Oregon Individual Income Tax Return Instructions for Full-year Residents

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) 	

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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

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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

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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
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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.
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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.
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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.
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	2.

	3.
	4.

	5.

	6.

	7.
8.

9.
10.
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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