PDF document

- 1 -

                         Metro Supportive Housing Services Personal Income Tax 
                         2023 Form MET-40 Personal Income Tax Return Instructions 
                                                                  Full Year Resident 

                                                                          Individuals Required to File a Full-Year Metro 
Important Updates                                                         Supportive Housing Services (SHS) Tax Return. Every 
                                                                          full-year resident of Metro who is required to file an Oregon 
Withholding Information.                    If your employer withheld the income tax return for the  taxable year and  who reports 
Metro tax from your wages, this will be reported in boxes 18,             Oregon taxable income over $200,000 using Oregon filing 
19, and 20 of your W-2. To claim your withholding credit,                 status married filing jointly, head of household or qualifying 
complete Schedule WH and submit a copy of your W-2(s)                     surviving spouse, or over $125,000 using Oregon  filing 
with your return. Each W-2 may consist of multiple pages,                 status single or married filing separately is required to file a 
and local jurisdiction information might not be reported on               Metro full-year personal income tax return. 
page 1 of your W-2 and may be reported on subsequent 
pages. Certain employers use “Total City” in Box 20 on page               Residency. You are a full-year Metro resident if you live 
1 of the  W-2 to report the total  of both  the  Metro and                within Metro for the  entire year. You are also a full-year 
Multnomah County jurisdictions. “Total                  City”  is not     Metro resident, even if you live outside of Metro, if all of the 
equivalent to Metro withholding, which will be reported with              following are true: you consider Metro as your permanent 
the locality name “Metro” in Box 20 on subsequent pages.                  home; Metro is the center of your financial, social, and 
On Schedule WH, report the values from boxes 18 and 19                    family life; and Metro is the place you intend to return after 
that correspond to where box 20 lists “Metro” as the locality.            an absence. You  are still a full-year  resident if you 
                                                                          temporarily move out of Metro or move back to Metro after 
Failure to submit a copy of your W-2(s) or failure to respond             a temporary absence. An  individual must be an Oregon 
to  our  requests  for  additional  documents  to  verify  W-2            resident for taxable purposes to be a Metro resident.  To 
information may mean that your Metro withholding cannot                   determine if your place of  residence  is located within the 
be verified. This may cause delays in your return processing 
                                                                          Metro tax jurisdiction, utilize the  Metro boundary address 
or removal of the withholding claim from your return. 
                                                                          lookup tool at gis.oregonmetro.gov/metro-boundary-lookup. 

Contact your employer to  request a corrected  W-2 if you                 Payment Deadline. The payment deadline for this return is 
believe there are errors on your W-2.                                     April 15, 2024. 

General           Information                                             Filing Deadline . The filing deadline for this return is April 
                                                                          15, 2024. 
File and Pay Online and Manage Your Tax Accounts at 
Pro.Portland.gov. Portland Revenue Online (PRO) allows                    Extensions. Metro does not allow an extension of time to 
                                                                          pay your tax. The submission of an extension payment by 
you to: 
                                                                          the original return due date provides an automatic six-month 
 •           Register your personal and business tax accounts             filing extension. If you do not have a tax balance due but 
 •           Update your account information                              would like to file  an extension, your  federal and/or  state 
 •           File a personal tax return                                   extension will serve as your Metro extension. When filing 
 •           Make payments                                                your return on the extended due date, check the “Extension 
 •           Upload supporting tax pages and documents                    Filed” box on the return. If no extension payment was made, 
 •           View correspondence mailed to you                            please attach a copy of your federal extension or verification 
                                                                          of your Oregon extension payment with your return.  
 •           Provide Third-Party Access to your tax preparer 
For  more  information  and  to  create  your  account,  visit            Amended Returns 
Pro.Portland.gov.                                                          
                                                                          The Revenue Division does not have a separate form for 
Publication  OR-17.  Metro  personal  income  tax  closely                amended tax returns. To amend your 2023 MET-40, use the 
follows  Oregon  personal  income  tax  treatment.  See                   form for the tax year being amended  and check the 
Publication  OR-17  for  more  information  about  personal               “Amended Return” box. If the address for the year you’re 
income tax laws. It is available at oregon.gov/dor/forms. To              amending has changed, use your current mailing address 
the  extent necessary, references in Publication OR-17 to                 and check the “Mailing Address Change” box. 
the state  of Oregon or  its  agencies should be treated as                
references to Metro and its agents.                                       Fill in all amounts on your amended return, even if they are 
                                                                          the same as originally filed. If you are amending to make a 
                                                                          change to additions, subtractions, or credits, include detail 

