Check this box if you requested an extension to file your return. See “What if I need more time to file?” in the “General information” section and Publication OR‑40-EXT for more information. Form OR-24 Oregon registered domestic partners (RDPs): To correctly determine your Oregon tax liability, you must complete a federal income tax return as if you were filing as married filing jointly or married filing separately. Check the “Calculated using ‘as if’ federal return” box on your Oregon return. Check this box if you’re deferring gain on like-kind property that was exchanged or converted. You will report the gain to Oregon when it’s reported on your federal return (federal Form 8824). You must include Form OR-24 with your Oregon return or provide it electronically through your Revenue Online account at www.oregon.gov/dor. ­­ For more information on how to file as an RDP, go to ­­www.oregon.gov/dor and search for “RDP.” Form OR-243 Check this box if you are attaching Form OR-243, Claim to Refund Due a Deceased Person. Step 2: Select the appropriate Oregon form Federal Form 8379 To decide which form to use, see “What form do I use?” in the “General information” section. Check this box if you’re requesting your joint refund be apportioned and you are attaching federal Form 8379. For additional information, see “Injured spouse refund claims” in Publication OR-17. Step 3: Fill out the Oregon return Use blue or black ink only for easier reading and faster processing. The equipment used to scan documents and checks can’t read gel ink or certain colors, and using them will delay the processing of your return. Federal Form 8886 Check this box if you filed federal Form 8886, Reportable Transaction Disclosure Statement. Disaster relief Fiscal-year filers If you were affected by a presidentially-declared natural disaster in 2023, check this box. Write the ending date of your fiscal year in the “Fiscal year ending” box on the return. Name and address Check the boxes Type or clearly print your own and, if married, your spouse's name, date of birth, and Social Security number (SSN). Enter your spouse’s information even if you’re filing as married filing separately. If you’re filing for someone who died in 2023 or 2024, check the “Deceased” box next to their name. Amended return If you’re amending your 2023 return, check this box. See “What if I need to change my return after filing?” in the “General information” section for instructions. 150-101-040-1 (Rev. 12-06-23) 9 2023 Form OR-40 Instructions Table 2. Spouses with different residency status SSN. You must provide your SSN per Section 405, Title 42, of the United States Code. We will only use it to establish your identity for tax purposes. Spouses’ residency status: Part-year and nonresident Follow these instructions if you’ve filed previous tax returns using an individual taxpayer identification number (ITIN) and this is your first year filing using your new SSN: • Check the “First time using this SSN” box. • Write your previous identification number on the first line of the “Amended statement” space on page 8 of your return. If you file separate returns: OR-40-N Each spouse uses the form that matches their individual residency status Nonresident and full-year resident OR-40-N Part-year and fullyear resident OR-40-P How to file separate returns for Oregon If you’re filing a joint federal return but separate Oregon returns, enter your spouse’s name, SSN, and date of birth on your return. Report your own share of federal AGI and deductions. Also, report your share of any Oregon additions or subtractions using this formula to determine your percentage: ITIN. If the IRS assigned you an ITIN because you don’t qualify for an SSN, enter your ITIN wherever an SSN is requested. Refunds will not be issued without a valid SSN or ITIN. If you don’t have an ITIN, you must request one from the IRS. To get an ITIN application (federal Form W-7), go to ­­www.irs.gov or call 800-829-1040. Your share of federal AGI Joint federal AGI If you’ve applied for an ITIN but you haven’t received it yet: = Your percentage (not to exceed 100%) Check the “Calculated using ‘as if’ federal return” box on your return. You must include the following forms with both Oregon returns: • Check the “Applied for ITIN” box. • File your return by April 15, 2024. • Don’t include Form W-7 with your return. Keep it with your records. • Once the IRS issues your ITIN, mail a copy of your ITIN letter to us at PO Box 14999, Salem OR 97309-0990. • A federal Form 1040, 1040-SR, or 1040-NR with Schedules 1 through 3 (if applicable) prepared as if you had filed as married filing separately. • A copy of the joint Form 1040, 1040-SR, or 1040-NR with Schedules 1 through 3 (if applicable) that you actually filed with the IRS. Mailing address: Enter your current mailing address. This is where we’ll send any refund or correspondence, if needed. Enter your current daytime phone number. If the federal form you filed is an amendment, include Form 1040‑X and federal returns as amended for your actual and “as if” returns. If possible, mail both spouses’ Oregon returns in the same envelope. Don’t staple the returns together. Filing status For more information, see “Filing status” in Publication OR-17. Check the box next to your filing status. Generally, you must use the same filing status for your Oregon and federal returns. Choose only one filing status. 