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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)

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                                          Contents

Electronic filing ..................................................................3         Filing status ...................................................................11 
Federal tax law ...................................................................3          Exemptions ....................................................................12
New information ................................................................4           Federal column instructions, lines 7F–29F ..................14
Important reminders .........................................................4              Oregon column instructions, lines 7S–29S ..................14
General information ..........................................................5               Adjustments ..................................................................16
  Do I need to file an Oregon return? .............................5                          Additions .......................................................................17
  What does income from Oregon sources include? ....5                                         Subtractions ...................................................................17 
  Residency .........................................................................6        Oregon percentage .......................................................17 
  What form do I use? .......................................................6                Deductions and modifications ...................................18
  Military personnel ..........................................................7              Oregon tax .....................................................................21
  What if I need more time to file? ..................................7                     Tax rate charts ..................................................................21
  P enalties ...........................................................................7     Credits—nonrefundable ..............................................22 
  2024 estimated tax ..........................................................8              Tax payments and refundable credits .......................23
  What if I need to change my Oregon return                                                   Penalties and interest ...................................................29
    after filing? ....................................................................8       Amount due and payment options ............................30
General instructions for Forms OR-40-N                                                        Refund ............................................................................30
and OR-40-P ......................................................................10          Direct deposit ................................................................31
  Check the boxes ............................................................10              Before you file ...............................................................32
  Name and address ........................................................11                 Avoid processing delays ..............................................33
                                                                                              Tax return mailing addresses .....................................33

     Do you have questions or need help?

Internet                                                                                     Phone
        www.oregon.gov/dor
                                                                                            503-378-4988 or 800-356-4222
•  Download forms, instructions, and publications.
•  Access additional  information  not  included  in  these                                   Monday–Friday, 7:30 a.m.– 5 p.m.
instructions.                                                                                Closed Thursdays from 9:00–11:00 a.m and closed on 
                                                                                             holidays. Wait times may vary.
Revenue Online
                                                                                            Contact us for ADA accommodations or assistance in other 
        www.oregon.gov/dor (click on Revenue Online)
                                                                                            languages.
•  Securely communicate with us.
•  Check your refund status.
•  Make or schedule payments.                                                                In person
•  View your account history.
                                                                                            Offices are located in Salem, Portland, Eugene, Bend, 
•  Find out how much you owe.
                                                                                            Gresham,  and Medford.  Find  hours and  directions to  our 
•  File an appeal.
                                                                                            offices on our website. 
• View letters and your Form 1099-G, if applicable.
                                                                                            Our main office is located at:
Email or write                                                                              955 Center St NE
                                                                                            Salem, OR 97301-2555
  questions.dor@dor.oregon.gov
  preguntas.dor@dor.oregon.gov
                                                                                             Taxpayer Advocacy
Oregon Department of Revenue
955 Center St NE                                                                            If you think you are not being treated fairly, or if you have a 
Salem OR 97301-2555                                                                         problem or complaint, please contact the Office of the Tax-
•  Include your name and daytime phone number.                                              payer Advocate for assistance. 
•  Include the last four digits of your SSN or ITIN.
                                                                                            503-945-8700
To request printed forms or publications:                                                   TTY: We accept all relay calls.
Forms
Oregon Department of Revenue                                                                taxpayer.advocate@dor.oregon.gov
PO Box 14999
Salem OR 97309-0990
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

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Electronic filing

E-filing is the fastest way to file your return and receive 1. Ask your tax preparer.
your refund. The speed and accuracy of computers If your tax preparer is an authorized IRS e-file pro-
allow electronic returns to be received and processed vider, your preparer can electronically file your fed-
faster than paper returns, greatly reducing errors and eral and Oregon returns. Many Tax-Aide and Tax
delays. E-filing uses secure technology to ensure the Counseling for the Elderly (TCE) sites set up by the
safety of your personal information when it’s sent to IRS are authorized IRS e-file providers.
the IRS and the Department of Revenue.
2. Use online tax preparation software.
Oregon participates in the IRS Federal/State E-file pro- You can file your federal and state returns from
gram. This program allows you to electronically file your home, work, or library computer using Oregon-
both your federal and Oregon returns at the same time. approved online tax preparation products. Go to our
If you’ve already filed your federal return, you can still website at www.oregon.gov/dor/e-filing for a list of
electronically file your Oregon return. tax preparation products to use in preparing your
federal and Oregon returns.
If you haven’t tried e-file yet, why not this year? Join
more than 1.8 million other Oregon taxpayers who You may be eligible for free e-file. Several tax
electronically file their Oregon returns. preparation software providers offer free online
electronic tax filing. For free online tax preparation
You can take advantage of e-file in one of two ways:
programs, go to www.oregon.gov/dor/e-filing.

Federal tax law

No extension to pay. Oregon doesn’t allow an exten- Section 139A , the tax exemption for federal subsidies
sion of time to pay your tax, even if the IRS allows an for employer prescription drug plans. If you have this
extension. Your 2023 Oregon tax is due April 15, 2024. type of business income, you’ll have an addition on
your Oregon return.
Federal law connection. Oregon has a rolling tie to
changes made to the definition of federal taxable Oregon is disconnected from IRC Section 529 tax
income, with the exceptions noted below. For all other exemption for earnings on college savings plan funds
purposes, Oregon is tied to federal income tax laws as used for K-12 tuition. Oregon College and MFS 529 Sav-
amended and in effect on December 31, 2022. ings Plans may be used for higher education expenses
only. If you based a previous subtraction or credit on
Oregon exceptions to federal law. Oregon is discon-
contributions that are withdrawn and used for K-12
nected from the business income deduction allowed
tuition, you’ll have an addition or tax recapture on your
by Section 199A of the Internal Revenue Code (IRC).
Oregon return.
Due to the way Oregon’s returns are designed, no addi-
tion is required. Oregon is also disconnected from IRC

150-101-048-1 (Rev. 11-01-23) 3 2023 Form OR-40-N and Form OR-40-P Instructions

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New information

Oregon Kids Credit. A new refundable tax credit is of the subtraction. See “Subtractions” in Publication
available to certain taxpayers with a qualifying child OR-17 for more information.
age 5 or younger. See instructions for OR-40-N, line 62,
Pass-through entity elective tax. There is now a sub-
or OR-40-P, line 61.
traction available for refunds of the elective tax that
Paid Leave Oregon benefits. Oregon’s new program were passed through to you and included as income on
providing medical, family, and safe leave began pay- your federal return. See “Subtractions” in Publication
ing benefits September 3, 2023. Changes to your return OR-17 for more information.
may be necessary if you received benefits under the
Forest conservation credit. A new tax credit is avail-
program. See “Subtractions” in Publication OR-17 for
able to small forestland owners that choose to create a
more information.
forest conservation area. The forest conservation area
National Guard subtraction. Pay for active service in requires restrictions on harvest to be followed for 50
the National Guard can now generally be subtracted years. See “Carryforward credits” in Publication OR-17
from taxable income if the service is authorized by the for additional information.
Governor. This change also applies retroactively to tax
years 2021 and 2022. If you received National Guard Agricultural Employer Overtime Tax Credit. A refund-
pay during those years, you will need to amend your able credit is available for employers who pay overtime
return to take advantage of the subtraction. See “Mili- to their agricultural workers. Employers must apply
tary personnel filing information” in Publication OR-17 for the credit in January for overtime wages paid in
for more information the prior year, and they must receive notification of the
credit amount from the Department of Revenue before
Casualty loss from state-declared emergency. If you
the credit can be claimed. See “Refundable credits” in
experienced a loss in Oregon due to a state-declared
Publication OR-17 for more information.
emergency and weren’t able to deduct it on your fed eral
return, you may be able to take a subtraction on your Federal tax liability subtraction. The 2023 federal tax
Oregon return. This subtraction applies to tax years subtraction limit is $7,800 ($3,900 for married filing
2020, 2021, and 2022, as well as future years. If you meet separately). It may be limited further based on your
the requirements for the subtraction for those years, adjusted gross income (AGI). See instructions for
you’ll need to amend your return to take advantage line 40.

Important reminders

Revenue Online. Revenue Online provides convenient, you must include Schedule OR-ASC-NP. Without this
secure access to tools for managing your Oregon tax information, we may disallow or adjust your claim.
account. To set up your Revenue Online account, go to Schedule OR-ASC-NP and Publication OR-CODES are
www.oregon.gov/dor and click on “Revenue Online.” available at www.oregon.gov/dor/forms or you can
contact us to order them.
Federal return. You must include a copy of your fed-
eral Form 1040 or 1040-SR with Schedules 1 through Publication OR-17. See Publication OR-17 for more
3 (if applicable), 1040-X, or 1040-NR with your Oregon information about filing and personal income tax laws.
return. Without this information, we may disallow or It is available at www.oregon.gov/dor/forms.
adjust items claimed on your Oregon return.
Data security breaches. Tax professionals suffering
Schedule OR-ASC-NP. If you’re claiming an adjustment, a data breach associated with tax return preparation
addition, subtraction, modification, tax recapture, or must report the breach promptly to us. See our website
credit using a code listed in Publication OR-CODES, for additional information.

150-101-048-1 (Rev. 11-01-23) 4 2023 Form OR-40-N and Form OR-40-P Instructions

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                              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         Return processing times vary due to many factors, 
Oregon-source income and income received while an            including the complexity of your return.
Oregon resident is more than your standard deduction.        Electronically filed returns are generally received and 
See Table 1.                                                 processed faster.
If your Oregon income is less than your standard deduc-      Paper returns must have all required Oregon sched-
tion, you’re not required to file a return for Oregon.       ules, proof of tax withheld, and a copy of your federal 
                                                             return included to ensure smooth processing. If you 
However, you must file an Oregon return if you had           don’t have a federal filing requirement, create a substi-
$1 or more of Oregon income tax withheld from your           tute return and check the “calculated using ‘as-if’ fed-
wages and you want to claim a refund, or if you qualify      eral return” box on your return.
to claim a refundable credit.                                Returns mailed closer to April 15, when we receive the 
Full-year residents. Oregon taxes your income from all       most returns, can take longer to process.
sources.                                                     Also, returns that require additional review can take 
                                                             more time to process. Typical reasons for additional 
Part-year residents. Oregon taxes your income from all 
                                                             review include: incomplete  documentation,  iden-
sources earned or received while you were an Oregon 
                                                             tity verification needed, claiming the working fam-
resident. Oregon also taxes your income from Oregon          ily household and dependent care credit, proof of tax 
sources while you were a nonresident.                        withheld needed, etc.
Nonresidents. Oregon  taxes only your income from            To check the status of your refund, click on “Where’s 
Oregon sources.                                              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,        What does income from Oregon 
Form OR-41. Don’t file an Oregon Form OR-40-N.               sources include?