Page  1of  ,62023 MET-40 Instructions (Rev. 01/29/2024)

- 2 -

Enlarge image

of all items and amounts as well as any carryovers. Please         • An additional penalty of 100% of the unpaid tax of 
include  a  statement  explaining  what  changed  from  the          all tax years if the failure to file is for three or more 
original return.                                                     consecutive tax years. 
                                                                      
If you change taxable  income by  filing an original or           No late filing penalty is due if a timely extension is filed with 
amended federal or Oregon income tax return, you must file 
                                                                  the Revenue Division and a 2023 Form MET-40 is filed by 
an amended Form MET-40 within  60 days of when the 
                                                                  the extended due date, or a copy of the federal extension is 
original or amended federal or Oregon income tax return is 
filed. Include a copy of your original or amended federal or      included  with the return and the  ‘Extension Filed’ box is 
Oregon income tax return with your amended Form                   checked.   
MET-40 and explain the adjustments made.                           
                                                                  Late Payment Penalty 
On the prepayments line of your amended Form MET-40,               
enter the net tax as reflected on the original return or as       Your 2023 income tax must be paid by April 15, 2024, even 
previously adjusted. Do not include any penalty or interest       if you requested an extension to file your personal income 
portions of payments already made.                                tax return. If you do not pay your tax by the original due date, 
                                                                  the following late payment penalties will be applied: 
Penalty Calculation                                                
 
                                                                   • 5% of the amount of the unpaid tax if the failure to 
You may be subject to penalties for underpaying your tax 
                                                                     pay is for a period less than four months. 
liability,  filing a late  personal income tax return,  and/or 
                                                                   •
paying your income tax liability after the original due date of      An additional penalty of 100% of the unpaid tax of 
the return.                                                          all tax years if the failure to pay is for three or more 
                                                                     consecutive tax years. 
Although there is  a  late penalty for both failing to file  a 
                                                                  Interest Calculation 
personal tax return by the due date and failing to pay the tax     
by the original due date of the return, only one of these late    Calculate your interest from the original due date to the 15th 
penalties will be applied, even if there is a failure of both     day of the month following the date of  the  payment.  The 
requirements. In these cases, only the late filing penalty is     interest rate to use can be found in our Tax Administration 
applied. For the purposes of penalty calculations, unpaid tax     Policy – Personal Income Tax Interest Rates on Tax Due 
is your tax liability reduced by  any  payment of tax  made       and Refunds. 
before the original due date and any credit against tax that       
is claimed on the return. 
                                                                  Quarterly Underpayment Interest 
                                                                   
Underpayment Penalty                                              Quarterly underpayment  interest will be due if estimated 
                                                                  payments were required  and were  underpaid. Estimated 
You may be subject to a penalty for underpaying your tax          payments  can  be  made  through  quarterly  estimated 
liability  if,  by the original  due  date of the return, timely  payments, employer-provided withholding  from  a filer’s 
payments are not made which are either:                           wages, or a combination of both. Calculate your quarterly 
                                                                  underpayment interest at the rate in effect for the tax year 
  •          At least 90% of the total tax balance due, or  
                                                                  from the due date of each quarterly estimated payment to 
  •          100% of the prior year’s tax liability  paid  by the 
                                                                  the original due date of the tax return to which the estimated 
             original due date.  
                                                                  payments apply. The  amount of underpayment  is 
 
                                                                  determined by comparing the 90% of the current total tax 
If you did not satisfy either requirement, you will be charged 
                                                                  liability amount to quarterly estimated payments made prior 
an underpayment penalty of 5% of the unpaid tax, but not                                                        
                                                                  to the original due date of the tax return.  
less than $5. 
                                                                  There is no interest on underpayment of quarterly estimated 
Late Filing Penalty                                               payments if: 
 
If you do not file your 2023 Form MET-40 by the original due       • The total tax liability of the prior tax year was less 
date, file an extension with the Revenue Division by the             than $1,000. 
original due date, or include a copy of your federal extension     • An  amount equal  to  at least 90% of the total tax 
with your return when you file by the extended due date, the         liability for the current tax year was paid  in 
following late filing penalties will be applied:                     accordance with Section 7.05.190; or 
                                                                   • An amount equal to at least 100% of the prior year's 
  •          5% of the amount of the unpaid tax if the failure to    total tax liability was paid in  accordance  with 
             file is for a period less than four months.             Section 7.05.190. 