1 – 5 Exemptions Yourself and spouse. If you can’t be claimed as a dependent on someone else’s return, check the “Regular” exemption box below line 6a; otherwise, check the "Someone else can claim you as a dependent" box, even if the other person doesn’t actually claim you as a dependent. 6a & 6b Exception for Oregon RDPs. As an Oregon RDP, you’re not eligible to use the single filing status on your Oregon return. For Oregon, you’re generally required to use married filing jointly or married filing separately. For more information, go to our website, see “Filing an Oregon return” in Publication OR-17, or contact us. Check the “Regular” exemption box below line 6b if no one else can claim your spouse as a dependent and you’re filing as: Exceptions for married persons who filed a joint federal return when each person had a different residency status. Use Table 2 to determine which return form to use if you file a joint return or separate returns for Oregon. 150-101-040-1 (Rev. 12-06-23) If you file a joint return, use: • Married filing jointly. • Married filing separately and your spouse has no income. 10 2023 Form OR-40 Instructions Table 3. Relationship codes Otherwise, check the "Someone else can claim you as a dependent" box, even if the other person doesn’t actually claim your spouse as a dependent. Title Child Stepchild Foster child Sibling Severely disabled. Did you or your spouse have a severe disability at the end of 2023? If so, you can claim an additional exemption. This is different from the disabled child exemption. You may qualify for and claim the severely disabled exemption even if someone else can claim you as a dependent. You're considered to have a severe disability if any of the following apply: • You permanently lost the use of one or both feet. • You permanently lost the use of both hands. • You’re permanently blind. • You have a permanent condition that, without special equipment or outside help, limits your ability to earn a living, maintain a household, or transport yourself. • You're unable to earn a living due to a permanent condition or an impairment of indefinite duration. If you have a severe disability, your physician must write a letter describing it. Keep the letter with your records in case we request a copy. If you qualify, check the “Severely disabled” exemption box below line 6a. If your spouse qualifies, check the “Severely disabled” exemption box below line 6b. Parent PT Spouse Grandparent SP GP Grandchild Aunt/Uncle GC AU Niece/Nephew NN Other relative OR No relation NR Relationships included Biological or adopted child. Stepchild. Foster child. Sibling, half sibling, stepsibling, or sibling-in-law. Parent, stepparent, or parent-in-law. Spouse or RDP. Grandparent or great-grandparent. Grandchild or great-grandchild. Parent's sibling or the sibling's spouse or RDP. Sibling's child, grandchild, or other descendant. Child's spouse or RDP, cousin, or other related individual. Unrelated qualifying individual. Children with a disability. You may be entitled to an additional personal exemption for your dependent child who has a qualifying disability. To qualify, all of the following must be true: 6d Total exemptions for you and spouse. Enter the total number of exemptions claimed for yourself on line 6a and for your spouse on line 6b. • Your child (age 21 or younger) qualified as your dependent for 2023. • Your child was eligible for early intervention services or special education as defined by the State Board of Education of the state where the child attends school. • Your child had an eligible disability as of December 31, 2023 under the federal Individuals with Disabilities Education Act. Eligible disabilities include: All dependents. Enter your dependents’ information in order from youngest to oldest. For each dependent, list their first name, last name, relationship code (see Table 3), SSN, and date of birth. In most cases, you will list the same dependents you claimed on your federal return. 