Table 1. Filing thresholds                                   Oregon income includes income shown on your federal 
                                                             return for services performed in Oregon.
You must file an Oregon income tax return if:
                                      And your               If you have wages from an Oregon employer and 
                                      Oregon gross           you performed services for your employer in Oregon 
                                      income is              and another state while you were a nonresident, and 
Your filing status is—                more than—             your Oregon wages aren’t stated separately on your 
                                                             Form W-2, compute your Oregon-source income using 
Can be claimed on another’s return        $1,250*
                                                             the formula for line 7S.
Single                                    $2,605
Married filing jointly                    $5,210             Other Oregon sources of income (and losses) include:
Married filing separately                                    • Businesses, partnerships, limited liability companies 
• If spouse claims standard deduction     $2,605             taxed as partnerships, and S corporations located or 
• If spouse itemizes deductions              0               doing business in Oregon or providing services to 
Head of household                         $4,195             Oregonians.
Qualifying surviving spouse               $5,210             • Unemployment insurance benefits received because 
                                                             of an Oregon job.
*The larger of $1,250, or your earned income plus $400, 
                                                             • Severance pay received because of an Oregon job.
up to the standard deduction amount for your filing status.
                                                             • Farms located in Oregon.

150-101-048-1 (Rev. 11-01-23)                              5 2023 Form OR-40-N and Form OR-40-P Instructions

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• Estates and trusts in Oregon or that have Oregon
property or businesses. Residency

• Oregon State Lottery. Am I a resident, a nonresident, or a part-year resident?
• Sale of Oregon property.
• Rents and royalties for use of Oregon property. • You’re a full-year Oregon resident, even if you live
outside Oregon, if all of the following are true:
• Community property. If you’re a resident of Oregon
and your spouse is a resident of a state with com- — You think of Oregon as your permanent home.
munity property laws, you may be taxed on part of — Oregon is the center of your financial, social, and
family life.
your spouse’s income. Community property laws in
— Oregon is the place you intend to return.
the state where your spouse lives determine if you’re
taxed on any of your spouse’s income. • You’re still a full-year resident if:
• Global intangible low-taxed income (GILTI) if you — You temporarily moved out of Oregon or
were an Oregon resident on the date you received it — You moved back to Oregon after a temporary
(actual or deemed), or if it’s from property employed absence.
in a business, trade, profession, or occupation carried You may also be considered a full-year resident if you
on in Oregon while a nonresident. spent more than 200 days in Oregon during 2023 or
Income not considered from Oregon sources includes: you’re a non-U.S. citizen without permanent resident
status.
• Interest and dividends. However, you must include
them in Oregon income if they were: • You’re a nonresident if your permanent home was
outside Oregon all year.
—From an Oregon business you own.
—Received during the part of the year you were a • You’re a part-year resident if you moved into or out
resident. of Oregon during 2023. You’re not considered a part-
—Passed through from an S corporation or partner- year resident if:
ship doing business in Oregon. — You temporarily moved out of Oregon, or
• Oregon retirement income received while you were — You moved back to Oregon after a temporary
a nonresident unless you were domiciled in Oregon. absence.
See “Retirement income” in Publication OR-17. Special-case Oregon residents. If you’re an Oregon
• Interstate transportation wages from an interstate resident and you meet all of the following conditions,
railroad company, interstate motor carrier, air carrier, you’re considered a nonresident for tax purposes:
or interstate motor private carrier. You must be a non-
• You maintained a permanent home outside Oregon
resident and have regularly assigned duties in more
for the entire year.
than one state. See “Interstate transportation wages”
• You didn’t keep a home in Oregon during any part of
in Publication OR-17. the year.
• Waterway, air carrier, or hydroelectric dam compen- • You spent less than 31 days in Oregon during the
sation, if you’re a nonresident: year.
— Working as crew or pilot on a vessel in navigable Important. A recreational vehicle (RV) isn’t considered
waters between Oregon and another state. a permanent home outside of Oregon.
— Working as crew or pilot on an aircraft in Oregon
Oregon residents living abroad. You’re considered a
and at least one other state.
nonresident if you’re a qualified individual for pur-
— Working on a dam that spans a river between Ore-
poses of the federal foreign earned income or housing
gon and another state.
exclusion for U.S. residents living abroad.
Note: See the “Income” section in Publication OR-17
for more details regarding waterway, air carrier, and
What form do I use?
dam workers’ compensation.
• Military pay of a nonresident. Use Form OR-40-P if any ONE of the following is true:
• Winnings of a nonresident from tribal gaming cen- • You’re a part-year resident.
ters in Oregon. • You’re filing jointly and one of you is a full-year Ore-
• Wages earned by a nonresident military spouse who gon resident and the other is a part-year resident.
is in Oregon only to be with the service member who • You’re filing jointly and both of you are part-year
is stationed here. Oregon residents.

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• You qualified as an Oregon resident living abroad for 
part of the year.                                             Filing for a deceased person

Use Form OR-40-N if any ONE of the following is true:         A personal income tax return must be filed for a per-
                                                              son who died if the person would have been required 
• You’re a nonresident.
                                                              to file. See “Do I need to file?”. Check the “Deceased” 
• You’re a special-case Oregon resident.
                                                              box next to the person’s name on the return. If you have 
• You’re filing jointly and one, or both, of you is a 
                                                              been  appointed personal representative or you  have 
nonresident.
                                                              filed a small estate affidavit, sign the return as ”per-
• You  meet  the  military personnel  nonresident             sonal representative.” A surviving spouse must sign if 
requirements.                                                 it’s a joint return. If there’s no personal representative, 
• You qualified as an Oregon resident living abroad for       only the surviving spouse needs to sign a joint return.
the entire year.
                                                              Note: Oregon has an estate transfer tax on estates val-
Use Form OR-40 if any ONE of the following is true:           ued at $1 million or more. The tax is paid by the estate 
• You’re a full-year resident not filing a joint return; or   using  Form  OR-706,  not  by  the  individuals  receiving 
• You and your spouse are both full-year residents fil-       the inheritance. For more information, see the instruc-
ing jointly.                                                  tions for Form OR-706.
Form OR-40 is available at  www.oregon.gov/dor/forms 
or you can contact us to order it.                            When should I file my return?

                                                              The filing deadline for calendar year 2023 is 
Military personnel                                            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 late-
Nonresidents stationed in Oregon. Oregon doesn’t tax          filing penalty.
your military pay while you’re stationed in Oregon. File 
                                                              Returns for fiscal filers are due by the 15th day of the 
Form OR-40-N if you had other income from Oregon 
                                                              fourth month after the close of their tax year. 
sources, or to claim a refund of Oregon tax withheld 
from your military pay.
                                                              What if I need more time to file?
Military spouses. Federal law does not allow Oregon 
to tax your wages if you’re a nonresident and you’re in       If you requested a federal extension to file, Oregon will 
Oregon only to be with your spouse who is stationed           allow the same extension. Don’t include a copy of your 
in Oregon. If you are domiciled in Oregon and you             federal extension with your Oregon return; keep it with 
file a joint return with your spouse who is a resident        your records. If you need an extension of time to file 
of another state, federal law allows you to choose to be      only your Oregon return, see Publication OR-40-EXT. 
treated for tax purposes as a resident of your spouse’s       The due date for filing your return on extension is 
state. File Form OR-40-N if you had other income from         October 15, 2024.
Oregon sources or are claiming a refund of withheld           An extension doesn’t mean more time to pay.
Oregon tax.                                                   To avoid interest charges, you must pay all of the 
Residents (or Oregon-domiciled service members) sta-          tax you expect to owe by April 15, 2024. If you can’t 
tioned outside of Oregon. If you meet the requirements        pay all of the tax you expect to owe, pay what you 
for special-case Oregon residents or Oregon residents         can. You’ll owe interest on any unpaid tax starting  
living abroad, file Form OR-40-N. File Form OR-40 if          April 16, 2024, until the date of your payment. You may 
you don’t meet those requirements.                            also be charged a penalty for failing to pay your tax on 
                                                              time. See “Penalties” and the instructions for Form OR-
Residents (or Oregon-domiciled service members) sta-          40-N, line 68 or Form OR-40-P, line 67.
tioned in Oregon. Your pay is subject to tax, although 
                                                              Don’t forget to check the “Extension filed” box on 
the pay could qualify for certain subtractions. For more 
                                                              your return when you file. File your return by Octo-
information on subtractions available to military per-
                                                              ber 15, 2024.
sonnel, see Publication OR-17.

Military personnel on active service in Oregon are            Penalties
treated as nonresidents for tax purposes if their address 
in the payroll records of the Defense Finance and             If you don’t pay all of your tax by April 15, 2024, you 
Accounting System (DFAS) is outside Oregon, regard-           may be charged a 5 percent penalty on the unpaid 
less of where they are domiciled (ORS 316.027).               amount, even if you requested an extension to file your 

150-101-048-1 (Rev. 11-01-23)                               7      2023 Form OR-40-N and Form OR-40-P Instructions

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return. Oregon doesn’t allow an extension of time to 
pay tax, even if the IRS does.                               Interest on underpayment of 
You’ll be charged a 20 percent penalty for failure to        estimated tax
file your return if you file it more than three months 
after the due date, including extensions. If both pen-       You may owe interest for underpaying your estimated 
alties apply, the total penalty will be 25 percent of the    tax if:
unpaid tax.                                                  • The tax on your return after credits and withholding 
Note: If you fail to file returns for three consecutive      is $1,000 or more; or
years by the due date for the third year’s return, includ-   • You underpaid one or more of your required esti-
ing extensions, you’ll be charged a penalty of 100 per-      mated tax installments.
cent of each year’s unpaid tax.                              See the instructions for Form OR-40-N, line 69, or Form 
For more information about these and other penalties,        OR-40-P, line 68, and Form OR-10 Instructions for more 
see the instructions for Form OR-40-N, line 68 or Form       information.
OR-40-P, line 67, and “Interest and penalties” in Publi-
cation OR-17.                                                What if I’m self-employed?

                                                             If you’re self-employed and do business in Mult-
2024 estimated tax                                           nomah, Clackamas, or Washington counties, you 
Estimated tax is the amount of tax (after credits and        may need to file Form OR-TM. If you’re self-employed 
Oregon tax withheld) you expect will be shown on             and do business in    Lane County, you may need 
your return when you file.                                   to file Form OR-LTD. Go to our website to down-
                                                             load the forms, contact us to order either form, or 
Do I need to make estimated payments?                        file them electronically through Revenue Online at  
In most cases, if you expect your return to show that           www.oregon.gov/dor.
you will owe $1,000 or more in tax after credits and 
withholding you must make estimated payments. You            What if I need to change my Oregon 
may need to make estimated payments if:
                                                             return after filing?
• You’re self-employed and don’t have Oregon tax 
withheld from your income.                                   It depends on what you need to change. Follow these 
• You  have  Oregon  Lottery  single-ticket  winnings  of    instructions for amending (changing) your return if:
less than $1,500.
                                                             • You discover that your income, deductions, or other 
• Oregon tax isn’t withheld from other types of income 
                                                             item(s) were wrong. 
(such as pensions, interest, or dividends) and you 
                                                             • You used a form that didn’t match your residency 
expect to owe tax of $1,000 or more.
                                                             status.
• You’re a wage earner and expect to owe tax of $1,000 
                                                             • Your filing status wasn’t correct.
or  more  on  your 2024  return. You  may  want to 
                                                             • The IRS or another state adjusted or audited your 
increase the amount your employer withholds from 
                                                             return and it affects your Oregon tax.
your Oregon wages. For withholding information, go 
                                                             • You have a net operating loss (NOL) carryback.
to   www.oregon.gov/dor/personal.
                                                             • Changes in federal or state income tax laws affect a 
Oregon  and federal estimated  tax laws are not  the         return you’ve already filed.
same. See Publication OR-ESTIMATE for more infor-
                                                             Don’t amend your Oregon return if:
mation, including: 
                                                             • We made changes to your return and you object to 
• Detailed instructions for calculating installment 
                                                             those changes. You must follow the appeal process in 
payments.
                                                             the notice we sent you.
• Tax rate charts for 2024.
                                                             • You’re filing a protective claim for a refund. Use  
• Installment periods and due dates.
                                                             Form OR-PCR, which is available on our website or 
• Helpful worksheets and examples.
                                                             you can contact us to order it.
• Payment instructions.
                                                             There’s a time limit for filing an amended return to 
You can find Publication OR-ESTIMATE and payment 
                                                             claim a refund. See the instructions for Form OR-40-N, 
voucher Form OR-40-V on our website or you can con-
                                                             lines 72 to 75 or Form OR-40-P, lines 71 to 74. For more 
tact us to order them. 
                                                             information, see “Amended returns” in Publication 
                                                             OR-17.