Page  2of  ,62023 MET-40 Instructions (Rev. 01/29/2024)

- 3 -

Enlarge image

Federal and Oregon Tax Returns Metro SHS Tax Account number beginning with SHP
followed by ten digits. If you do not know your number, leave
Please submit the following forms and schedules with your field blank.
return. Without this information, we may disallow or adjust
items claimed on your MET-40 return. The list below is not Filing Status. Check the box next to your filing status. You
all inclusive, and the Revenue Division has the authority to must use the filing status corresponding with the filing status
request additional tax pages or supporting documentation used on your Oregon tax return. Choose only one filing
to verify the accuracy of the tax reported on the tax return. status.

Taxpayer’s Last Name; First Name and Initial. If filing
Required Supporting Oregon Tax Pages jointly, enter the last name, first name, and middle initial (if
applicable) of the taxpayer listed as the primary filer on the
Be sure to include the following Oregon tax pages and any
Form OR-40. If taxpayer died during the tax year, check the
associated statements when submitting your return:
“deceased” box. A personal income tax return must be filed
• Form OR-40, pages 1-3 for a person who died if the person would have been
• Schedule OR-ASC (if filed) required to file. If you have been appointed personal
• Schedule OR-K-1(s) (if Metro previously taxed representative or you have filed a small estate affidavit, sign
income modification claimed) the return as “personal representative.” A surviving spouse
must sign if it’s a joint return. If there is no personal
Required Supporting Federal Tax Pages representative for the deceased person, only the surviving
spouse needs to sign a joint return.
Be sure to include the following federal tax pages and any
associated statements when submitting your return: Spouse’s Last Name; First Name and Initial. If filing
jointly as married filing separately, enter the last name, first
• Federal Form 1040, pages 1-2 name, and middle initial (if applicable) of the individual listed
• Form(s) W-2 (if Metro SHS tax withheld) as the spouse on Form OR-40. If taxpayer died during the
• Federal Schedule 1 tax year, check the “deceased” box. A personal income tax
• Schedule B (if filed) return must be filed for a person who died if the person
• Schedule C (if filed) would have been required to file. If you have been
• Schedule D (if filed, including Form 4797, Form appointed personal representative or you have filed a small
6252, and Form 8824) estate affidavit, sign the return as “personal representative.”
• Schedule E (if filed) A surviving spouse must sign if it’s a joint return. If there is
no personal representative for the deceased person, only
• Schedule F (if filed)
the surviving spouse needs to sign a joint return.
• Form 4868 (if federal extension filed)
• Form 1099-R (if PERS or federal retirement Social Security Number. Enter the Social Security Number
exemption claimed) (SSN) or Individual Tax Identification Number (ITIN) of the
• Schedule(s) K-1 (Form 1065/Form 1120-S/Form corresponding taxpayer and spouse. Refunds will not be
1041) (if Metro previously taxed income issued without a valid SSN or ITIN.
modification claimed)
• Form 8582 (if passive activity loss limitations apply Residence Address. Enter the residential address. If the
to Metro pass-through loss adjustment) primary taxpayer and spouse have different residential
addresses, list the address of the primary taxpayer. If the
residential address has changed, list the current address
Tax Return Filing Instructions
and mark the “check if changed” box. Unless a mailing
Rounding. Round off cents to whole dollars on your return address is provided, correspondence will be sent to the
and schedules. To round, drop amounts under 50 cents and residence address on file.
increase amounts from 50 to 99 cents to the next dollar. For
Mailing Address. Only enter an address if the mailing
example, $1.39 becomes $1 and $2.50 becomes $3. If two
or more amounts must be added to figure the amount to address is different from the residential address. If the
enter on a line, include cents when adding the amounts and mailing address has changed, list the current address and
round off only the total. mark the “check if changed” box.