6c You can list up to three dependents on the return. If you have more than three dependents, fill out Schedule OR-ADD-DEP for your remaining dependents. If you have more than eight dependents, fill out and include an additional Schedule OR-ADD-DEP. Do not list the same dependents on your return and on Schedule OR-ADD-DEP. — Autism spectrum disorder. — Communication disorder. — Deafblindness. — Developmental delay. — Emotional disturbance. — Hearing impairment (including deafness). — Intellectual disability. — Orthopedic impairment. — Other health impairment. — Specific learning disability. — Traumatic brain injury. — Visual impairment (including blindness). Include Schedule OR-ADD-DEP with your return. You can download the schedule from our website or contact us to order it. On line 6c, enter the total number of your dependents, including the number from line 1 of Schedule OR-ADD-DEP. 150-101-040-1 (Rev. 12-06-23) Code SD SC FC SB 11 2023 Form OR-40 Instructions Each year, you must be able to provide an eligibility statement confirming that your child has been diagnosed with one of the disabilities listed above and a cover sheet from one of the following: box next to the name of each child with a qualifying disability. Enter the total number of children with a qualifying disability, including the number of children on line 2 of Schedule OR-ADD-DEP, on line 6d. • The child’s Individualized Education Program (IEP). • The child’s Individualized Family Service Plan (IFSP). Total exemptions. Add lines 6a through 6d and enter the total on line 6e. This is your total number of exemptions. 6e Keep the statement and cover sheet with your records. Check the “Check if child has a qualifying disability“ 150-101-040-1 (Rev. 12-06-23) 12 2023 Form OR-40 Instructions Form OR-40 line instructions Don’t enter cents. You must round off cents to the nearest dollar. For example, $99.49 becomes $99, and $99.50 becomes $100. If you don’t round entries to the nearest dollar, there may be small variations in the totals we use. Caution: Don’t include any of the following in your calculation: • Self-employment tax. • Social Security and Medicare tax on tips. • Household employment taxes. • Penalties or interest. Federal adjusted gross income (AGI). Enter your federal AGI from Form 1040, 1040-SR or 1040‑NR, line 11; or Form 1040‑X, line 1C. You must include a copy (front and back) of your federal return, including Schedules 1 through 3 (if applicable), with your Oregon return. This helps us verify your income and process your return faster. If you don’t include your federal return with your Oregon Form OR-40, items claimed on your return may be adjusted or denied. 7 Federal tax worksheet Note: All references to federal Form 1040 in this worksheet also include references to Forms 1040-SR and 1040-NR, unless otherwise indicated. This also includes versions of these forms in other languages. Instructions for Federal tax liability subtraction worksheet Additions Line 1: Enter your federal tax liability after nonrefundable credits but before other taxes. This is found on Form 1040, line 22. Total additions from Schedule OR-ASC. Enter the total from Schedule OR-ASC, line A5. Include the schedule with your return. 8 Line 2: If you need to repay any of the advance premium tax credit that you received during the year, enter the repayment amount claimed on Form 1040, Schedule 2, line 2. If not, enter 0. For more information about additions, see Schedule OR-ASC and OR-ASC-NP Instructions or “Additions” in Publication OR-17. Line 3: Line 1 minus line 2. If the results are less than 0, enter 0. Subtractions Line 4: Enter the total of any other taxes, plus any additions to tax that include only income tax, such as tax credit recaptures, from Form 1040, Schedule 2, lines 8, 16, and 17. Also include the amount reported on Schedule 2, line 10, only if you’re repaying a 2008 firsttime homebuyer credit and filing federal Form 5405. Include any tax on non-effectively connected income from Form 1040-NR, line 23a. Don’t include any additions to tax from Schedule 2, line 17 that are penalties, interest, excise tax, or other amounts that aren’t income tax. If you have no other taxes, enter 0. 2023 federal tax liability subtraction. Complete the following worksheet to determine your federal tax liability subtraction for 2023. Carefully follow the instructions. Don’t confuse your federal tax liability on your federal return with the federal tax withheld on a Form W-2. They aren’t the same. RDPs and those filing as “married filing separately for Oregon only,” use amounts from your actual federal return(s), not your “as if” return. 10 The federal tax liability subtraction limit for 2023 is $7,800 ($3,900 if married filing separately). The subtraction is further limited by the AGI phase-outs shown in Table 4. Line 5: Add lines 3 and 4. This is your federal income tax liability before refundable credits. Note: Use the worksheet(s) in the “Federal income tax liability” section of Publication OR-17 if any of these situations apply: Line 6: Enter your American Opportunity credit from Form 1040 or 1040-SR, line 29. • You’re amending your 2023 federal return or we corrected the federal tax liability subtraction on your original 2023 Oregon return. • A prior year’s federal return was audited or amended, resulting in additional federal tax paid or refunded in 2023. • You paid income tax to a foreign country. • You filed your federal return on Form 1040‑NR. • You reported recapture taxes or credits on your federal return. 