Oregon Individual Income Tax Return Instructions for Nonresident / Part-year Resident

Individual Income Tax Return Instructions for Nonresident / Part-year Resident
2023 Publication OR-40-NP, Oregon Income Tax Part-year Resident/Nonresident Forms and Instructions, 150-101-048-1
2023 Oregon Income Tax

Form OR-40-N and Form OR-40-P Instructions
 Nonresident/Part-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
150-101-048-1 (Rev. 11-01-23)

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
	 What does income from Oregon sources include?.....5
	Residency..........................................................................6
	 What form do I use?........................................................6
	 Military personnel...........................................................7
	 What if I need more time to file?...................................7
	 P	enalties............................................................................7
	 2024 estimated tax...........................................................8
	 What if I need to change my Oregon return
		 after filing?.....................................................................8
General instructions for Forms OR-40-N
and OR-40-P.......................................................................10
	 Check the boxes.............................................................10
	 Name and address......................................................... 11

	 Filing status.................................................................... 11	
	Exemptions.....................................................................12
Federal column instructions, lines 7F–29F...................14
Oregon column instructions, lines 7S–29S...................14
	Adjustments...................................................................16
	Additions........................................................................17
	Subtractions....................................................................17	
	 Oregon percentage........................................................17	
	 Deductions and modifications....................................18
	 Oregon tax......................................................................21
Tax rate charts...................................................................21
	Credits—nonrefundable...............................................22	
	 Tax payments and refundable credits........................23
	 Penalties and interest....................................................29
	 Amount due and payment options.............................30
	Refund.............................................................................30
	 Direct deposit.................................................................31
	 Before you file................................................................32
	 Avoid processing delays...............................................33
	 Tax return mailing addresses......................................33

Do you have questions or need help?
Internet
­­­­www.oregon.gov/dor
•	 Download forms, instructions, and publications.
•	Access additional information not included in these
instructions.

Revenue Online
­­­­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.

Email or write
­ [email protected]
q
­[email protected]
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

Phone
503-378-4988 or 800-356-4222
	 Monday–Friday, 7:30 a.m.– 5 p.m.
	 Closed Thursdays from 9:00–11:00 a.m and closed on
holidays. Wait times may vary.
Contact us for ADA accommodations or assistance in other
languages.

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

Taxpayer Advocacy
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: Toketee Falls in Douglas County on the North Umpqua River, located approximately 58 miles east of Roseburg near Oregon Route 138.
150-101-048-1 (Rev. 11-01-23) 	2

2023 Form OR-40-N and Form OR-40-P Instructions

Electronic 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:

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.

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.
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 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

150-101-048-1 (Rev. 11-01-23) 	3

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.
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.

2023 Form OR-40-N and Form OR-40-P 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 OR-40-N, line 62,
or OR-40-P, line 61.
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.
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
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

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.
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.
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.
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 40.

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.”
Federal return. You must include a copy of your federal Form 1040 or 1040‑SR with 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.
Schedule OR-ASC-NP. If you’re claiming an adjustment,
addition, subtraction, modification, tax recapture, or
credit using a code listed in Publication OR-CODES,
150-101-048-1 (Rev. 11-01-23) 	4

you must include Schedule OR-ASC-NP. Without this
information, we may disallow or adjust your claim.
Schedule OR-ASC-NP and Publication OR-CODES are
available at ­­
www.oregon.gov/dor/forms or you can
contact us to order them.
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.
2023 Form OR-40-N and Form OR-40-P Instructions

General information
Do I need to file an Oregon return?

How long will it take to get my refund?

You need to file an Oregon income tax return if your
Oregon-source income and income received while an
Oregon resident is more than your standard deduction.
See Table 1.

Return processing times vary due to many factors,
including the complexity of your return.

If your Oregon income is less than your standard deduction, you’re not required to file a return for Oregon.

Paper returns must have all required Oregon schedules, proof of tax withheld, and a copy of your federal
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.

However, you must file an Oregon return if you had
$1 or more of Oregon income tax withheld from your
wages and you want to claim a refund, or if you qualify
to claim a refundable credit.
Full-year residents. Oregon taxes your income from all
sources.

Electronically filed returns are generally received and
processed faster.

Returns mailed closer to April 15, when we receive the
most returns, can take longer to process.