150-101-048-1 (Rev. 11-01-23)                              8        2023 Form OR-40-N and Form OR-40-P Instructions

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                                                             Amended worksheet
How do I amend my 2023 return?
                                                             Use this worksheet to figure your amended refund or 
General instructions                                         tax to pay. Keep the completed worksheet with your 
                                                             records. Note: If we adjusted any of the amounts on 
• Complete the return as it should’ve been filed, includ-    your original 2023 return, use the adjusted amounts.
ing adjustments we made.
• Check the “Amended return” box on the first page.          1. Amended tax after standard and     1.
• In the “Amended statement” space, provide the                 carryforward credits (amended 
return line number and reason for each change.                  Form OR-40-N, line 56; Form OR-
• Use the Amended worksheet to figure your amended              40-P, line 55).
tax due or refund.                                           2. Amended total payments and            2.
• If you’re amending your federal return or a return            refundable credits (amended 
you filed with another state, include a copy of those           Form OR-40-N, line 65; Form OR-
amended returns with your amended Oregon return.                40-P, line 64).
If you’re only amending your Oregon return, include 
a copy of your original federal return. Don’t include        3. Line 1 minus line 2. If less than 0,    3.
a copy of your original Oregon return.                          use a minus sign.
Residency. Use the form that matches your residency          4. Refund you already had for 2023       4.
status for the year you’re amending, even if your origi-        (original Form OR-40-N, line 
nal return was filed on a different form.                       72; Form OR-40-P, line 71; Form 
                                                                OR-40, line 47). If you didn’t have 
Mailing address. Use your current address. 
                                                                a refund, enter 0.
Adjustment made by the IRS or another state. Include 
                                                             5. Amended tax to pay or refund.         5.
a copy of the corrected federal or other state return or 
                                                                Line 3 plus line 4. If less than 0, 
audit report. 
                                                                you have a refund; go to line 6. 
Electronically file your amended return. You can now            If 0 or more, you owe tax; skip to 
electronically file your Oregon amended return, if your         line 8.
chosen  software  supports  filing  an  amended  federal 
return. You will need to contact your software provider      6. Refund applications that              6.
to find out if they support filing an amended federal           weren’t on your original return 
return.                                                         (amended Form OR-40-N, lines 
                                                                73 through 75; Form OR-40-P, 
NOL carryback. Enter the loss year in the NOL tax year          lines 72 through 74), up to the 
box on the first page of the return. If you’re carrying         refund amount on line 5. Don’t 
back an NOL from more than one year, file a separate            use a minus sign.
amended return for each NOL year. In the “Amended               Example: If line 5 is –$500, you 
statement” space, tell us the section number of the IRC         may apply up to $500 on your 
or  Oregon  Revised  Statute  (ORS)  that  allows  you  to      amended Form OR-40-N, lines 
carry the NOL(s) back to the 2023 tax year. See “Net            73 through 75, or Form OR-40-P, 
operating losses for Oregon” in Publication OR-17 for           lines 72 through 74.
more information. 
                                                             7. Net amended refund. Line 5 plus    7.
What if I need to change a return I filed for an earlier        line 6. This can’t be more than 0. 
year?
                                                             8. Penalty and interest on amended    8.
Refer to the instructions for the tax year you need to          tax to pay (amended Form OR-
amend. Visit our website or contact us if you need the          40-N, line 68; Form OR-40-P,  
form and instructions for a different year.                     line 67).
How long will it take to process my amended return?
                                                             9. Total amended amount you owe.        9.
It may take six months or longer to process your                Line 5 plus line 8. 
amended return.                                              10.  Payments made on or after April   10.
                                                                15, 2024.

                                                             11. Total amount to pay with your       11.
                                                                amended return. Line 9 minus 
                                                                line 10.

150-101-048-1 (Rev. 11-01-23)                              9    2023 Form OR-40-N and Form OR-40-P Instructions

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                              General instructions for  

                   Forms OR-40-N & OR-40-P

Step 1: Complete your federal return
                                                               Check the boxes
Your Oregon tax is determined using the ratio of your 
Oregon-source income to your entire federal income. 
                                                               Amended return
Complete your federal return first. Do this even if 
you aren’t required to file a federal return. You must         If you’re amending your 2023 return, check this box. 
use the information from your federal return to com-           See “What if I need to change my return after filing?” 
plete  your Oregon return.  You must  include  a copy          in the “General information” section for instructions. 
(front and back) of your federal Form 1040 or 1040-SR 
with Schedules 1 through 3 (if applicable), or 1040-NR         Calculated using “as if” federal return
with  your Oregon  return. If  you’re  amending  your 
Oregon return and your federal return, include a copy          Check this box if:
of Form 1040-X and an amended Form 1040 or 1040-SR 
                                                               • You’re filing as an Oregon RDP.
with Schedules 1 through 3 (if applicable).
                                                               • Your filing status is “married filing separately for 
If you don’t provide a copy of your federal return, we         Oregon only” because you and your spouse don’t 
may adjust or deny your Oregon subtractions, deduc-            have the same residency status. 
tions, and credits. Include federal Schedules 1 through        • You didn’t file a federal return.
3 (if applicable); don’t include any other federal sched-
ules. We may ask you for copies of other schedules or          Short-year tax election
additional information later.
                                                               If you’re filing a short-year return due to a bankruptcy, 
Oregon registered domestic partners (RDPs): To cor-
                                                               check this box and write the ending date in the “Fiscal 
rectly determine  your  Oregon  tax  liability,  you  must 
complete a federal income tax return as if you were fil-       year ending” box.
ing as married filing jointly or married filing separately. 
Check the “Calculated using ‘as if’ federal return” box        Extension filed
on your Oregon return.                                         Check this box if you requested an extension to file 
For more information on how to file as an RDP, go to           your return. See “What if I need more time to file?” 
      www.oregon.gov/dor and search for “RDP.”                 in the “General information” section and Publication 
                                                               OR-40-EXT for more information.
Step 2: Select the appropriate Oregon return
                                                               Form OR-24
To decide which form to use, see “What form do I use?” 
in the “General information” section.                          Check this box if you’re deferring gain on like-kind 
                                                               property that was exchanged or converted. You’ll 
Step 3: Fill out the Oregon return                             report the gain to Oregon when it’s reported on your 
Use blue or black ink only for easier reading and faster       federal return  (federal  Form  8824).  You  must  include 
processing. The equipment used to scan documents               Form OR-24 with your Oregon return or provide it 
and checks can’t read gel ink or certain colors, and           electronically through your Revenue Online account at 
using them will delay the processing of your return.              www.oregon.gov/dor. 

                                                               Form OR-243
Fiscal-year filers
                                                               Check this box if you are attaching Form OR-243, Claim 
Write the ending date of your fiscal year in the “Fiscal 
                                                               to Refund Due a Deceased Person.
year ending” box on the return.
                                                               Federal Form 8379
Oregon resident—Form OR-40-P only
                                                               Check this box if you’re requesting your joint refund be 
Enter the dates you were an Oregon resident during             apportioned and you are attaching federal Form 8379. 
2023. For example, “from 01/01/2023 to 04/15/2023,” or         For additional information, see “Injured spouse refund 
“from 03/01/2023 to 12/31/2023”                                claims” in Publication OR-17.

150-101-048-1 (Rev. 11-01-23)                               10 2023 Form OR-40-N and Form OR-40-P Instructions

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Federal Form 8886 • Once the IRS issues your ITIN, mail a copy of
your ITIN letter to us at PO Box 14999, Salem OR
Check this box if you filed federal Form 8886, Report- 97309-0990.
able Transaction Disclosure Statement.
Mailing address. Enter your current mailing address.
Disaster relief This is where we’ll send any refund or correspondence,
if needed. Enter your current daytime phone number.
If you were affected by a presidentially-declared natu-
ral disaster in 2023, check this box.
Filing status
Military
Check the box next to your filing status.
Check this box if you’re a nonresident with military 1 – 5
pay. See “Military personnel.” Generally, you must use the same fil-
ing status for your Oregon and federal returns. Choose
only one filing status.
Employment exception
Exception for Oregon RDPs.
Check this box if you have interstate transportation As an Oregon RDP, you’re
wages or you’re a waterway, air carrier, or hydroelectric not eligible to use the single filing status on your Ore-
dam worker. See the exceptions in the instructions for gon return. For Oregon, you’re generally required to
line 7S and the “Income” section in Publication OR-17 use married filing jointly or married filing separately.
for more information. 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 fed-
Name and address
eral return when each person had a different resi-
Type or clearly print your own and, if married, your dency status. Use Table 2 to determine which return
spouse’s name, date of birth, and Social Security num- form to use if you file a joint return or separate returns
ber (SSN). Enter your spouse’s information even if for Oregon.
you’re filing as married filing separately. If you’re fil- Table 2. Spouses with different residency status
ing for someone who died in 2023 or 2024, check the
“Deceased” box next to their name. Spouses’ If you file If you file
SSN. You must provide your SSN per Section 405, Title residency a joint separate
42, of the United States Code. We will only use it to status: return, use: returns:
establish your identity for tax purposes. Part-year and
OR-40-N
nonresident Each spouse uses
Follow these instructions if you’ve filed previous tax the form that
Nonresident and
returns using an Individual taxpayer identification OR-40-N matches their
full-year resident
number (ITIN) and this is your first year filing using individual
your new SSN: Part-year and residency status
OR-40-P
full-year resident
• Check the “First time using this SSN” box.
• Write your previous identification number on the first
How to file separate returns for Oregon
line of the “Amended statement” space on page 11 of
your return. If you’re filing a joint federal return but separate
Oregon returns, enter your spouse’s name, SSN, and
ITIN. If the IRS assigned you an ITIN because you don’t
date of birth on your return.
qualify for an SSN, enter your ITIN wherever an SSN is Report your own share
requested. Refunds will not be issued without a valid of federal AGI and deductions. Also, report your share
SSN or ITIN. of any Oregon additions or subtractions using this for-
mula to determine your percentage:
If you don’t have an ITIN, you must request one from
the IRS. To get an ITIN application (federal Form W-7), Your share of federal AGI Your percentage
=
go to www.irs.gov or call 800-829-1040. Joint federal AGI (not to exceed 100%)

If you’ve applied for an ITIN but you haven’t received Check the “Calculated using ‘as if’ federal return”
it yet: box on your return. You must include the following
forms with both Oregon returns:
• Check the “Applied for ITIN” box.
• File your return by April 15, 2024. • A federal Form 1040, 1040-SR, or 1040-NR with Sched-
• Don’t include Form W-7 with your return. Keep it ules 1 through 3 (if applicable) prepared as if you had
with your records. filed as married filing separately.