150-101-040-1 (Rev. 12-06-23) Line 7: Enter your total premium tax credit amount from federal Form 8962, line 24. This is your allowable premium credit regardless of any excess advance payments you received or credit you’re claiming on your federal return. Line 8: Add lines 6 and 7. These are the total refundable credits that must be subtracted from your federal income tax liability. 13 2023 Form OR-40 Instructions Table 4. Federal tax liability subtraction AGI phaseout Line 9: Line 5 minus line 8. If less than 0, enter 0. This is your federal income tax liability after refundable credits (other than EITC). And your federal adjusted gross income is: Line 10: Enter your maximum allowable federal tax liability subtraction amount from Table 4. Don’t enter more than your limit or less than zero. If your filing status is: Line 11: Enter the smaller of line 9 or line 10. This is your federal tax liability subtraction. Federal tax liability subtraction worksheet 1. Federal tax liability (Form 1040 line 22). 1. 2. Excess advance premium tax credit (Form 1040, Schedule 2, line 2). 2. Single Married filing separately 3. Line 1 minus line 2. (If less than 0, 3. enter 0). 4. Other taxes (see instructions). 4. 5. Line 3 plus line 4. 5. 6. American Opportunity credit (form 1040, line 29). 6. 7. Premium tax credit (Form 8962, line 24). 7. 8. Line 6 plus line 7. 8. 0 $250,000 $250,000 $260,000 $260,000 $270,000 Head of household; or $270,000 $280,000 Qualifying $280,000 $290,000 surviving spouse $290,000 or more Married filing jointly; or 9. Line 5 minus line 8. (If less than 0, 9. enter 0). 10. Maximum subtraction amount from Table 4. 10. 11. Smaller of line 9 or line 10. This is your federal tax liability subtraction. 11. At But less least— than— 0 $125,000 $125,000 $130,000 $130,000 $135,000 $135,000 $140,000 $140,000 $145,000 $145,000 or more 0 $125,000 $125,000 $130,000 $130,000 $135,000 $135,000 $140,000 $140,000 $145,000 $145,000 or more Then your maximum allowable tax liability subtraction is: $7,800 $6,250 $4,700 $3,100 $1,550 0 $3,900 $3,125 $2,350 $1,550 $775 0 $7,800 $6,250 $4,700 $3,100 $1,550 0 Social Security and tier 1 Railroad Retirement Board benefits income. Enter the amount from federal Form 1040 or 1040‑SR, line 6b. If you have tier 2, windfall/vested dual, or supplemental Railroad Retirement Board benefits, these are subtracted in Section B of the Schedule OR-ASC, using code 330. For more information, see this topic under “Income” in Publication OR-17. 11 Are you amending your 2023 return? Usually you can't change your federal tax subtraction on your amended return. See the “Federal income tax liability” section in Publication OR-17 for more information before making changes to this subtraction. Oregon income tax refund included in federal income. Enter your Oregon state income tax refund from federal Form 1040 or 1040‑SR, Schedule 1, line 1. Don’t include local, county, or other states’ tax refunds. 12 Total subtractions from Schedule OR-ASC. Other subtractions not explained here are claimed on Schedule OR-ASC. Enter the total from Schedule ORASC, line B7. Include the schedule with your return. 13 For more information about subtractions, see Schedule OR-ASC and OR-ASC-NP Instructions or “Subtractions” in Publication OR-17. 150-101-040-1 (Rev. 12-06-23) 14 2023 Form OR-40 Instructions Standard deduction—Dependents who can be claimed on another taxpayer’s return. If someone else can claim you as a dependent, your standard deduction is limited to the larger of: Deductions In general, you can claim Oregon itemized deductions or the standard deduction, whichever is larger, but not both. • Your earned income plus $400, up to the maximum allowed for your filing status (see Table 5); or • $1,250. See the exceptions below for: • Dependents who can be claimed on another taxpayer’s return. • Non-U.S. citizens without permanent resident status. • Spouses filing separate returns. This limit applies even if the other person doesn't actually claim you as a dependent on their return. If you’re a dependent and not married, use the following worksheet to figure your standard deduction. If you’re a dependent and married, see “Deductions and modifications” in Publication OR-17. Itemized deductions. If you’re itemizing your deductions for Oregon, enter the amount from Schedule OR-A, line 23. Note: Don’t enter your federal itemized deductions; the amount allowed for Oregon may be different. You can download Schedule OR-A and the instructions from our website or you can contact us to order it. 16 Standard deduction worksheet for single dependents If you’re not itemizing, enter 0. Standard deduction. Generally, your standard deduction is based on your filing status, as shown in Table 5: 17 Table 5. Standard deduction Single Married filing jointly Married filing separately • If spouse claims standard deduction • If spouse claims itemized deductions Head of household Qualifying surviving spouse 1. 