Part-year residents. Oregon taxes your income from all
sources earned or received while you were an Oregon
resident. Oregon also taxes your income from Oregon
sources while you were a nonresident.

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.

Nonresidents. Oregon taxes only your income from
Oregon sources.

To check the status of your refund, click on “Where’s
my refund?” at www.oregon.gov/dor/personal.
­­

Nonresident trusts. If you file federal Form 1040‑NR
for a trust, you must file Oregon’s fiduciary return,
Form OR-41. Don’t file an Oregon Form OR-40-N.
Table 1. Filing thresholds
You must file an Oregon income tax return if:
And your
Oregon gross
income is
Your filing status is—
more than—
Can be claimed on another’s return
$1,250*
Single
$2,605
Married filing jointly
$5,210
Married filing separately
• If spouse claims standard deduction
$2,605
• If spouse itemizes deductions
0
Head of household
$4,195
Qualifying surviving spouse
$5,210
*The larger of $1,250, or your earned income plus $400,
up to the standard deduction amount for your filing status.

150-101-048-1 (Rev. 11-01-23) 	5

What does income from Oregon
sources include?
Oregon income includes income shown on your federal
return for services performed in Oregon.
If you have wages from an Oregon employer and
you performed services for your employer in Oregon
and another state while you were a nonresident, and
your Oregon wages aren’t stated separately on your
Form W-2, compute your Oregon-source income using
the formula for line 7S.
Other Oregon sources of income (and losses) include:
•	Businesses, partnerships, limited liability companies
taxed as partnerships, and S corporations located or
doing business in Oregon or providing services to
Oregonians.
•	Unemployment insurance benefits received because
of an Oregon job.
•	Severance pay received because of an Oregon job.
•	Farms located in Oregon.

2023 Form OR-40-N and Form OR-40-P Instructions

•	Estates and trusts in Oregon or that have Oregon
property or businesses.
•	Oregon State Lottery.
•	Sale of Oregon property.
•	Rents and royalties for use of Oregon property.
•	Community property. If you’re a resident of Oregon
and your spouse is a resident of a state with community property laws, you may be taxed on part of
your spouse’s income. Community property laws in
the state where your spouse lives determine if you’re
taxed on any of your spouse’s income.
•	Global intangible low-taxed income (GILTI) if you
were an Oregon resident on the date you received it
(actual or deemed), or if it’s from property employed
in a business, trade, profession, or occupation carried
on in Oregon while a nonresident.
Income not considered from Oregon sources includes:
•	Interest and dividends. However, you must include
them in Oregon income if they were:
—From an Oregon business you own.
—Received during the part of the year you were a
resident.
—Passed through from an S corporation or partnership doing business in Oregon.
•	Oregon retirement income received while you were
a nonresident unless you were domiciled in Oregon.
See “Retirement income” in Publication OR-17.
•	Interstate transportation wages from an interstate
railroad company, interstate motor carrier, air carrier,
or interstate motor private carrier. You must be a nonresident and have regularly assigned duties in more
than one state. See “Interstate transportation wages”
in Publication OR-17.
•	Waterway, air carrier, or hydroelectric dam compensation, if you’re a nonresident:
—	Working as crew or pilot on a vessel in navigable
waters between Oregon and another state.
—	Working as crew or pilot on an aircraft in Oregon
and at least one other state.
—	Working on a dam that spans a river between Oregon and another state.
	 Note: See the “Income” section in Publication OR-17
for more details regarding waterway, air carrier, and
dam workers’ compensation.
• Military pay of a nonresident.
•	Winnings of a nonresident from tribal gaming centers in Oregon.
• Wages earned by a nonresident military spouse who
is in Oregon only to be with the service member who
is stationed here.
150-101-048-1 (Rev. 11-01-23) 	6

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.
•	You’re still a full-year resident if:
—	You temporarily moved out of Oregon or
—	You moved back to Oregon after a temporary
absence.
	 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.
•	You’re a nonresident if your permanent home was
outside Oregon all year.
•	You’re a part-year resident if you moved into or out
of Oregon during 2023. You’re not considered a partyear resident if:
—	You temporarily moved out of Oregon, or
—	You moved back to Oregon after a temporary
absence.
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.
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.