150-101-048-1 (Rev. 11-01-23) 11 2023 Form OR-40-N and Form OR-40-P Instructions

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• A copy of the joint Form 1040, 1040-SR, or 1040-NR If you qualify, check the “Severely disabled” exemption
with Schedules 1 through 3 (if applicable) that you box below line 6a. If your spouse qualifies, check the
actually filed with the IRS. “Severely disabled” exemption box below line 6b.
If the federal form you filed is an amendment, include Total exemptions for you and spouse. Enter the total
Form 1040-X and federal returns as amended for your number of exemptions claimed for yourself on line 6a
actual and “as if” returns. and for your spouse on line 6b.
If possible, mail both spouses’ Oregon returns in the
All dependents. Enter your dependents’ infor-
same envelope. Don’t staple the returns together. 6c
mation in order from youngest to oldest. For
For more information, see “Filing status” in Publication each dependent, list their first name, last name, rela-
OR-17. tionship code (see Table 3), SSN, and date of birth. In
most cases, you will list the same dependents you
claimed on your federal return.
Exemptions
You can list up to three dependents on the return. If
Yourself and spouse. If no one else
6a & 6b you have more than three dependents, fill out Schedule
can claim you as a dependent on their OR-ADD-DEP for your remaining dependents. If you
return, check the “Regular” exemption box below line have more than eight dependents, fill out and include
6a for yourself; otherwise, check the “Someone else can an additional Schedule OR-ADD-DEP. Do not list the
claim you as a dependent” box below line 6a, even if the same dependents on your return and on Schedule
other person doesn’t actually claim you as a dependent. OR-ADD-DEP.
Check the “Regular” exemption box below line 6b if Include Schedule OR-ADD-DEP with your return. You
no one else can claim your spouse as a dependent and can download the schedule from our website or contact
you’re filing as: us to order it.
• Married filing jointly. On line 6c, enter the total number of your depen-
• Married filing separately and your spouse has no
dents, including the number from line 1 of Schedule
income.
OR-ADD-DEP.
Otherwise, check the “Someone else can claim you as a
Table 3. Relationship codes
dependent” box below line 6b, even if the other person
doesn’t actually claim your spouse as a dependent. Title Code Relationships included
Severely disabled. Did you or your spouse have a Child SD Biological or adopted child.
severe disability at the end of 2023? If so, you can claim Stepchild SC Stepchild.
an additional exemption. This is different from the dis- Foster child FC Foster child.
abled child exemption. You may qualify for and claim Sibling SB Sibling, half sibling, stepsibling,
the severely disabled exemption even if someone else or sibling-in-law.
can claim you as a dependent. You’re considered to Parent PT Parent, stepparent, or
have a severe disability if any of the following apply: parent-in-law.
• You permanently lost the use of one or both feet. Spouse SP Spouse or RDP.
• You permanently lost the use of both hands. Grandparent GP Grandparent or
• You’re permanently blind. great-grandparent.
• You have a permanent condition that, without special Grandchild GC Grandchild or great-grandchild.
equipment or outside help, limits your ability to earn Aunt/Uncle AU Parent's sibling or the sibling's
a living, maintain a household, or transport yourself. spouse or RDP.
• You’re unable to earn a living due to a permanent Niece/Nephew NN Sibling's child, grandchild, or
condition or an impairment of indefinite duration. other descendant.
If you have a severe disability, your physician must Other relative OR Child's spouse or RDP, cousin, or
write a letter describing it. Keep the letter with your other related individual.
records in case we request a copy. No relation NR Unrelated qualifying individual.

150-101-048-1 (Rev. 11-01-23) 12 2023 Form OR-40-N and Form OR-40-P Instructions

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Children with a disability. You may be entitled — Other health impairment.
6d
to an additional personal exemption for your — Specific learning disability.

dependent child who has a qualifying disability. To — Traumatic brain injury.
qualify, all of the following must be true: — Visual impairment (including blindness).
• Your child (age 21 or younger) qualified as your Each year, you must be able to provide an eligibility
dependent for 2023. statement confirming that your child has been diag-
• Your child was eligible for early intervention services nosed with one of the disabilities listed above and a
or special education as defined by the State Board of cover sheet from one of the following:
Education of the state where the child attends school.
• The child’s Individualized Education Program (IEP).
• Your child had an eligible disability as of Decem-
• The child’s Individualized Family Service Plan (IFSP).
ber 31, 2023 under the federal Individuals with Dis-
abilities Education Act. Eligible disabilities include: Keep the statement and cover sheet with your records.
Check the “Check if child has a qualifying disability“
— Autism spectrum disorder.
box next to the name of each child with a qualifying
— Communication disorder.
disability. Enter the total number of children with a
— Deafblindness.
qualifying disability, including the number of children
— Developmental delay.
on line 2 of Schedule OR-ADD-DEP, on line 6d.
— Emotional disturbance.
— Hearing impairment (including deafness). Total exemptions. Add lines 6a through 6d and
— Intellectual disability. 6e
— Orthopedic impairment. enter the total on line 6e. This is your total num-
ber of exemptions.

150-101-048-1 (Rev. 11-01-23) 13 2023 Form OR-40-N and Form OR-40-P Instructions

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Forms OR-40-N and OR-40-P

line instructions

Don’t enter cents. You must round off cents to the Full-year residents. Oregon taxes your income from
nearest whole dollar. For example, $99.49 becomes $99 all sources. If you’re a full-year resident filing jointly
and $99.50 becomes $100. If you don’t round entries to on Form OR-40-N or Form OR-40-P, all of your income
the nearest dollar, there may be small variations in the in the federal column must be included in the Oregon
totals we use. column.

The forms have two columns for figures. These are to Wages, salaries, and other pay for work. Part-
show your federal adjusted gross income (AGI), addi- 7S
tions, and subtractions. The columns compare your total year residents— enter amounts you earned
while an Oregon resident and any amounts you earned
(column F) to the portion that Oregon taxes (column S). working in Oregon while you were a nonresident.
You must include a copy (front and back) of your fed- Full-year residents— enter all of your income included
eral return, including Schedules 1 through 3 (if appli- in the federal column.
cable), with your Oregon return. This helps us verify
your income and process your return faster. If you Nonresidents—enter the amount you earned while
don’t include your federal return with your Oregon working in Oregon for each job. If that amount differs
return, items claimed on your return may be adjusted from the Oregon wages on your Form W-2, request a
or denied. signed statement from your employer verifying the
number of days worked in Oregon and the total num-
ber of days worked everywhere. Keep this document
Federal column (F) instructions,
and a statement explaining your calculations with
lines 7F–29F your records. If your Oregon wages aren’t stated sepa-
rately on your Form W-2, compute your Oregon-source
The first column is called “Federal column (F).” For
income using the following formula:
lines 7F–29F of the federal column, transfer the amounts
you reported on your federal return. If you used Form Days actually worked in Oregon Total Oregon
1040 or 1040-SR, these will be the amounts on lines 1a × wages = wages
through 11 and Schedule 1, lines 1 through 26. Days actually worked everywhere (line 7F) (line 7S)

Line 29F, “Income after adjustments,” must match Don’t include holidays, vacation days, and sick days as
your 2023 federal AGI from Form 1040, 1040-SR, or days actually worked. However, you must include sick
1040-NR, line 11; or Form 1040-X, line 1C. If it doesn’t pay, holiday pay, and vacation pay in total wages. See the
match, check that you transferred the figures from example below. If Oregon is the only state you worked
your federal return correctly. in, don’t use this formula; all your earnings are taxable
and should be reported in the Oregon column.
Oregon column (S) instructions, Example: Savannah lives in Idaho but works in Oregon.
lines 7S–29S Of her 260 total days paid, she worked 138 days in Ore-
gon and 92 days from her home in Idaho. She received
The second column is called “Oregon column (S).” Use 14 days vacation pay, eight days sick pay, and eight days
this column to list the amounts from the federal col- holiday pay. She earned $50,000 in wages. She figured
umn that are taxed by Oregon. the amount subject to Oregon tax as follows:

Nonresidents. Oregon taxes only your income from Total days paid 260
Oregon sources. To determine your Oregon-source Less: Vacation days -14
income, see “What does income from Oregon sources
Sick days -8
include?” in the “General information” section.
Holidays -8
Part-year residents. Oregon taxes your income from all
Total days worked everywhere 230
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 Days actually worked in Oregon
your Oregon-source income, see “What does income (138) $50,000
× (Total = $30,000
from Oregon sources include?” in the “General infor- Days actually worked everywhere wages)
mation” section. (230)

150-101-048-1 (Rev. 11-01-23) 14 2023 Form OR-40-N and Form OR-40-P Instructions

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Savannah’s compensation reported in the federal col- Dividend income. Determine the amount of div-
9S
umn, Form OR-40-N, line 7F is $50,000 and in the Ore- idends on line 9F that you received from an Ore-
gon column, Form OR-40-N, line 7S is $30,000. gon business activity source while you were a nonresi-
dent. This includes dividends passed through to you
Exceptions from an S corporation or partnership doing business in
Oregon or providing services for Oregonians. These are
Interstate employment. Check the “Employment
dividends your S corporation or partnership received
exception” box on page 1 and don’t include the follow- on the stock of another corporation. Add any dividend
ing types of compensation in the Oregon column of the income included on line 9F that you received during
return if you’re a nonresident who works: the part of the year you were an Oregon resident.
• For an interstate transportation provider and whose
State and local income tax refunds. If you
wages qualify for special treatment under the federal 10S
laws formerly known as the “Amtrak Act.” received an income tax refund from another
state or local government that is included in your fed-
• On the Bonneville, The Dalles, John Day, or McNary eral income, and you deducted those taxes on a prior
hydroelectric dams. year’s Oregon return, include the refund in your Ore-
• As a crewmember or pilot on a vessel in interstate gon income. This refund is not taxable to Oregon if you
navigable waters. did not deduct the taxes on an Oregon return.
If you’re a nonresident who works as a crewmember or Oregon doesn’t tax Oregon state income tax refunds
pilot on aircraft in Oregon and at least one other state, you received, so don’t include amounts received from
you may be able to exclude your compensation from Oregon on line 10S.
the Oregon column.
Alimony received. Enter alimony you received
See the “Income” section of Publication OR-17 for 11S
details about these exceptions. for the part of the year you were an Oregon
resident.
Military. Check the “Military” box on page 1 of the
Business income or loss. Determine the amount
return if you’re a: 12S
of income or loss from an Oregon business activ-
• Nonresident member of the U.S. Armed Forces sta- ity for the part of the year you were a nonresident. Add
tioned in Oregon. Military pay of a nonresident isn’t all business income or losses incurred during the part
Oregon-source income. Don’t report your military of the year you were a resident of Oregon.
pay in the Oregon column on line 7S. If you have
Capital gain or loss. Determine the amount of
another job, those wages are taxable to Oregon and 13S
must be included on line 7S. Only your military pay gain or loss and capital gain distributions from
Oregon sources for the part of the year you were a non-
is exempt.
resident. Add the amount of your capital gains received
• Nonresident military spouse. Your wages are exempt and losses incurred during the part of the year you
from state tax if you’re only in Oregon because your were an Oregon resident. Limit losses to $3,000 ($1,500
spouse is stationed here. Don’t report your wages in if married filing separately).
the Oregon column on line 7S. File Form OR-40-N
Other gains or losses. Determine the amount of
if you had non-wage Oregon income or to claim a 14S
refund of Oregon tax withheld from wages. gain or loss from Oregon sources for the part of
the year you were a nonresident. Add the gain received
If Oregon taxes were withheld from your exempt or loss incurred during the part of the year you were an
wages, you should file a new withholding form with Oregon resident.

your employer. Use Form OR-W-4 and follow the IRA distributions. Determine the amount of any
instructions to declare that you’re exempt using the 15S
appropriate code and give the form to your employer. taxable individual retirement arrangement (IRA)
distributions you received while an Oregon resident.
You can download Form OR-W-4 and instructions Include any amounts you converted from a regular IRA
from our website or you can contact us to order it. into a Roth IRA while you lived in Oregon. If you lived
in another state when you made contributions to your
Taxable interest income. Determine the amount
8S IRA, you may need more information. If so, contact us.
of interest income on line 8F that you received
from an Oregon business activity while you were a Pension and annuities. Enter the amount of tax-
16S
nonresident. Add any interest included on line 8F that able pensions and annuities (including federal

you received during the part of the year you were an pensions), you received while an Oregon resident. Don’t
Oregon resident. include any Railroad Retirement Benefits (RRB-1099-R).