2. Additional $400. 2. 3. Add lines 1 and 2. 3. 4. Minimum standard deduction. 4. $400 $1,250 5. Enter the larger of line 3 or line 4. 5. $2,605 $5,210 $2,605 0 $4,195 $5,210 Standard deduction—Age 65 or older, or blind. If you or your spouse turned age 65 by January 1, 2024, or were blind at the end of the tax year, you're entitled to a larger standard deduction. If you or your spouse are permanently blind, you may also qualify for the severely disabled exemption credit; see the instructions for lines 6a and 6b. 6. Basic standard deduction for single. 6. 7. Enter the smaller of line 5 or line 6. 7. 8. If you turned age 65 by 1/1/2024, enter $1,200. Otherwise, enter 0. 8. 9. If you’re blind, enter $1,200. Otherwise, enter 0. 9. 10. Add lines 7, 8, and 9. This is your standard deduction. $2,605 10. Earned income includes salaries, wages, tips, professional fees, or other amounts received as pay for work you actually performed, and any part of a scholarship or fellowship grant you received that is included in your gross income. Check the applicable boxes below line 17, then multiply the number of boxes checked by: • $1,200 if single or head of household filing status; or • $1,000 for all other filers. Standard deduction­ —Non-U.S. citizen without permanent resident status. Your standard deduction is $0, but you may claim itemized deductions. Add this amount to the standard deduction for your filing status from Table 5. Enter the total on line 17. Example: Joni and Mike are married. By January 1, 2024, Joni had turned 61 and Mike had turned 67. Joni files the return as the primary taxpayer. She checks the box for spouse age 65 or older and adds $1,000 to their standard deduction. Joni enters $6,210 ($5,210 + $1,000) on line 17. 150-101-040-1 (Rev. 12-06-23) 1. Enter your earned income (see definition below). Standard deduction—Married filing separately. The standard deduction for married individuals filing separately is $0 if one spouse itemizes. This applies even if the standard deduction is more than your itemized deductions. 15 2023 Form OR-40 Instructions Farm asset capital gain method. Did you sell or exchange capital assets primarily used in farming because you were getting out of a farming business? Or, did you sell or exchange a farming business in which you held at least a 10 percent ownership interest? If so, you may be eligible for a reduced tax rate on the net capital gain from the proceeds. Use Schedule ORFIA-40 to compute the Oregon tax using this method. You can download it from our website or contact us to order it. Oregon tax Tax tables. Use the tax tables to find your tax if your taxable income on line 19 is less than $50,000. Find the range for your taxable income, then locate your tax in Column S or Column J: 20 • Use Column S if your filing status is single or married filing separately. • Use Column J if your filing status is married filing jointly, head of household, or qualifying surviving spouse. Enter the tax amount from Publication OR-FCG, line 9 and check box 20b. Don’t include Publication OR-FCG with your return. Keep it with your records. Tax rate charts. If your taxable income on line 19 is $50,000 or more, calculate your tax using the formula in the tax rate chart for your filing status. Oregon qualified business income reduced tax rate. Did you have business income from a sole proprietorship, partnership, or S corporation in which you materially participated? If so, you may qualify to use this reduced tax rate. For details, see Schedule OR-PTE-FY on our website or you can contact us to order it. • Use Chart S if your filing status is single or married filing separately. • Use Chart J if your filing status is married filing jointly, head of household, or qualifying surviving spouse. Note: If you elect to use this reduced tax rate for qualifying income, the election is irrevocable and must be made on your original return. An original return includes an amended return filed on or before the due date, including extensions. You can’t change the election after your original return has been filed. Example 1: Emily, a single taxpayer, has taxable income of $19,525. She uses Column S in the tax tables to find the tax on income that is at least $19,500 but less than $19,600. Emily enters $1,425 on line 20. Example 2: Daniel and Madison are filing a joint return. Their Oregon taxable income is $75,500. They use the formula in Chart J to calculate their tax as follows: Tax on the first $50,000 (from the chart) $3,805 Oregon taxable income $75,500 Minus the first $50,000 – 50,000 Excess over $50,000 $25,500 Multiply excess by 8.75% x 0.0875 Tax on excess over $50,000 Total Oregon tax If you use Schedule OR-PTE-FY to calculate your tax, enter the tax amount from Schedule OR-PTE-FY, line 14a and check box 20c. Include the schedule with your Oregon return or submit it at ­­www.oregon.gov/dor; click the link for Revenue Online and log in or create an account. Interest on certain installment sales. Did you have installment sales that required you to pay interest on the deferred tax liability for federal purposes? If so, you must also compute interest for Oregon using the same method as for federal. The annual interest rate is 6 percent for 2023 and 8 percent for 2024. 