What form do I use?
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.
2023 Form OR-40-N and Form OR-40-P Instructions

•	You qualified as an Oregon resident living abroad for
part of the year.
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.
Use Form OR-40 if any ONE of the following is true:
• You’re a full-year resident not filing a joint return; or
• You and your spouse are both full-year residents filing jointly.
Form OR-40 is available at w
­ ww.oregon.gov/dor/forms
or you can contact us to order it.

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.
Military spouses. Federal law does not allow Oregon
to tax your wages if you’re a nonresident and you’re in
Oregon only to be with your spouse who is stationed
in Oregon. If you are domiciled in Oregon and you
file a joint return with your spouse who 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.
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.
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.
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).
150-101-048-1 (Rev. 11-01-23) 	7

Filing for a deceased person
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?”. 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.
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.

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.
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?
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.
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 Form OR40-N, line 68 or Form OR-40-P, line 67.
Don’t forget to check the “Extension filed” box on
your return when you file. File your return by October 15, 2024.

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
2023 Form OR-40-N and Form OR-40-P Instructions

return. Oregon doesn’t allow an extension of time to
pay tax, even if the IRS does.
You’ll be charged a 20 percent penalty for failure 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.
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.
For more information about these and other penalties,
see the instructions for Form OR-40-N, line 68 or Form
OR-40-P, line 67, and “Interest and penalties” in Publication OR-17.

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:
•	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 and expect to owe tax of $1,000
or more on your 2024 return. You may want to
increase the amount your employer withholds from
your Oregon wages. For withholding information, go
to ­­www.oregon.gov/dor/personal.
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.
You can find Publication OR-ESTIMATE and payment
voucher Form OR-40-V on our website or you can contact us to order them.

150-101-048-1 (Rev. 11-01-23) 	8

Interest on underpayment of
estimated tax
You may owe interest for underpaying your estimated
tax if:
•	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.
See the instructions for Form OR-40-N, line 69, or Form
OR-40-P, line 68, and Form OR-10 Instructions for more
information.

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 self-employed
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 them electronically through Revenue Online at
­­www.oregon.gov/dor.

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 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.
•	Changes in federal or state income tax laws affect a
return you’ve already filed.
Don’t amend your Oregon return if:
•	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.
There’s a time limit for filing an amended return to
claim a refund. See the instructions for Form OR-40-N,
lines 72 to 75 or Form OR-40-P, lines 71 to 74. For more
information, see “Amended returns” in Publication
OR-17.

2023 Form OR-40-N and Form OR-40-P Instructions

How do I amend my 2023 return?
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 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 tax 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.
What if I need to change a return I filed for an earlier
year?
Refer to the instructions for the tax year you need to
amend. Visit our website or contact us if you need the
form and instructions for a different year.
How long will it take to process my amended return?
It may take six months or longer to process your
amended return.

Amended worksheet
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.
1. Amended tax after standard and 	1.
carryforward credits (amended
Form OR-40-N, line 56; Form OR40-P, line 55).
	2.
2. Amended total payments and
refundable credits (amended
Form OR-40-N, line 65; Form OR40-P, line 64).
3. Line 1 minus line 2. If less than 0, 	3.
use a minus sign.
4. Refund you already had for 2023 	4.
(original Form OR-40-N, line
72; Form OR-40-P, line 71; Form
OR-40, line 47). 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 0 or more, you owe tax; skip to
line 8.

	5.

6. Refund applications that
weren’t on your original return
(amended Form OR-40-N, lines
73 through 75; Form OR-40-P,
lines 72 through 74), 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-N, lines
73 through 75, or Form OR-40-P,
lines 72 through 74.

	6.

7. Net amended refund. Line 5 plus 	7.
line 6. This can’t be more than 0.
8. Penalty and interest on amended
tax to pay (amended Form OR40-N, line 68; Form OR-40-P,
line 67).

	8.

9. Total amended amount you owe.
Line 5 plus line 8.
10. Payments made on or after April
15, 2024.

9.

11. Total amount to pay with your
amended return. Line 9 minus
line 10.
150-101-048-1 (Rev. 11-01-23) 	9

10.
	11.