150-101-048-1 (Rev. 11-01-23) 15 2023 Form OR-40-N and Form OR-40-P Instructions

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If you’re domiciled in Oregon, you must also include Determine the amount you paid during the part of the
any Oregon-source pensions you received. This is true year you were an Oregon resident. Add the amount cal-
even though you may qualify to file as a nonresident culated for the time you were a nonresident.
under the tests for special case Oregon residents or
Oregon residents living abroad. • IRA. Use the following formula to determine
your deduction for the part of the year you were a
For example, if you lived in Oregon before you retired nonresident:
and have not changed your permanent home to
another state, you must report the pension you earned Oregon earned income IRA
while a nonresident contributions Nonresident
while you worked in Oregon. If you have a federal pen- × =
Total earned income made while a deduction
sion, you may qualify for a subtraction on Schedule OR- while a nonresident nonresident
ASC-NP. If you need help, contact us.
• Self-employed SEP, SIMPLE, and qualified plans.
Schedule E income. Determine the income
17S Use the following formula to determine your allow-
received and losses incurred from rents, royal- able deduction for the part of the year you were a
ties, partnerships, S corporations, real estate invest- nonresident:
ment trusts (REITs), estates, trusts, etc. reported on fed-
eral Schedule E from Oregon sources during the part Oregon compensation Contributions
Nonresident
of the year you were a nonresident. Add the amount while a nonresident × made while a =
deduction
received or incurred during the part of the year you Total compensation nonresident
while a nonresident
were an Oregon resident.
This deduction can’t be more than the amount of
Farm income or loss. Determine the amount compensation included in the Oregon column.
18S
of income received or loss incurred from an
Education deductions. The following instruc-
Oregon farm while you were a nonresident. Add the 22S
amount of farm income received or loss incurred dur- tions will help you figure the amount you can
ing the part of the year you were an Oregon resident. claim on your Oregon return.
Unemployment insurance (UI) benefits and all • Educator expenses deduction from federal Form
19S 1040 or 1040-SR, Schedule 1, line 11. For the part of the
other taxable income. Include on line 19S:
year you were a nonresident, determine the amount
• UI benefits received from an Oregon job or while an
of qualified educator expenses you paid while work-
Oregon resident,
• Oregon Lottery winnings (see additional informa- ing in or providing educator services to students in
tion below), Oregon elementary or secondary schools. Add the
• Other winnings received while an Oregon resident, qualified educator expenses you paid during the part
• Severance pay received from an Oregon job or while of the year you were an Oregon resident. Enter the
an Oregon resident, and smaller of the result or the amount deducted on your
• Any other taxable income on line 19F from Oregon federal return.
sources or received while an Oregon resident. • Student loan interest deduction from federal Form
Don’t include Social Security, Railroad Retirement 1040 or 1040-SR, Schedule 1, line 21.
Board benefits, or Railroad Retirement Board unem-
Use the following formula to calculate your deduc-
ployment benefits, as Oregon doesn’t tax this income.
tions for the part of the year you were a nonresident:
Include all payments received from the Oregon Lot-
Oregon-source income Student
tery in the Oregon column. Oregon Lottery means all while a nonresident loan interest Nonresident
games offered by the Oregon State Lottery Commis- × =
Total income from all paid while a deduction
sion and purchased in Oregon. For more information, sources while a nonresident nonresident
see Publication OR-17.
Add all interest paid during the part of the year
you were an Oregon resident. Enter the result or the
Adjustments
amount of federal student loan interest from your
IRA or self-employed SEP and SIMPLE contri- federal return, whichever is less.
21S
butions. Oregon follows the federal definition Add the Oregon amounts for your educator expenses
of earned income and compensation used to calcu- deduction and student loan interest deduction. Enter
late your IRA and other retirement plan deductions. the total on line 22S.

150-101-048-1 (Rev. 11-01-23) 16 2023 Form OR-40-N and Form OR-40-P Instructions

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Moving expenses. Enter moving expenses in the
23S Additions
Oregon column only if all of the following are
true for you (or your spouse, if filing jointly):
Total additions from Schedule OR-ASC-NP. Addi-
• You are on active duty in the United States Army, 30F/S
Navy, Air Force, Marines, or Coast Guard. tions are reported on Schedule OR-ASC-NP.
From Schedule OR-ASC-NP, enter the total on line B7 in
• Your expenses are deductible on your federal return the federal column and the total on line B8 in the Ore-
because they are related to a permanent change of gon column. If you’re reporting an addition, you must
station (known as a PCS move). include Schedule OR-ASC-NP with your return.
• Your new duty station is in Oregon.
For more information about additions, see Schedule
• You have taxable income from employment (military,
OR-ASC and OR-ASC-NP Instructions or “Additions”
civilian, or self-employment) performed in Oregon.
in Publication OR-17.
Deductions for self-employment tax. Use the
24S
following formula to determine the amount of
Subtractions
your self-employment tax on earnings taxed by Oregon:
Self-employment earnings Federal Social Security and tier 1 Railroad Retirement
taxed by Oregon deduction 32F
× for self- = Board benefits. Enter Social Security and tier
Oregon
Total taxable self- employment 1 Railroad Retirement Board benefits you included on
deduction
employment earnings tax line 7F or 19F.
The Oregon deduction can’t be more than the federal If you have tier 2, windfall/vested dual, or supplemen-
deduction. tal Railroad Retirement Board benefits, these are sub-
tracted on Schedule OR-ASC-NP. For more information,
25S see Schedule OR-ASC and OR-ASC-NP Instructions or
Self-employed health insurance deduction. Ore-
“Subtractions” in Publication OR-17.
gon 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. 33F/S
Total subtractions from Schedule OR-ASC-NP.
Add the health insurance premiums paid by your Ore- Other subtractions not explained here are claimed on
gon business while a nonresident. Your total Oregon Schedule OR-ASC-NP. From Schedule OR-ASC-NP,
deduction can’t be more than your federal deduction. enter the total on line C7 in the federal column and the
total on line C8 in the Oregon column. If you claim a
Alimony paid. Determine if the alimony you
26S subtraction on Schedule OR-ASC-NP, you must include
paid to your former spouse is deductible for fed- the schedule with your return.
eral purposes. If so, use the following formula to calcu-
late your Oregon deduction for the part of the year you For more information about subtractions, see Schedule
were a nonresident: OR-ASC and OR-ASC-NP Instructions or “Subtrac-
tions” in Publication OR-17.
Oregon-source income
while a nonresident Alimony Oregon percentage. In most cases, to find
Nonresident
× paid while a = 35
Total income nonresident your Oregon percentage, divide the amount on
deduction
while a nonresident line 34S by the amount on line 34F. If the amount on
Add to that amount the alimony you paid while you line 34S is more than the amount on line 34F or if the
amount on line 34S is positive but the amount on line
were a resident.
34F is zero or negative, your Oregon percentage is 100
Total adjustments from Schedule OR-ASC-NP. percent. If both amounts are negative, treat both as if
27F/S they’re positive, and then:
Other adjustments not explained here are
claimed on Schedule OR-ASC-NP. From Schedule OR- • If the Oregon number is smaller than the federal
ASC-NP, enter the total on line A7 in the federal col- number, your Oregon percentage is 100 percent.
umn and the total on line A8 in the Oregon column. • If the federal number is smaller than the Oregon
If you’re reporting an adjustment, you must include number, divide the federal number by the Oregon
Schedule OR-ASC-NP with your return. number.
For more information about adjustments, see Sched- Round the decimal to three places and enter the result
ule OR-ASC and OR-ASC-NP Instructions or “Adjust- as a percentage as shown in the examples. Don’t enter
ments” in Publication OR-17. more than 100 percent or less than 0.

150-101-048-1 (Rev. 11-01-23) 17 2023 Form OR-40-N and Form OR-40-P Instructions

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Table 4. Oregon percentage examples Standard deduction—Age 65 or older, or blind. If you
Line 34S Line 34F Oregon percentage line 35 or your spouse turned age 65 by January 1, 2024, or
$8,000 ÷ $30,000 = 0.266666 Round to 0.267 were blind at the end of the tax year, you’re entitled
(__2__6__7.__% ) to a larger standard deduction. If you or your spouse
$20,000 ÷ $15,000 = 1.333 Limited to 1.000 are permanently blind, you may also qualify for the
(1__0__0 0__.__%) severely disabled exemption credit; see the instructions
-$1,000 ÷ $15,000 = 0 (0%) for lines 6a and 6b.
(__ __0__0.__% ) Check the applicable boxes below line 38, then multiply
$1,000 ÷ -$5,000 = (100%) the number of boxes checked by:
(1__0__0 0__.__%)
-$2,000 ÷ -$8,000 = Oregon number smaller than • $1,200 if single or head of household filing status; or
2,000 8,000 federal number • $1,000 for all other filers.
(1__0__0 0__.__%) Add this amount to the standard deduction for your fil-
-$10,000 ÷ -$6,000 = Federal number smaller than ing status from Table 5. Enter the total on line 38.
10,000 6,000 Oregon number
6,000 / 10,000 = 0.6 Example: Joni and Mike are married. By January 1,
(__6__0__0.__% ) 2024, Joni had turned 61 and Mike had turned 67. Joni
files the return as the primary taxpayer. She checks the
box for spouse 65 or older and adds $1,000 to their stan-
Deductions and modifications dard deduction. Joni enters $6,210 ($5,210 + $1,000) on
Deductions and other modifications further adjust your line 38.
Oregon taxable income. Modifications not explained Standard deduction—Dependents who can be claimed
here are reported on Schedule OR-ASC-NP. For more on another taxpayer’s return. If someone else can claim
information about deductions and modifications, see you as a dependent, your standard deduction is limited
Schedule OR-ASC and OR-ASC-NP Instructions, or
to the larger of:
Publication OR-17.
• Your earned income plus $400, up to the maximum
In general, you can claim Oregon itemized deductions or
allowed for your filing status (see Table 5); or
the standard deduction, whichever is larger, but not both.
• $1,250.
See the exceptions for:
• Dependents who can be claimed on another taxpay- This limit applies even if the other person doesn’t actu-
er’s return. ally claim you as a dependent on their return.
• Non-U.S. citizens without permanent resident status. If you’re a dependent and not married, use the follow-
• Spouses filing separate returns. ing worksheet to figure your standard deduction. If
you’re a dependent and married, see “Deductions and
Itemized deductions. If you’re itemizing your
37 modifications” in Publication OR-17.
deductions for Oregon enter the amount from
Schedule OR-A, line 23. Note: Don’t enter your federal Standard deduction worksheet for single dependents
itemized deductions; the amount allowed for Oregon
1. Enter your earned income (see 1.
may be different. You can download Schedule OR-A
definition below).
and the instructions from our website or you can con-
tact us to order it. 2. Additional $400. 2. $400
If you’re not itemizing, enter 0. 3. Add lines 1 and 2. 3.
Standard deduction. Generally, your standard 4. Minimum standard deduction. 4. $1,250
38
deduction is based on your filing status, as 5. Enter the larger of line 3 or line 4. 5.
shown in Table 5. 6. Basic standard deduction for 6. $2,605
Table 5. Standard deduction single.
7. Enter the smaller of line 5 or line 6. 7.
Single $2,605
Married filing jointly $5,210 8. If you turned 65 by 1/1/2024, 8.
enter $1,200. Otherwise, enter 0.
Married filing separately
• If spouse claims standard deduction $2,605 9. If you’re blind, enter $1,200. 9.
Otherwise, enter 0.
• If spouse claims itemized deductions 0
Head of household $4,195 10. Add lines 7, 8, and 9. This is your 10.
standard deduction.
Qualifying surviving spouse $5,210