21 + $2,231 $6,036 Total tax recaptures from Schedule OR-ASC. All tax recaptures are claimed on Schedule ORASC. Enter the total from Schedule OR-ASC, line C5. Include Schedule OR-ASC with your return. 22 Other tax methods. If you qualify, you can compute your Oregon tax using any of the following methods: Farm income averaging method. Did you have income from a farm? You may use the federal farm income averaging method to compute your Oregon tax even if you didn’t use farm income averaging on your federal return. Use Schedule OR-FIA-40 to compute the Oregon tax using this method. You can download it from our website or contact us to order it. Credits—Nonrefundable Nonrefundable credits can’t be more than your Oregon tax liability. Carryforward credits allow you to claim unused amounts in a later year. Standard credits can’t be used in any other year. For more information about these and other nonrefundable credits, see Schedule OR-ASC and OR-ASC-NP Instructions or “Credits” in Publication OR-17. If you use Schedule OR-FIA-40 to calculate your tax, enter the tax amount from Schedule OR-FIA-40, line 24 and check box 20a. Don’t include Schedule OR‑FIA-40 with your return. Keep it with your records. 150-101-040-1 (Rev. 12-06-23) 16 2023 Form OR-40 Instructions Exemption credit. If your federal AGI is more than $200,000 ($100,000 if your filing status is single or married filing separately), enter 0; otherwise, use this worksheet to figure your exemption credit. Oregon income tax withheld. Enter the total Oregon tax withheld from your wages and other income. State tax withheld from wages is shown in box 17 of Form W-2 and in the State area of various 1099 forms. Don’t include FICA (Social Security) tax withheld or tax withheld from your wages by other states. You must include a legible, unaltered copy of your Form W-2 from each job and any Form 1099 showing Oregon income tax withheld with your Oregon return. 25 32 Exemption credit worksheet 1. If your federal AGI is more than $100,000 and your filing status is single or married filing separately, or more than $200,000 for all others, enter 0; otherwise, enter the number of “regular” exemptions from lines 6a and 6b plus the number of dependents from line 6c. 1. 2. If your federal AGI is more than $100,000, enter 0; otherwise, enter the number of “Severely disabled” exemptions from line 6a and 6b. 2. 3. If your federal AGI is more than $100,000, enter 0; otherwise, enter the number of exemptions for children with a qualifying disability from line 6d. 3. 4. Add lines 1, 2, and 3. 4. 5. Line 4 times $236. This is your exemption credit. 5. If you don’t have a Form W-2 or 1099, you must provide other proof of Oregon tax withheld. Proof may include a copy of a final paycheck stub or a letter from your employer. If you file before February 1, 2024, we can only accept a Form W-2 or 1099 as proof. If you have tax to pay, you may want to increase the amount your employer or other payer withholds from your wages. For withholding information, go to ­www.oregon.gov/dor. Amount applied from your prior year’s tax refund. Enter the amount of any prior-year refund you applied as a payment of 2023 estimated tax. If we adjusted your applied refund, be sure to use the adjusted amount. If you need to verify your applied refund amount, log into or create your Revenue Online account at ­­www.oregon.gov/dor or contact us. 33 Estimated tax payments for 2023. Enter the total estimated tax payments you made before April 15, 2024. For calendar-year filers, these payments were due April 18, 2023; June 15, 2023; September 15, 2023; and January 16, 2024. If you're filing on extension, include any extension payment made on or before the due date (without extensions), but don't include any payments made after April 15, 2024. Don’t include the amount reported on line 33. If you need to verify your estimated payments, log into or create your Revenue Online account at ­­www.oregon.gov/dor or contact us. 34 Political contribution credit. If your federal AGI isn’t more than $75,000 ($150,000 if you’re filing a joint return), you may claim a standard credit of up to $50 ($100 if you’re filing a joint return) for cash contributions you made during 2023 to any: 26 • Qualified political party. • Qualified candidate for federal, state, or local elective office, or the candidate’s campaign, for an election in Oregon. • Political action committee certified in Oregon. Refundable credits Refundable credits reduce the amount of tax that you owe. Any amount that is more than your tax liability is treated the same way as an overpayment. Refundable credits not explained here are claimed on Schedule OR-ASC. Total standard credits from Schedule OR-ASC. All other standard credits are claimed on Schedule OR-ASC. Enter the total from Schedule OR-ASC, line D16. Include Schedule OR-ASC with your return. 