Initial Return Box. Check this box if this is your initial
General Return Information return, if your filing status changed from the previous year,
or if the person you are filing jointly with changed from the
Metro Supportive Housing Services Personal Income
previous year.
Tax Account #. If you have already registered for an
account and know your account number, enter your full Final Return Box. Check this box if this is your final return.

Page 3of ,62023 MET-40 Instructions (Rev. 01/29/2024)

- 4 -

Enlarge image

Amended Return Box. Check this box if you are filing an Line 7. Credit for Taxes Paid to Another State. A Metro
amended return and have already submitted an original resident is allowed a credit for taxes paid to another state
return. See the Amended Returns instructions above for on mutually taxed income if the other state does not allow
more information about amending your MET-40. the credit. This credit can only be taken if the filer claims a
credit for income taxes paid to another state on the filer’s
Extension Filed Box. Check this box If you have filed a Oregon income tax return or if a composite return was filed
federal or state extension, or if you submitted an extension and there was no credit allowed on the other state’s tax
payment by the original due date of the return. Include return. A Metro resident figures the credit as the lesser of
required copies of federal or state extensions as applicable the Metro tax based on mutually taxed income or the tax
(see “Extensions” under “General Information” for additional actually paid to the other state. To calculate the Metro tax
information). based on mutually taxed income, see our Tax
Administration Policy – Credit for Taxes Paid to Another
Part I – Metro Taxable Income State.

Line 1. Oregon Taxable Income. Enter your Oregon Enter the lesser of the Metro tax based on mutually taxed
Taxable Income from Form OR-40, line 19. You must attach income or the tax actually paid to the other state on line 7.
copies of the required Oregon and federal tax forms listed Enter as a negative number.
in the instructions to your Metro return.
Line 8. Employer Withholding. If you had Metro SHS tax
Line 2. Exempt Income. Oregon Public Employees withheld from your wages by your employer, complete
Retirement (PERS) benefits and federal retirement benefits, Schedule WH on page 2 and enter the total tax withheld
including Federal Employees Retirement System (FERS) from line A-2 on line 8 as a negative number. If you have
benefits, Civil Service Retirement System (CSRS) benefits, tax to pay, consider submitting a FORM OPT to your
and military retirement benefits, that are taxed by Oregon employer to increase the amount your employer holds from
are exempt from this tax. Submit a copy of Form 1099-R for your wages. For withholding information, go to:
each source claimed. You are only allowed a deduction for oregonmetro.gov/public-projects/supportive-housing-
income that was not already exempted on your federal or services/taxes-and-funding.
Oregon return. Enter as a negative number.
Line 9. Prepayments. Enter the total amount of
Line 3. Previously Taxed Income Modification. If you prepayments as a negative number. Include all quarterly
received a Schedule K-1 (Form 1065) or a Schedule K-1 estimated payments, extension payments, and any credits
(Form 1120-S) from a pass-through entity (PTE) that was carried forward from prior years.
subject to the Metro Business Income Tax (METBIT),
complete Schedule PTI on page 2 and report your Line 10. Penalty. Enter all late penalties that apply, if
modification from line B-2 on line 3. Net pass-through gains known. Leave blank if unknown or not applicable. If
will be reported on this line as a negative value, and a net additional penalty is owed but was not calculated at the time
operating loss deduction will be reported on this line as a of return submission, you will receive a bill by mail.
positive value. See instructions for Schedule PTI for
additional guidance. Line 11. Interest. Enter interest due on tax not paid by the
due date, if known. Leave blank if unknown or not
Line 4. Metro Income Exemption. If you use the single applicable. If additional interest is owed but was not
filing status of single or married filing separately, enter calculated at the time of return submission, you will receive
$125,000 on line 4. If you use the joint filing status of a bill by mail.
married filing jointly, head of household, or qualifying
surviving spouse, enter $200,000 on line 4. Enter as a Line 12. Balance Due or (Overpayment). Add lines 6
negative number. through 11 and enter the sum on line 12. If the sum is
negative, you have an overpayment for the year. If the sum
Line 5. Income Subject to Tax. Enter the sum of line 1 is positive, you have a balance due.
through line 4 on line 5. If the balance is less than $0, enter
$0. Part III – Tax Due / Refund

Part II – Metro Supportive Housing Line 13. Overpayment. If line 12 is negative, this is the
Services Tax amount you have overpaid. If you have an overpayment,
you may make an irrevocable choice to have the balance
Line 6. Tax. Multiply line 5 by 1% and enter on line 6. This refunded to you or applied as an estimated payment to the
is your Metro personal income tax liability. next open tax year. If no election is made, any overpayment
will be refunded to you.