2023 Form OR-40-N and Form OR-40-P Instructions

General instructions for
Forms OR-40-N & OR-40-P
Step 1: Complete your federal return
Your Oregon tax is determined using the ratio of your
Oregon-source income to your entire federal income.
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).
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. We may ask you for copies of other schedules or
additional information later.
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.
For more information on how to file as an RDP, go to
­­­www.oregon.gov/dor and search for “RDP.”

Step 2: Select the appropriate Oregon return
To decide which form to use, see “What form do I use?”
in the “General information” section.

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.

Fiscal-year filers
Write the ending date of your fiscal year in the “Fiscal
year ending” box on the return.

Oregon resident—Form OR-40-P only
Enter the dates you were an Oregon resident during
2023. For example, “from 01/01/2023 to 04/15/2023,” or
“from 03/01/2023 to 12/31/2023”
150-101-048-1 (Rev. 11-01-23) 	10

Check the boxes
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.

Calculated using “as if” federal return
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.

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
Check this box if you’re deferring gain on like-kind
property that was exchanged or converted. You’ll
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.

Form OR-243
Check this box if you are attaching Form OR-243, Claim
to Refund Due a Deceased Person.

Federal Form 8379
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.
2023 Form OR-40-N and Form OR-40-P Instructions

Federal Form 8886
Check this box if you filed federal Form 8886, Reportable Transaction Disclosure Statement.

Disaster relief
If you were affected by a presidentially-declared natural disaster in 2023, check this box.

Military
Check this box if you’re a nonresident with military
pay. See “Military personnel.”

Employment exception
Check this box if you have interstate transportation
wages or you’re a waterway, air carrier, or hydroelectric
dam worker. See the exceptions in the instructions for
line 7S and the “Income” section in Publication OR-17
for more information.

Name and address
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.
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.
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 11 of
your return.
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.
If you’ve applied for an ITIN but you haven’t received
it yet:
• 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.
150-101-048-1 (Rev. 11-01-23) 	11

•	Once the IRS issues your ITIN, mail a copy of
your ITIN letter to us at PO Box 14999, Salem OR
97309-0990.
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.

Filing status
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

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.
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.
Table 2. Spouses with different residency status
Spouses’
residency
status:

If you file
a joint
return, use:

If you file
separate
returns:

Part-year and
nonresident

OR-40-N

Nonresident and
full-year resident

OR-40-N

Part-year and
full-year resident

OR-40-P

Each spouse uses
the form that
matches their
individual
residency status

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:
Your share of federal AGI
Joint federal AGI

=

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:
•	 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.
2023 Form OR-40-N and Form OR-40-P Instructions

•	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.

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.

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.

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.

If possible, mail both spouses’ Oregon returns in the
same envelope. Don’t staple the returns together.
For more information, see “Filing status” in Publication
OR-17.

Exemptions

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

6a & 6b Yourself and spouse. If no one else
can claim you as a dependent on their
return, check the “Regular” exemption box below line
6a for yourself; otherwise, check the “Someone else can
claim you as a dependent” box below line 6a, even if the
other person doesn’t actually claim you as a dependent.

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.

Check the “Regular” exemption box below line 6b if
no one else can claim your spouse as a dependent and
you’re filing as:

Include Schedule OR-ADD-DEP with your return. You
can download the schedule from our website or contact
us to order it.

•	Married filing jointly.
•	Married filing separately and your spouse has no
income.

On line 6c, enter the total number of your dependents, including the number from line 1 of Schedule
OR-ADD-DEP.

Otherwise, check the “Someone else can claim you as a
dependent” box below line 6b, even if the other person
doesn’t actually claim your spouse as a dependent.
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.

150-101-048-1 (Rev. 11-01-23) 	12

Table 3. Relationship codes
Title
Child
Stepchild
Foster child
Sibling

Code
SD
SC
FC
SB

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.

2023 Form OR-40-N and Form OR-40-P Instructions

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

•	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:
—	Autism spectrum disorder.
—	Communication disorder.
—	Deafblindness.
—	Developmental delay.
—	Emotional disturbance.
—	Hearing impairment (including deafness).
—	Intellectual disability.
—	Orthopedic impairment.

150-101-048-1 (Rev. 11-01-23) 	13

—	Other health impairment.
—	Specific learning disability.
—	Traumatic brain injury.
—	Visual impairment (including blindness).
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:
•	The child’s Individualized Education Program (IEP).
•	 The child’s Individualized Family Service Plan (IFSP).
Keep the statement and cover sheet with your records.
Check the “Check if child has a qualifying disability“
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.
Total exemptions. Add lines 6a through 6d and
enter the total on line 6e. This is your total number of exemptions.