27 For more information about refundable credits, see Schedule OR-ASC and OR-ASC-NP Instructions or “Credits” in Publication OR-17. Total carryforward credits from Schedule ORASC. All carryforward credits are claimed on Schedule OR-ASC. Enter the total from Schedule ORASC, line E9. Include Schedule OR-ASC with your return. 30 150-101-040-1 (Rev. 12-06-23) Tax payments from a pass-through entity (PTE). If you're an owner of a PTE that paid estimated tax for its owners, enter the amount of tax payments made by the PTE on your behalf. 35 17 2023 Form OR-40 Instructions Note: Do not include the PTE elective tax (PTE-E tax) credit on this line. Refer to Publication OR-17 for more information about the PTE-E tax credit. Credit amount. The Oregon Kids Credit is up to $1,000 per qualifying dependent. * Note for divorced, separated, or unmarried parents: Special rules apply when the exemption for a child is released by the parent with whom the child lives for most of the year to the other (noncustodial) parent: income credit. Oregon’s earned 36 Earned income credit is a percentage of the earned income tax credit (EITC) claimed on your federal return. The percentage is based on the age of your youngest dependent at the end of the tax year. Note to RDPs: You may claim this credit if you would otherwise qualify for the EITC using your “as if” federal return. • If a child is listed as a dependent on your Oregon return only because the custodial parent released the child’s exemption to you, the child doesn’t qualify for this credit. • A child whose exemption was released to the noncustodial parent, but who otherwise qualifies as your dependent, qualifies for this credit even if the child isn’t listed as your dependent on your Oregon return due to the released exemption. Note: If you can't claim the federal EITC or can only claim a portion of the federal EITC because you, your spouse, or your child(ren) do not have an SSN that is valid for work or are using an ITIN, you may qualify for the earned income credit for ITIN filers. See Schedule OR-EIC-ITIN Instructions or Publication OR-17 for additional information. Instructions for Oregon Kids Credit worksheet. Line 3. This is your qualifying income. If this line is $30,000 or more, you can’t claim the Oregon Kids Credit. Use Table 6 and the following worksheet to figure your credit. Line 10. Your qualifying income includes losses deducted from your federal AGI on your Form 1040, for losses over $20,000. Enter losses claimed on your Form 1040 and Schedule OR-ASC (using subtraction codes 321, 355, 356, or 357), as listed on lines 10a through 10g, and the total of those losses on 10h. If the amount shown on the referenced Form 1040 line is not a loss, do not enter it on the worksheet. Enter all losses as positive numbers. Table 6. EIC percentage Age of youngest dependent at end of tax year Percentage of federal EITC At least 3 years old, or no dependents 9 percent (0.09) Younger than 3 12 percent (0.12) Earned income credit worksheet 1. Enter your federal EITC from Form 1040 or 1040‑SR, line 27. 2. Enter the percentage from the table as a decimal. 3. Line 1 times line 2. This is your Oregon earned income credit. Example 1. Colten reported additional income from rental real estate on his Form 1040, Schedule 1, line 5 of $8,000. He also reported his farm loss on his Form 1040, Schedule 1, line 6 of $6,000. Colten enters 0 on line 10d for rental real estate, as he did not have a loss reported on his Form 1040 on Schedule 1, line 5. He enters 6,000 on line 10e, as he did report a farm loss on his Form 1040, Schedule 1, line 6. Colten enters his total losses of $14,000 on line 10h. He enters 0 on line 10, since his total losses minus 20,000 are less than 0. 1. 2. 3. Oregon Kids Credit. The Oregon Kids Credit is available for low-income taxpayers with dependents age 5 or younger on their Oregon tax return. 37 Example 2. Michaela reported a business loss on her Form 1040, Schedule 1, line 4 of ($15,500). She would enter $15,500 on line 10b of the worksheet. She had a rental real estate loss reported on her Form 1040, Schedule 1, line 5 of ($8,000). She enters $8,000 on line 10d of the worksheet. She has no other losses reported. Michaela enters her total losses of $23,500 on line 10h. She enters $3,500 on line 10 (23,500 - 20,000). Eligibility. To be eligible for the Oregon Kids Credit, you must: 1. Have a filing status of single, marri
Extracted from PDF file 2023-oregon-form-or-40-instructions.pdf, last modified January 2024