150-101-048-1 (Rev. 11-01-23) 18 2023 Form OR-40-N and Form OR-40-P Instructions

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Earned income includes salaries, wages, tips, profes-
sional fees, or other amounts received as pay for work Federal tax worksheet

you actually performed, and any part of a scholarship Note: All references to federal Form 1040 in this work-
or fellowship grant you received that is included in sheet also include references to Forms 1040-SR and
your federal gross income. 1040-NR, unless otherwise indicated. This also includes
versions of these forms in other languages.
Standard deduction—Non-U.S. citizens without per-
Instructions for Federal tax liability subtraction
manent resident status. Your standard deduction is $0,
worksheet
but you may claim itemized deductions.
Line 1: Enter your federal tax liability after nonrefund-
Standard deduction—Married filing separately. The able credits but before other taxes. This is found on
standard deduction for married individuals filing sep- Form 1040, line 22.
arately is $0 if one spouse itemizes. This applies even Line 2: If you need to repay any of the advance pre-
if the standard deduction is more than your itemized mium tax credit that you received during the year, enter
deductions. the repayment amount claimed on Form 1040, Schedule
2, line 2. If not, enter 0.
2023 federal tax liability subtraction. Complete
40 Line 3: Line 1 minus line 2. If the results are less than
the following worksheet to determine your fed-
0, enter 0.
eral tax liability subtraction for 2023. Carefully follow
the instructions. Don’t confuse your federal tax liabil- Line 4: Enter the total of any other taxes, plus any addi-
tions to tax that include only income tax, such as tax
ity on your federal return with the federal tax with-
credit recaptures, from Form 1040, Schedule 2, lines 8,
held on a Form W-2. They aren’t the same. RDPs and
16, and 17. Also include the amount reported on Sched-
those filing as “married filing separately for Oregon ule 2, line 10, only if you’re repaying a 2008 first-time
only,” use amounts from your actual federal return(s), homebuyer credit and filing federal Form 5405. Include
not your “as if” return. any tax on non-effectively connected income from
Form 1040-NR, line 23a. Don’t include any additions to
The federal tax liability subtraction limit for 2023 is $7,800 tax from Schedule 2, line 17 that are penalties, interest,
($3,900 if married filing separately). The subtraction is excise tax, or other amounts that aren’t income tax. If
further limited by the AGI phase-outs shown in Table 6. you have no other taxes, enter 0.
Note: Use the worksheet(s) in the “Federal income tax Line 5: Add lines 3 and 4. This is your federal income
tax liability before refundable credits.
liability” section of Publication OR-17 if any of these
situations apply: Line 6: Enter your American Opportunity credit from
Form 1040 or 1040-SR, line 29.
• You‘re amending your 2023 federal return or we cor-
rected the federal tax liability subtraction on your Line 7: Enter your total premium tax credit amount
original 2023 Oregon return. from federal Form 8962, line 24. This is your allowable
premium credit regardless of any excess advance pay-
• A prior year’s federal return was audited or amended,
ments you received or credit you’re claiming on your
resulting in additional federal tax paid or refunded federal return.
in 2023.
Line 8: Add lines 6 and 7. These are the total refund-
• You paid income tax to a foreign country.
able credits that must be subtracted from your federal
• You filed your federal return on Form 1040-NR. income tax liability.
• You reported recapture taxes or credits on your fed-
Line 9: Line 5 minus line 8. If less than 0, enter 0. This is
eral return.
your federal income tax liability after refundable cred-
Caution: Don’t include any of the following in your its (other than EITC).
calculation: Line 10: Enter your maximum allowable federal tax
• Self-employment tax. liability subtraction amount from Table 6. Don’t enter
• Social Security and Medicare tax on tips. more than your limit or less than zero.
• Household employment taxes. Line 11: Enter the smaller of line 9 or line 10. This is
• Penalties or interest. your federal tax liability subtraction.

150-101-048-1 (Rev. 11-01-23) 19 2023 Form OR-40-N and Form OR-40-P Instructions

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Federal tax liability subtraction worksheet                  Table 6. Federal tax liability subtraction AGI phase-out
1.  Federal tax liability (Form 1040        1.                               And your          Then your  
                                                                             federal adjusted  maximum 
    line 22).                                                                gross income is:  allowable 
                                                                                               tax liability 
2.  Excess advance premium tax              2.               If your filing           But less subtraction 
    credit (Form 1040, Schedule 2,                           status is:      At least— than—   is:
    line 2).                                                                 0        $125,000    $7,800
                                                                             $125,000 $130,000    $6,250
3.  Line 1 minus line 2. (If less than 0,   3.                               $130,000 $135,000    $4,700
    enter 0).                                                Single
                                                                             $135,000 $140,000    $3,100
4.  Other taxes (see instructions).         4.                               $140,000 $145,000    $1,550
                                                                             $145,000 or more              0
                                                                             0        $125,000    $3,900
5.  Line 3 plus line 4.                     5.
                                                                             $125,000 $130,000    $3,125
                                                             Married filing  $130,000 $135,000    $2,350
6.  American Opportunity credit             6.               separately      $135,000 $140,000    $1,550
    (form 1040, line 29).                                                    $140,000 $145,000    $775
                                                                             $145,000 or more              0
7.  Premium tax credit (Form 8962,          7.
                                                                             0        $250,000    $7,800
    line 24).                                                Married filing 
                                                             jointly; or     $250,000 $260,000    $6,250
8.  Line 6 plus line 7.                     8.               Head of         $260,000 $270,000    $4,700
                                                             household; or   $270,000 $280,000    $3,100
9.  Line 5 minus line 8. (If less than 0,   9.               Qualifying      $280,000 $290,000    $1,550
    enter 0).                                                surviving spouse
                                                                             $290,000 or more              0
10. Maximum subtraction amount             10.
                                                                   Total modifications from Schedule OR-ASC-NP. 
    from Table 6.                                            41
                                                                Enter the total from Schedule OR-ASC-NP, 
11. Smaller of line 9 or line 10.          11.               line D7. Include the schedule with your return. 
    This is your federal tax liability                       For more information about modifications, see “Deduc-
    subtraction.                                             tions and modifications” in Publication OR-17.

Are you amending your 2023 return? Usually you can’t 
change your federal tax subtraction on your amended 
return. See the “Federal income tax liability” section in 
Publication OR-17 for more information before making 
changes to this subtraction.

150-101-048-1 (Rev. 11-01-23)                             20       2023 Form OR-40-N and Form OR-40-P Instructions

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Example: Daniel and Madison are filing a joint return.
Form
OR-40-N 42 Their Oregon taxable income is $75,500. They use the
formula in Chart J for taxable income over $20,400 but
Deductions and modifications multiplied by the Ore- not over $250,000 to calculate their tax as follows:
gon percentage (Form OR-40-N filers only). Nonresi-
dents must complete the worksheet below to determine Tax on the first $20,400 $1,215
the amount of deductions and modifications they’re (from the chart)
entitled to claim. Oregon taxable income $75,500
1. Amount from Form OR-40-N, line 39. 1. Minus the first $20,400 – 20,400
Excess over $20,400 $55,100
2. Amount from Form OR-40-N, line 40. 2.
Multiply excess by 8.75% x 0.0875
3. Amount from Form OR-40-N, line 41. 3.
Tax on excess over $20,400 + $4,821
4. Add lines 1, 2, and 3 above. 4. Total Oregon tax $6,036
5. Oregon percentage from Form 5.
OR-40-N, line 35. Other tax methods. If you qualify, you can compute
your Oregon tax using any of the following methods:
6. Line 4 times line 5. Enter result on 6.
Form OR-40-N, line 42. These are your Farm income averaging method. Did you have income
Oregon deductions and modifications. from a farm? You may use the federal farm income
averaging method to compute your Oregon tax even if
you didn’t use farm income averaging on your federal
Form return. Only Oregon-source farm income is consid-
OR-40-N 43
ered elected farm income. Use Schedule OR-FIA-40-N
or OR-FIA-40-P to compute the Oregon tax using this
Charitable art donation (Form OR-40-N filers only).
method. You can download it from our website or con-
Artists who make a charitable art donation may take a
tact us to order it.
full deduction. See “Artist’s charitable contribution” in
Publication OR-17 to calculate this subtraction. If you use Schedule OR-FIA-40-N to calculate your
tax, enter the tax amount from Schedule OR-FIA-40-N,
line 21, on Form OR-40-N, line 46, and check box 46a.
Oregon tax
If you use Schedule OR-FIA-40-P to calculate your
tax, enter the tax amount from Schedule OR-FIA-40-P,
Form Form line 20, on Form OR-40-P line 44, and check box 44a.
OR-40-N 46 OR-40-P 44
Don’t include Schedule OR-FIA-40-N or Schedule
Tax rate charts. Calculate your tax using the applicable OR-FIA-40-P with your Oregon return. Keep it with
formula in the tax rate charts for your filing status. your records.
• Use Chart S if your filing status is single or married Farm asset capital gain method. Did you sell or
filing separately. exchange capital assets primarily used in farming
• Use Chart J if your filing status is married filing because you were getting out of a farming business?
jointly, head of household, or qualifying surviving Or, did you sell or exchange a farming business in
spouse. which you held at least a 10 percent ownership interest?