6e

2023 Form OR-40-N and Form OR-40-P Instructions

Forms OR-40-N and OR-40-P
line instructions
Don’t enter cents. You must round off cents to the
nearest whole 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.

Full-year residents. Oregon taxes your income from
all sources. If you’re a full-year resident filing jointly
on Form OR-40-N or Form OR-40-P, all of your income
in the federal column must be included in the Oregon
column.

The forms have two columns for figures. These are to
show your federal adjusted gross income (AGI), additions, and subtractions. The columns compare your total
(column F) to the portion that Oregon taxes (column S).

Wages, salaries, and other pay for work. Partyear residents—enter amounts you earned
while an Oregon resident and any amounts you earned
working in Oregon while you were a nonresident.

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
return, items claimed on your return may be adjusted
or denied.

Full-year residents—enter all of your income included
in the federal column.

Federal column (F) instructions,
lines 7F–29F
The first column is called “Federal column (F).” For
lines 7F–29F of the federal column, transfer the amounts
you reported on your federal return. If you used Form
1040 or 1040‑SR, these will be the amounts on lines 1a
through 11 and Schedule 1, lines 1 through 26.
Line 29F, “Income after adjustments,” must match
your 2023 federal AGI from Form  1040, 1040‑SR, or
1040-NR, line 11; or Form 1040‑X, line 1C. If it doesn’t
match, check that you transferred the figures from
your federal return correctly.

Oregon column (S) instructions,
lines 7S–29S
The second column is called “Oregon column (S).” Use
this column to list the amounts from the federal column that are taxed by Oregon.
Nonresidents. Oregon taxes only your income from
Oregon sources. To determine your Oregon-source
income, see “What does income from Oregon sources
include?” in the “General information” section.
Part-year residents. Oregon taxes your income from all
sources earned or received while you were an Oregon
resident. Oregon also taxes your income from Oregon
sources while you were a nonresident. To determine
your Oregon-source income, see “What does income
from Oregon sources include?” in the “General information” section.
150-101-048-1 (Rev. 11-01-23) 	14

7S

Nonresidents—enter the amount you earned while
working in Oregon for each job. If that amount differs
from the Oregon wages on your Form W-2, request a
signed statement from your employer verifying the
number of days worked in Oregon and the total number of days worked everywhere. Keep this document
and a statement explaining your calculations with
your records. If your Oregon wages aren’t stated separately on your Form W-2, compute your Oregon-source
income using the following formula:
Days actually worked in Oregon
Days actually worked everywhere

×

Total
Oregon
wages = wages
(line 7F)
(line 7S)

Don’t include holidays, vacation days, and sick days as
days actually worked. However, you must include sick
pay, holiday pay, and vacation pay in total wages. See the
example below. If Oregon is the only state you worked
in, don’t use this formula; all your earnings are taxable
and should be reported in the Oregon column.
Example: Savannah lives in Idaho but works in Oregon.
Of her 260 total days paid, she worked 138 days in Oregon and 92 days from her home in Idaho. She received
14 days vacation pay, eight days sick pay, and eight days
holiday pay. She earned $50,000 in wages. She figured
the amount subject to Oregon tax as follows:
Total days paid
Less:	 Vacation days
	
Sick days
	Holidays

	260
	-14
	-8
	-8

Total days worked everywhere 	230
Days actually worked in Oregon
(138)
Days actually worked everywhere
(230)

×

$50,000
(Total = $30,000
wages)

2023 Form OR-40-N and Form OR-40-P Instructions

Interstate employment. Check the “Employment
exception” box on page 1 and don’t include the following types of compensation in the Oregon column of the
return if you’re a nonresident who works:

Dividend income. Determine the amount of dividends on line 9F that you received from an Oregon business activity source while you were a nonresident. This includes dividends passed through to you
from an S corporation or partnership doing business in
Oregon or providing services for Oregonians. These are
dividends your S corporation or partnership received
on the stock of another corporation. Add any dividend
income included on line 9F that you received during
the part of the year you were an Oregon resident.