Page 4of ,62023 MET-40 Instructions (Rev. 01/29/2024)

- 5 -

Enlarge image

Line 13a. Refund. Enter the amount of the overpayment employer withheld the Metro SHS tax, information regarding
you would like refunded to you on this line. If you would like the withholding will be shown in boxes 18, 19, and 20 of
direct deposit of your refund, you must file your return online your W-2. If you file a joint Metro tax return, include
at Pro.Portland.gov. If your return is filed on paper, you will information for both the primary filer and spouse on
receive your refund in the mail by check. This election is Schedule WH.
irrevocable.
Only include box 18 and box 19 information if the locality in
Line 13b. Apply as an estimated tax payment. Enter the box 20 says “Metro” or “Metro SHS”. Do not include
amount of the overpayment you would like to apply as an information for the locality of “MULT”, “MultCo”, or
estimated payment to the next open tax year on this line. “Multnomah County”. Information for Multnomah County
This election is irrevocable. withholdings will be reported on the Multnomah County
Personal Income Tax return, which is a separate form. If no
Line 14. Amount Due. If line 12 is positive, you have a Metro SHS tax was withheld on your behalf (or your
balance due. Pay by April 15, 2024, to avoid late payment spouse’s behalf, if filing jointly) by your employer(s), you do
penalties and interest. Make your check payable to ‘Metro not need to complete this schedule.
SHS Tax’. For fastest payment processing, pay online at
Pro.Portland.gov. Report each W-2 on a separate line. Round off cents to
whole dollars. If two or more amounts must be added to
Part IV – Signature figure the amount to enter on a line, include cents when
adding the amounts and round off only the total.
Signature(s). Be sure to sign and date your return. If you
are filing a joint return, both taxpayers must sign. By signing Column (a). Employee SSN. Enter the social security
the return, you acknowledge, under penalty of false number of the filer shown in box a of the W-2.

swearing, that the information on the return is true, correct, Column (b). Employer Name. Enter the name of the
and complete. employer shown in box c of the W-2.

Preparer Signature. Anyone who prepares, advises, or Column (c). Employer FEIN. Enter the employer
assists in preparing personal income tax returns in identification number (EIN) shown in box b of the W-2.
exchange for compensation of any kind must be licensed to
prepare Oregon returns and must sign the return. Column (d). Local Wages, Tips, Etc. Enter the amount
shown in box 18 of the W-2. Make sure that the locality
name shown in box 20 indicates that the value in box 18 is
Mailing Instructions
for the Metro SHS tax.
If you are including a payment with your return, send your
Column (e). Local Income Tax Withheld. Enter the
completed return, payment, and all required supporting tax
amount shown in box 19 of the W-2. Make sure that the
pages to:
locality name shown in box 20 indicates that the value in
Revenue Division – Metro SHS Tax box 19 is for the Metro SHS tax.
PO Box 9250
Check box if you have additional employer
Portland, OR 97207-9250
withholdings, and submit statement. If you have more

than four W-2s that show Metro Tax withholdings, check the
Make the check payable to ‘Metro SHS Tax.’ For fastest
box, and attach a statement with the employee SSN,
payment processing, pay online by logging into your PRO
employer name, employer FEIN, local wages, tips, etc. and
account at Pro.Portland.gov.
local income tax withheld for each additional W-2. Include

the total amount from the statement on line A-2.
If a payment is not included with your return, send your
completed return and all required supporting tax pages to: Line A-2. Total sum from column (e). Enter the sum of all
Metro Tax withheld from line column (e) and the
Processing – Metro SHS Tax supplemental statement (if applicable). Enter the amount
111 SW Columbia St, Suite 600 from line A-2 on Line 10, page 1 of the return.
Portland, OR 97201-5840
Schedule PTI – Previously Taxed Income
Schedule WH – W-2 Withholding Summary Modification
for Metro SHS Tax
Use this schedule to determine the amount of previously
Use this schedule to calculate the total amount of Metro taxed income modification to report for pass-through
SHS tax that was withheld by your employer. If your income/loss that was already subject to the Metro Business