2023 Tax rate charts
Chart S: For persons filing single or married filing separately—
If your taxable income is not over $4,050 .......................................................................................your tax is 4.75% of taxable income
If your taxable income is over $4,050 but not over $10,200 ..........................your tax is $192 plus 6.75% of excess over $4,050
If your taxable income is over $10,200 but not over $125,000 ...................your tax is $607 plus 8.75% of excess over $10,200
If your taxable income is over $125,000 ........................................................your tax is $10,652 plus 9.9% of excess over $125,000

Chart J: For persons filing jointly, head of household, or qualifying surviving spouse—
If your taxable income is not over $8,100 .......................................................................................your tax is 4.75% of taxable income
If your taxable income is over $8,100 but not over $20,400 ..........................your tax is $385 plus 6.75% of excess over $8,100
If your taxable income is over $20,400 but not over $250,000 ...............your tax is $1,215 plus 8.75% of excess over $20,400
If your taxable income is over $250,000.......................................................your tax is $21,305 plus 9.9% of excess over $250,000

150-101-048-1 (Rev. 11-01-23) 21 2023 Form OR-40-N and Form OR-40-P Instructions

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If so, you may be eligible for a reduced tax rate on the the total from Schedule OR-ASC-NP, line E5. Include
net capital gain from the proceeds. Download Publica- Schedule OR-ASC-NP with your return.
tion OR-FCG from our website or you can contact us to
order it.
Credits—Nonrefundable
Nonresidents. Enter the tax amount from Publica-
tion OR-FCG, line 9 on Form OR-40-N, line 46 and Nonrefundable credits can’t be more than your Oregon
check box 46b. tax liability. Carryforward credits allow you to claim
unused amounts in a later year. Standard credits can’t
Part-year residents. Enter the tax amount from Publica- be used in any other year. For more information about
tion OR-FCG, line 9 on Form OR-40-P, line 44 and check nonrefundable credits, see Schedule OR-ASC and OR-
box 44b. ASC-NP Instructions or “Credits” in Publication OR-17.
Don’t include Publication OR-FCG with your return.
Keep it with your records. Form Form
OR-40-N 51 OR-40-P 50
Oregon qualified business income reduced tax rate.
Did you have business income from a sole proprietorship, Exemption credit. If your federal AGI is more than
partnership, or S corporation in which you materially par- $200,000 ($100,000 if your filing status is single or mar-
ticipated? If so, you may qualify to use this reduced tax ried filing separately), enter 0; otherwise, use this work-
rate. For details, see Schedule OR-PTE-NR or OR-PTE-PY sheet to figure your exemption credit:
on our website or you can contact us to order it.
Exemption credit worksheet
Note: If you elect to use this reduced tax rate for quali-
fying income, the election is irrevocable and must be 1. If your federal AGI is more 1.
made on your original return. An original return than $100,000 and your filing
includes an amended return filed on or before the due status is single or married filing
date, including extensions. You can’t change the elec- separately, or more than $200,000
tion after your original return has been filed. for all others, enter 0; otherwise,
enter the number of “regular”
Nonresidents. Enter the tax amount from Schedule OR- exemptions from lines 6a and 6b
PTE-NR, line 14a on Form OR-40-N, line 46 and check plus the number of dependents
box 46c. from line 6c. Don’t include any
Part-year residents. Enter the tax amount from Sched- “Severely disabled” or “Child
ule OR-PTE-PY, line 19a on Form OR-40-P, line 44 and with a qualifying disability”
check box 44c. exemptions.
Include the schedule with your Oregon return or sub- 2. If your federal AGI is more than 2.
mit it at www.oregon.gov/dor; click the link for Rev- $100,000, enter 0; otherwise,
enue Online and log in or create an account. enter the number of “Severely
disabled” exemptions from lines
Form Form 6a and 6b.
OR-40-N 47 OR-40-P 46
3. If your federal AGI is more than 3.
$100,000, enter 0; otherwise,
Interest on certain installment sales. Did you have
enter the number of exemptions
installment sales that required you to pay interest on
for children with a qualifying
the deferred tax liability for federal purposes? If so, you
disability from line 6d.
must also compute interest for Oregon using the same
method as for federal. The annual interest rate is 6 per- 4. Add lines 1, 2, and 3. 4.
cent for 2023 and 8 percent for 2024.
5. Line 4 times $236. 5.
Nonresidents. Use only those installment obligations
from dispositions of Oregon property. 6. Enter your Oregon percentage 6.
from Form OR-40-N or Form
Form Form OR-40-P, line 35, as a decimal.
OR-40-N 48 OR-40-P 47
7. Line 5 times line 6. Round to the 7.
nearest whole dollar. This is your
Total tax recaptures from Schedule OR-ASC-NP. All tax exemption credit.
recaptures are claimed on Schedule OR-ASC-NP. Enter

150-101-048-1 (Rev. 11-01-23) 22 2023 Form OR-40-N and Form OR-40-P Instructions

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Form Form Form Form
OR-40-N 52 OR-40-P 51 OR-40-N 59 OR-40-P 58

Total standard credits from Schedule OR-ASC-NP. All Estimated tax payments for 2023. Enter the total esti-
other standard credits are claimed on Schedule OR- mated tax payments you made before filing your
ASC-NP. Enter the total from Schedule OR-ASC-NP, 2023 Oregon return. For calendar-year filers, these
line F16. Include Schedule OR-ASC-NP with your payments were due April 18, 2023; June 15, 2023;
return. September 15, 2023; and January 16, 2024. If you’re
filing on extension, include any extension pay-
ment made on or before the due date (without exten-
Form Form sion), but don’t include any payments made after
OR-40-N 55 OR-40-P 54
April 15, 2024. Include any payments from real estate
Total carryforward credits from Schedule OR-ASC-NP. transactions. Don’t include the amount reported
All carryforward credits are claimed on Schedule OR- on Form OR-40-N, line 58; or Form OR-40-P, line
ASC-NP. Enter the total from Schedule OR-ASC-NP, 57. If you need to verify your estimated payments,
line G9. Include Schedule OR-ASC-NP with your log into or create your Revenue Online account at
return. www.oregon.gov/dor or contact us.

Form Form
Tax payments and refundable credits OR-40-N 60 OR-40-P 59

Form Form Tax payments from a pass-through entity (PTE). If you’re
OR-40-N 57 OR-40-P 56 an owner of a PTE with Oregon-source income and you
didn’t join in the filing of a composite return to report
Oregon income tax withheld. Enter the total Oregon that income, enter the amount of tax payments made by
tax withheld from your wages and other income. the PTE on your behalf.
State tax withheld from wages is shown in box 17 of
Note: Don’t claim the tax paid on your behalf on the
Form W-2 and in the State area of various 1099 forms.
composite return, Form OR-OC, as a tax payment on
Don’t include the FICA (Social Security) tax with-
your individual return. That payment was already used
held or tax withheld from your wages by other states.
to pay the tax on the income reported on Form OR-OC.
You must include a legible, unaltered copy of your
Form W-2 from each job and any Form 1099 showing Note: Do not include the PTE elective tax (PTE-E tax)
Oregon income tax withheld with your Oregon return. credit on this line. Refer to Publication OR-17 for more
information about the PTE-E tax credit.
If you don’t have a Form W-2 or 1099, you must provide
other proof of Oregon tax withheld. Proof may include Refundable credits. Refundable credits reduce the
a copy of a final paycheck stub or a letter from your amount of tax that you owe. Any amount that is more
employer. If you file before February 1, 2024, we can than your tax liability is treated the same way as an
accept only a Form W-2 or 1099 as proof. overpayment. Refundable credits not explained here
are claimed on Schedule OR-ASC-NP.
If you have tax to pay, you may want to increase the
amount your employer or other payer withholds For more information about refundable credits, see
from your wages or other income. For withholding the Schedule OR-ASC and OR-ASC-NP Instructions or
information, go to www.oregon.gov/dor. “Credits” in Publication OR-17.

Form Form Form Form
OR-40-N 58 OR-40-P 57 OR-40-N 61 OR-40-P 60

Amount applied from your prior year’s tax refund. Earned income credit. Oregon’s earned income credit
Enter the amount of any prior-year refund you applied is a percentage of the earned income tax credit (EITC)
as a payment of 2023 estimated tax. If we adjusted your claimed on your federal return. The percentage is based
applied refund, be sure to use the adjusted amount. on the age of your youngest dependent at the end of the
If you need to verify your applied refund amount, tax year. Note to RDPs: You may claim this credit if
log into or create your Revenue Online account at you would otherwise qualify for the EITC using your
www.oregon.gov/dor or contact us. “as if” federal return.

150-101-048-1 (Rev. 11-01-23) 23 2023 Form OR-40-N and Form OR-40-P Instructions

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Note: If you can’t claim the federal EITC or can only Credit amount. The Oregon Kids Credit is up to $1,000
claim a portion of the federal EITC because you, your per qualifying dependent.
spouse, or your child(ren) do not have an SSN that is
* Note for divorced, separated, or unmarried parents:
valid for work or are using an ITIN, you may qualify
Special rules apply when the exemption for a child is
for the earned income credit for ITIN filers. See Sched-
released by the parent with whom the child lives for
ule OR-EIC-ITIN Instructions or Publication OR-17 for
most of the year to the other (noncustodial) parent:
additional information.
• If a child is listed as a dependent on your Oregon
Use Table 7 and the following worksheet to figure your
return only because the custodial parent released the
credit.
child’s exemption to you, the child doesn’t qualify for
Table 7. EIC percentage this credit.
• A child whose exemption was released to the non-
Age of youngest dependent Percentage of custodial parent, but who otherwise qualifies as your
at end of tax year federal EITC dependent, qualifies for this credit even if the child
isn’t listed as your dependent on your Oregon return
At least 3 years old, or no
9 percent (0.09) due to the released exemption.
dependents
Instructions for Oregon Kids Credit worksheet
Younger than 3 12 percent (0.12)
Line 1. Nonresidents. If you show an amount other
than 0 on line 40, 41, or 43 of Form OR-40-N, subtract
Earned income credit worksheet
those amounts from Form OR-40-N, line 34F. Enter the
1. Enter your federal EITC from 1. total on line 1 of the worksheet.
Form 1040 or 1040-SR, line 27.
Part-year residents. If you show an amount other
2. Enter the percentage from the 2. than 0 on line 40 or 41 of Form OR-40-P, subtract those
table as a decimal. amounts from Form OR-40-P, line 34F. Enter the total
3. Line 1 times line 2. 3. on line 1 of the worksheet.
4. Enter your Oregon percentage 4. Line 3. This is your qualifying income. If this line is
from line 35, as a decimal. $30,000 or more, you can’t claim the Oregon Kids Credit.
5. Line 3 times line 4. This is your 5.
Line 14.
Oregon earned income credit. Your qualifying income includes losses
deducted from your federal AGI on your Form 1040,
if those losses total more than $20,000. Enter losses
Form Form claimed on your Form 1040 and Schedule OR-ASC-NP
OR-40-N 62 OR-40-P 61 (using subtraction codes 321, 355, 356, or 357), as listed

on lines 14a through 14g, and the total of those losses on
Oregon Kids Credit. The Oregon Kids Credit is avail- line 14h. If the amount shown on the referenced Form
able for low-income taxpayers with dependents age 5 or 1040 line is not a loss, do not enter it on the worksheet.
younger on their Oregon tax return. Enter all losses as positive numbers.
Eligibility. To be eligible for the Oregon Kids Credit, Example 1. Colten reported additional income from
you must: rental real estate on his Form 1040, Schedule 1, line 5 of
$8,000. He also reported his farm loss on his Form 1040,
1. Have a filing status of single, married filing jointly,
Schedule 1, line 6 of $6,000. Colten enters 0 on line 14d
head of household, or qualifying surviving spouse.
for rental real estate, as he did not have a loss reported
Those filing as married filing separately do not qual-
on his Form 1040 on Schedule 1, line 5. He enters 6,000
ify for this credit.
on line 14e, as he did report a farm loss on his Form
2. Have dependents age 5 or under at the end of 2023 1040, Schedule 1, line 6. Colten enters his total losses of
listed on your Oregon return.* $14,000 on line 14h. He enters 0 on line 14, since his total
losses minus 20,000 are less than 0.
3. Have a qualifying income of under $30,000, includ-
ing Oregon additions and subtractions. See work- Example 2. Michaela reported a business loss on her
sheet instructions below for more information. Use Form 1040, Schedule 1, line 4 of ($15,500). She would
the Oregon Kids Credit worksheet to figure your enter $15,500 on line 14b of the worksheet. She had
credit. a rental real estate loss reported on her Form 1040,