•	For an interstate transportation provider and whose
wages qualify for special treatment under the federal
laws formerly known as the “Amtrak Act.”
•	On the Bonneville, The Dalles, John Day, or McNary
hydroelectric dams.
•	As a crewmember or pilot on a vessel in interstate
navigable waters.

State and local income tax refunds. If you
received an income tax refund from another
state or local government that is included in your federal income, and you deducted those taxes on a prior
year’s Oregon return, include the refund in your Oregon income. This refund is not taxable to Oregon if you
did not deduct the taxes on an Oregon return.

If you’re a nonresident who works as a crewmember or
pilot on aircraft in Oregon and at least one other state,
you may be able to exclude your compensation from
the Oregon column.

Oregon doesn’t tax Oregon state income tax refunds
you received, so don’t include amounts received from
Oregon on line 10S.

Savannah’s compensation reported in the federal column, Form OR-40-N, line 7F is $50,000 and in the Oregon column, Form OR-40-N, line 7S is $30,000.

Exceptions

See the “Income” section of Publication OR-17 for
details about these exceptions.
Military. Check the “Military” box on page 1 of the
return if you’re a:
•	Nonresident member of the U.S. Armed Forces stationed in Oregon. Military pay of a nonresident isn’t
Oregon-source income. Don’t report your military
pay in the Oregon column on line 7S. If you have
another job, those wages are taxable to Oregon and
must be included on line 7S. Only your military pay
is exempt.
•	Nonresident military spouse. Your wages are exempt
from state tax if you’re only in Oregon because your
spouse is stationed here. Don’t report your wages in
the Oregon column on line 7S. File Form OR-40-N
if you had non-wage Oregon income or to claim a
refund of Oregon tax withheld from wages.
	 If Oregon taxes were withheld from your exempt
wages, you should file a new withholding form with
your employer. Use Form OR-W-4 and follow the
instructions to declare that you’re exempt using the
appropriate code and give the form to your employer.
You can download Form OR-W-4 and instructions
from our website or you can contact us to order it.
Taxable interest income. Determine the amount
of interest income on line 8F that you received
from an Oregon business activity while you were a
nonresident. Add any interest included on line 8F that
you received during the part of the year you were an
Oregon resident.

8S

150-101-048-1 (Rev. 11-01-23) 	15

9S

10S

Alimony received. Enter alimony you received
for the part of the year you were an Oregon
resident.

11S

Business income or loss. Determine the amount
of income or loss from an Oregon business activity for the part of the year you were a nonresident. Add
all business income or losses incurred during the part
of the year you were a resident of Oregon.

12S

Capital gain or loss. Determine the amount of
gain or loss and capital gain distributions from
Oregon sources for the part of the year you were a nonresident. Add the amount of your capital gains received
and losses incurred during the part of the year you
were an Oregon resident. Limit losses to $3,000 ($1,500
if married filing separately).

13S

Other gains or losses. Determine the amount of
gain or loss from Oregon sources for the part of
the year you were a nonresident. Add the gain received
or loss incurred during the part of the year you were an
Oregon resident.

14S

IRA distributions. Determine the amount of any
taxable individual retirement arrangement (IRA)
distributions you received while an Oregon resident.
Include any amounts you converted from a regular IRA
into a Roth IRA while you lived in Oregon. If you lived
in another state when you made contributions to your
IRA, you may need more information. If so, contact us.

15S

Pension and annuities. Enter the amount of taxable pensions and annuities (including federal
pensions), you received while an Oregon resident. Don’t
include any Railroad Retirement Benefits (RRB-1099-R).

16S

2023 Form OR-40-N and Form OR-40-P Instructions

If you’re domiciled in Oregon, you must also include
any Oregon-source pensions you received. This is true
even though you may qualify to file as a nonresident
under the tests for special case Oregon residents or
Oregon residents living abroad.
For example, if you lived in Oregon before you retired
and have not changed your permanent home to
another state, you must report the pension you earned
while you worked in Oregon. If you have a federal pension, you may qualify for a subtraction on Schedule ORASC-NP. If you need help, contact us.
Schedule  E income. Determine the income
received and losses incurred from rents, royalties, partnerships, S corporations, real estate investment trusts (REITs), estates, trusts, etc. reported on federal Schedule E from Oregon sources during the part
of the year you were a nonresident. Add the amount
received or incurred during the part of the year you
were an Oregon resident.