Page 5of ,62023 MET-40 Instructions (Rev. 01/29/2024)

- 6 -

Enlarge image

Income Tax (METBIT). This schedule must be completed to Column (b). Name of Pass-Through Entity. Enter the
determine the value for line 3 in Part I of the return. If your name of the S corporation or partnership from box B of the
pass-through income was not subject to tax under the Schedule K-1.
METBIT for any reason, you are not eligible to claim a
previously taxed income modification. Column (c). Income Subject to Tax from Pass-Through
Entity. For the deduction for previously taxed income from
a PTE subject to the METBIT, enter the lesser of:
Income from Pass-Through Entity Subject

to METBIT • Metro “income subject to tax” from the S

You are allowed a deduction from personal taxable income corporation or partnership return that was
for previously taxed income derived from a pass-through reported to you by the PTE with Schedule K-1, or
entity (PTE) subject to the METBIT. To take this deduction, • The amount of pass-through income from the
you must have documentation from the PTE showing your entity that paid the METBIT that is included in
share of income that was subject to tax on the PTE’s your federal Form 1040.
METBIT return. The deduction is limited to the amount of
pass-through income, from the entity that paid the METBIT, For net operating loss deductions (NOLD) that must be
that is included in your federal Form 1040. added back, enter the amount of net operating loss
deduction allowed on your federal return from a pass-
For more information related to this modification, please through entity subject to the METBIT. Enter a loss as a
read our Tax Administration Policy – Deduction for negative number.
Previously Taxed Income Received from a Pass-Through
Entity. Column (d). Ownership Percentage. If the amount
reported in column (c) was the entity’s “income subject to
tax”, enter your ownership percentage in the PTE.
Losses from Pass-Through Entity Subject
to METBIT If the amount reported in column (c) was the amount of

pass-through income from the entity that paid the METBIT
Net operating losses generated in the current tax year at the
that is included in your federal Form 1040, enter that entity’s
PTE level are allowed to be claimed at the individual level
Metro apportionment percentage as reported on their Metro
to the extent that the loss is allowed on the federal and
Business Tax Return.
Oregon return. A pass-through loss cannot exceed the

amount of pass-through loss included in Oregon taxable
For a NOLD that must be added back, enter 100% as
income or to reduce your Metro taxable income to an
1.00000.
amount below zero.

If you claimed a net operating loss deduction (NOLD) on Column (e). Modifications Claimed for Previously Taxed
your federal Form 1040 that was from a carryforward of a Income and Losses. Multiply column (c) by column (d) and
enter the result. Enter deductions for income from a PTE’s
net operating loss from a year that the PTE was subject to
income subject to tax as a positive number. Enter losses as
the METBIT, the deduction is disallowed for purposes of the
a negative number.
Metro SHS Personal Income Tax and must be added back

to your Oregon taxable income. Include a statement
explaining the adjustment. Check box for an entity that elected the actual method
for previously taxed income. If one of the entities included
on your Schedule PTI has elected the actual method for
For more information related to pass-through losses, please
allocating the maximum previously taxed income allowable,
read our Tax Administration Policy – Net Operating Losses
check the box.
and Net Operating Loss Deduction from Pass-Through
Entities.
Check box for additional previously taxed income
modifications and statement. If you have previously taxed
Schedule PTI Instructions income/loss from more than five PTEs to deduct or add-

back, check the box, and attach a statement which includes
Report each PTE on a separate line. If income or loss flows the same information above. Include the total amount of
through one or more pass-through entities between the additional modifications from the statement on line B-2.
entity that paid tax and your federal return, adjustments may

be required. Submit a copy of the corresponding Schedule Enter the sum of all
Line B-2. Total sum from column (e).
K-1 for each modification claimed. eligible previously taxed income/loss from column (e) and
the supplemental statement (if applicable). Enter the
Column (a). Tax ID of Pass-Through Entity. Enter the S amount from line B-2 on line 3, Part I of the return. If you
corporation or partnership employer identification number have a net loss, enter this as a positive number on line 3. If
from box A of the Schedule K-1. you have a net gain, enter this as a negative number
on line 3.

Page 6of ,62023 MET-40 Instructions (Rev. 01/29/2024)

PDF file checksum: 566732163

(Plugin #1/10.13/13.0)