More about the Oregon Form OR-40 Instructions Individual Income Tax TY 2023

We last updated the Individual Income Tax Return Instructions for Full-year Residents in January 2024, so this is the latest version of Form OR-40 Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form OR-40 Instructions directly from TaxFormFinder. You can print other Oregon tax forms here.


eFile your Oregon tax return now

eFiling is easier, faster, and safer than filling out paper tax forms. File your Oregon and Federal tax returns online with TurboTax in minutes. FREE for simple returns, with discounts available for TaxFormFinder users!

File Now with TurboTax

Related Oregon Individual Income Tax Forms:

TaxFormFinder has an additional 50 Oregon income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Oregon Form OR-40 Instructions.

Form Code Form Name
Form OR-40N Instructions Individual Income Tax Return Instructions for Nonresident / Part-year Resident

Download all OR tax forms View all 51 Oregon Income Tax Forms


Form Sources:

Oregon usually releases forms for the current tax year between January and April. We last updated Oregon Form OR-40 Instructions from the Department of Revenue in January 2024.

Show Sources >

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Oregon Form OR-40 Instructions

We have a total of three past-year versions of Form OR-40 Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Form OR-40 Instructions

2023 Publication OR-40-FY, Oregon Income Tax Full-Year Resident Forms and Instructions, 150-101-040-1

2022 Form OR-40 Instructions

2022 Publication OR-40-FY, Oregon Income Tax Full-Year Resident Forms and Instructions, 150-101-040-1

2021 Form OR-40 Instructions

2021 Publication OR-40-FY, Oregon Income Tax Full-Year Resident Forms and Instructions, 150-101-040-1


TaxFormFinder Disclaimer:

While we do our best to keep our list of Oregon Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.

** This Document Provided By TaxFormFinder.org **
Source: http://www.taxformfinder.org/oregon/form-or-40-instructions