17S

income or loss. Determine the amount
18S Farm
of income received or loss incurred from an
Oregon farm while you were a nonresident. Add the
amount of farm income received or loss incurred during the part of the year you were an Oregon resident.

19S

Unemployment insurance (UI) benefits and all
other taxable income. Include on line 19S:

•	UI benefits received from an Oregon job or while an
Oregon resident,
•	Oregon Lottery winnings (see additional information below),
•	Other winnings received while an Oregon resident,
•	Severance pay received from an Oregon job or while
an Oregon resident, and
•	Any other taxable income on line 19F from Oregon
sources or received while an Oregon resident.
Don’t include Social Security, Railroad Retirement
Board benefits, or Railroad Retirement Board unemployment benefits, as Oregon doesn’t tax this income.
Include all payments received from the Oregon Lottery in the Oregon column. Oregon Lottery means all
games offered by the Oregon State Lottery Commission and purchased in Oregon. For more information,
see Publication OR-17.

Adjustments
IRA or self-employed SEP and SIMPLE contributions. Oregon follows the federal definition
of earned income and compensation used to calculate your IRA and other retirement plan deductions.

21S

150-101-048-1 (Rev. 11-01-23) 	16

Determine the amount you paid during the part of the
year you were an Oregon resident. Add the amount calculated for the time you were a nonresident.
•	IRA. Use the following formula to determine
your deduction for the part of the year you were a
nonresident:
Oregon earned income
while a nonresident
Total earned income
while a nonresident

IRA
contributions
Nonresident
×
=
made while a
deduction
nonresident

•	Self-employed SEP, SIMPLE, and qualified plans.
Use the following formula to determine your allowable deduction for the part of the year you were a
nonresident:
Oregon compensation
while a nonresident
Total compensation
while a nonresident

Contributions
Nonresident
× made while a =
deduction
nonresident

	 This deduction can’t be more than the amount of
compensation included in the Oregon column.
Education deductions. The following instructions will help you figure the amount you can
claim on your Oregon return.

22S

•	Educator expenses deduction from federal Form
1040 or 1040‑SR, Schedule 1, line 11. For the part of the
year you were a nonresident, determine the amount
of qualified educator expenses you paid while working in or providing educator services to students in
Oregon elementary or secondary schools. Add the
qualified educator expenses you paid during the part
of the year you were an Oregon resident. Enter the
smaller of the result or the amount deducted on your
federal return.
•	Student loan interest deduction from federal Form
1040 or 1040‑SR, Schedule 1, line 21.
	 Use the following formula to calculate your deductions for the part of the year you were a nonresident:
Oregon-source income
while a nonresident

Student
loan interest
Nonresident
×
=
paid while a
deduction
Total income from all
nonresident
sources while a nonresident

	 Add all interest paid during the part of the year
you were an Oregon resident. Enter the result or the
amount of federal student loan interest from your
federal return, whichever is less.
	 Add the Oregon amounts for your educator expenses
deduction and student loan interest deduction. Enter
the total on line 22S.

2023 Form OR-40-N and Form OR-40-P Instructions

Moving expenses. Enter moving expenses in the
Oregon column only if all of the following are
true for you (or your spouse, if filing jointly):

23S

• You are on active duty in the United States Army,
Navy, Air Force, Marines, or Coast Guard.
• Your expenses are deductible on your federal return
because they are related to a permanent change of
station (known as a PCS move).
• Your new duty station is in Oregon.
• You have taxable income from employment (military,
civilian, or self-employment) performed in Oregon.
Deductions for self-employment tax. Use the
following formula to determine the amount of
your self-employment tax on earnings taxed by Oregon:

24S

Self-employment earnings
taxed by Oregon
Total taxable selfemployment earnings

Federal
deduction
Oregon
×
for self=
deduction
employment
tax

The Oregon deduction can’t be more than the federal
deduction.

25S

Self-employed health insurance deduction. Oregon allows a deduction of 100 percent of your health
insurance premiums related to your self-employment
for the part of the year you were an Oregon resident.
Add the health insurance premiums paid by your Oregon business while a nonresident. Your total Oregon
deduction can’t be more than your federal deduction.
Alimony paid. Determine if the alimony you
paid to your former spouse is deductible for federal purposes. If so, use the following formula to calculate your Oregon deduction for the part of the year you
were a nonresident:

26S

Oregon-source income
while a nonresident
Total income
while a nonresident

Alimony
Nonresident
× paid while a =
deduction
nonresident

Add to that amount the alimony you paid while you
were a resident.
Total adjustments from Schedule OR-ASC‑NP.
Other adjustments not explained here are
claimed on Schedule OR-ASC-NP. From Schedule ORASC-NP, enter the total on line A7 in the federal column and the total on line A8 in the Oregon column.
If you’re reporting an adjustment, you must include
Schedule OR-ASC-NP with your return.

27F/S

For more information about adjustments, see Schedule OR-ASC and OR-ASC-NP Instructions or “Adjustments” in Publication OR-17.
150-101-048-1 (Rev. 11-01-23) 	17

Additions
Total additions from Schedule OR-ASC-NP. Additions are reported on Schedule OR-ASC-NP.
From Schedule OR-ASC-NP, enter the total on line B7 in
the federal column and the total on line B8 in the Oregon column. If you’re reporting an addition, you must
include Schedule OR-ASC-NP with your return.

30F/S

For more information about additions, see Schedule
OR-ASC and OR-ASC-NP Instructions or “Additions”
in Publication OR-17.

Subtractions
Social Security and tier 1 Railroad Retirement
Board benefits. Enter Social Security and tier
1 Railroad Retirement Board benefits you included on
line 7F or 19F.

32F

If you have tier 2, windfall/vested dual, or supplemental Railroad Retirement Board benefits, these are subtracted on Schedule OR-ASC-NP. For more information,
see Schedule OR-ASC and OR-ASC-NP Instructions or
“Subtractions” in Publication OR-17.

33F/S

Total subtractions from Schedule OR-ASC‑NP.
Other subtractions not explained here are claimed on
Schedule OR-ASC-NP. From Schedule OR-ASC-NP,
enter the total on line C7 in the federal column and the
total on line C8 in the Oregon column. If you claim a
subtraction on Schedule OR-ASC-NP, you must include
the schedule with your return.
For more information about subtractions, see Schedule
OR-ASC and OR-ASC-NP Instructions or “Subtractions” in Publication OR-17.
Oregon percentage. In most cases, to find
your Oregon percentage, divide the amount on
line  34S by the amount on line 34F. If the amount on
line 34S is more than the amount on line 34F or if the
amount on line 34S is positive but the amount on line
34F is zero or negative, your Oregon percentage is 100
percent. If both amounts are negative, treat both as if
they’re positive, and then:

35

• If the Oregon number is smaller than the federal
number, your Oregon percentage is 100 percent.
• If the federal number is smaller than the Oregon
number, divide the federal number by the Oregon
number.
Round the decimal to three places and enter the result
as a percentage as shown in the examples. Don’t enter
more than 100 percent or less than 0.
2023 Form OR-40-N and Form OR-40-P Instructions

Table 4. Oregon percentage examples
Line 34S
Line 34F
Oregon percentage line 35
$8,000 ÷ $30,000 =
0.266666 Round to 0.267
7 %)
( __ 2__ 6__ .__
$20,000 ÷ $15,000 =
1.333 Limited to 1.000
0 %)
( 1__ 0__ 0__ .__
-$1,000 ÷ $15,000 =
0 (0%)
0 %)
( __ __ 0__ .__
$1,000 ÷
-$5,000 =
(100%)
0 %)
( 1__ 0__ 0__ .__
-$2,000 ÷ -$8,000 = Oregon number smaller than
2,000
8,000
federal number
0 %)
( 1__ 0__ 0__ .__
-$10,000 ÷ -$6,000 = Federal number smaller than
10,000
6,000
Oregon number
6,000 / 10,000 = 0.6
0 %)
( __ 6__ 0__ .__

Deductions and modifications
Deductions and other modifications further adjust your
Oregon taxable income. Modifications not explained
here are reported on Schedule OR-ASC-NP. For more
information about deductions and modifications, see
Schedule OR-ASC and OR-ASC-NP Instructions, or
Publication OR-17.
In general, you can claim Oregon itemized deductions or
the standard deduction, whichever is larger,