150-101-048-1 (Rev. 11-01-23) 24 2023 Form OR-40-N and Form OR-40-P Instructions

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Schedule 1, line 5 of ($8,000). She enters $8,000 on line 10. Credit reduction. Line 8 multiplied by 10.
14d of the worksheet. She has no other losses reported. line 9.
Michaela enters her total losses of $23,500 on line 14h. 11. Line 9 minus line 10. 11.
She enters $3,500 on line 14 (23,500 - 20,000). 12. Enter your Oregon percentage from 12.
Line 14b. If you claimed a subtraction using code 359 Form OR-40-N or Form OR-40-P,
or 385, compare your subtraction amount to the income line 35.
reported on Form 1040, Schedule 1, line 3. If the subtrac- 13. Line 11 multiplied by line 12. 13.
tion is less than your income, you don’t have a loss; skip This is your Oregon Kids Credit.
line 14b. Otherwise, subtract the income amount from Enter the amount from line 13 on Form OR-40-N,
the subtraction amount and enter the result on line 14b. line 62 or Form OR-40-P, line 61.
Oregon Kids Credit Worksheet Part B: Loss amount
Part A: Income 14. Enter your losses, as positive amounts, from:
1. Enter your income after subtractions 1. 14a. Capital (loss) from Form 14a.
from Form OR-40-N or Form OR-40-P, 1040, line 7.
line 34F (see instructions). 14b. Business (loss) from 14b.
2. Form 1040, Schedule 1,
2a. Did you claim any losses on Yes No line 3. If you claimed
your Form 1040? Oregon subtraction
2b. Did you enter an amount Yes No code 359 or 385, see
greater than 0 on your Form instructions.
OR-40-N or Form OR-40-P,
14c. Other (loss) from Form 14c.
line 33F?
1040, Schedule 1, line 4.
If you answered no to both 2a and
2b, enter 0 on line 2 and continue. 14d. Rental real estate, etc. 14d.
Do not complete Part B: Loss (loss) from Form 1040,
amount. Schedule 1, line 5.
If you answered yes to either 2a or 14e. Farm (loss) from Form 14e.
2b, complete Part B: Loss amount 1040, Schedule 1, line 6.
and enter the total from line 14 on 14f. Net operating loss from 14f.
line 2. 2. Form 1040, Schedule 1,
3. Line 1 plus line 2. 3. line 8a.
4. Enter the amount from Form 1040, 14g. Losses from Schedule 14g.
line 11. 4. OR-ASC-NP, Section C
5. If line 4 is more than line 3, enter the (codes 321, 355, 356, and
amount from line 4 here. Otherwise, 357).
enter the amount from line 3. 5.
14h. Add lines 14a through 14h.
Is line 5 $30,000 or more?
14g.
If yes, STOP. You can’t claim the
Oregon Kids Credit. Line 14h minus 20,000. If less than 14.
If no, continue to line 6. zero, enter 0.
6. Phaseout amount 6. $25,000 Enter the amount from line 14 on Part A, line 2
7. Line 5 minus line 6. If less than zero, 7. of the worksheet.
enter 0.
8. Line 7 divided by $5,000. Round to two 8.
decimal places. Form Form
9. Credit amount before phaseout: OR-40-N 63 OR-40-P 62

9a. Number of dependent 9a.
Kicker (Oregon surplus) credit. The Oregon surplus
children age five or
credit, known as the “kicker,” is a way for state govern-
younger at the end of
ment to return some of your taxes to you when reve-
2023. Don't enter more
nues are more than predicted. The Oregon Department
than 5.
of Administrative Services determines whether there is
9b. Maximum credit amount 9b. $1,000
a surplus and the amount to be returned to taxpayers as
per child.
a kicker. If there’s a surplus, the kicker may be claimed
Line 9a multiplied by line 9b. 9. on the return as a refundable tax credit. If there’s no
surplus, there’s no kicker.

150-101-048-1 (Rev. 11-01-23) 25 2023 Form OR-40-N and Form OR-40-P Instructions

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Eligibility. To be eligible for a kicker, you must:           Part C— Add individual kicker amounts together for 
                                                                    joint 2023 returns, if necessary. 
1. File your 2022 Oregon return before you file your 
2023 return.                                                  If you’re completing Part B or Part C, you may need to 
                                                              use Part A or Part B more than once.
2. Have an Oregon tax liability for 2022. 
                                                              Same filing and marital status. For most taxpayers, all 
3. File a 2023 Oregon return, even if you don’t otherwise 
                                                              you need to do is multiply your 2022 total Oregon per-
have a filing requirement. 
                                                              sonal income tax liability times 0.4428. You can also use 
Kicker amount. In general, your kicker is a percentage        Part A of the worksheet.
of your total Oregon personal income tax liability for the 
                                                              Change in filing or marital status. Some taxpayers 
prior year, as adjusted or amended. Your total personal 
                                                              who filed a joint return for 2022 must prorate their 
income tax liability is your Oregon income tax before all 
                                                              kicker based on their share of 2022 federal AGI. Some 
payments or credits other than the credit for taxes paid 
                                                              taxpayers whose filing or marital status was different 
to another state. For 2023, your kicker is 44.28 percent 
                                                              in 2022 may need to combine their kickers on a joint 
of your 2022 total Oregon personal income tax liability. 
                                                              2023 return. Use Table 8 to see if you need to prorate 
Amended 2022 returns. If your 2022 return is amended          your kicker using Part B and/or combine your kickers 
or adjusted after you file your 2023 return, we will auto-    using Part C.
matically adjust your kicker amount. If the changes to 
                                                              Table 8: Prorated and/or combined kickers.
your 2022 return reduce your tax liability, your kicker 
amount may be reduced as well. If so, we may send you                        Complete Parts A and B if:
a bill for the amount of the reduction along with any 
interest or penalty.                                          Your filing status in
                                                                                                  And:
                                                              2022 was:      2023 is:
Kicker donation. Personal income taxpayers may elect 
to donate their kicker to the Oregon State School Fund        Joint          Non-joint You were divorced in 2022 
for public K-12 education.    This election is irrevocable                             or you’re married but filing 
after the due date of the original return. When you file                               separate returns.
your return, you must choose to do one of the following:      Joint          Non-joint Your spouse died in 2022 and 
                                                                                       their personal representative 
• Claim all of your kicker credit; or                                                  or estate is filing a separate 
• Donate all of your kicker to the State School Fund.                                  2023 return on their behalf.
If you want to donate only a part of your kicker, you 
first have to claim all of your kicker credit on your                   Optional:  Complete Part A if:
return. Then, once you receive it, use it to make your 
                                                              Your filing status in
donation. The Oregon State School Fund’s address is:                                              And:
                                                              2022 was:      2023 is:
Oregon Department of Education
Attn: OFA Cashier                                             Joint          Joint     You had the same spouse in 
255 Capitol St NE                                                                      both 2022 and 2023.
Salem OR 97301                                                Non-joint      Non-joint
                                                              Joint          Joint or  Your spouse died in 2022 and 
How to calculate your kicker amount
                                                                             non-joint no separate 2023 return is 
Online assistance.   Revenue Online can calculate your                                 being filed on their behalf, or 
kicker amount if:                                                                      your spouse died in 2023.
• Your filing status was the same for 2022 and 2023, and
• You filed with the same spouse (if married) for both        Deceased taxpayer. The surviving spouse of a deceased 
years.                                                        taxpayer may claim the full amount of the kicker if a 
                                                              joint return was filed for 2022. A deceased taxpayer’s 
Look for “What’s my Kicker” on Revenue Online at 
                                                              personal representative may file a 2023 return on the 
  www.oregon.gov/dor. 
                                                              taxpayer’s behalf to claim their kicker.
Kicker worksheet. This worksheet can help you calcu-
                                                              How do I find my 2022 total Oregon personal income 
late your kicker amount. It’s divided into three parts: 
                                                              tax liability? Use Table 9 and your 2022 Oregon return 
Part A— Calculate your 2022 total personal income tax         to locate your tax before credits and any credit(s) 
       liability and kicker amount.                           you claimed for income taxes you paid to another 
Part B— Prorate your total personal income tax liabil-        state (using code 802 or 815) on Schedules OR-ASC or 
       ity, if necessary.                                     OR-ASC-NP.

150-101-048-1 (Rev. 11-01-23)                              26 2023 Form OR-40-N and Form OR-40-P Instructions

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Table 9: Where to find tax liability.                         Use a reasonable method to divide joint income (such 
                                                              as capital gains from the sale of jointly-owned property 
If you filed: Tax before      Credits using code 802          or interest on joint bank accounts) and adjustments. If 
              credits:                or 815 from:            the 2022 federal AGI on a joint return was zero or less, 
Form OR-40         Line 22    Schedule OR-ASC, Section C      but the Oregon tax liability was more than zero, contact 
                                                              us for help.
Form OR-40-N       Line 48    Schedule OR-ASC-NP,             Example  1: Hudson  and  Olivia  each  filed  their  2022 
Form OR-40-P       Line 47    Section E                       Oregon return using the single filing status. Hudson’s 
                                                              tax liability was $8,000 and he claimed a $500 credit 
Kicker worksheet                                              for income taxes paid to another state on Schedule OR-
Part A—Total personal income tax liability and kicker.        ASC. Olivia’s tax liability was $3,000, and she paid state 
                                                              income tax only to Oregon. Hudson and Olivia were 
1.   Tax before credits (see Table 9).   1.                   married in 2023 and are filing a joint Oregon return. 
                                                              They each complete Part A of the worksheet as follows: 
2.   Credit for income taxes paid to     2.                   Hudson’s worksheet: 
     another state using code 802 or 
     815 (see Table 9).                                       Part A: 
3.   Line 1 minus line 2. This is your  3.                    1.  Tax before credits    $ 8,000 
     total personal income tax liabil-                        2.  Credit for tax paid      – 500 
     ity for 2022.                                            3.  Total personal tax liability   $ 7,500 
4.   Line 3 times 0.4428. Round to       4.                   4.  Line 3 times 0.4428   $ 3,321 
     the nearest dollar. This is your 
     kicker.                                                  Olivia’s worksheet: 
Part B – Prorated kicker.                                     Part A: 
                                                              1.  Tax before credits    $ 3,000 
See Table 8. Complete lines 5 through 8 only if you filed     2.  Credit for tax paid          – 0
a joint return in 2022 and your 2023 filing status is non-    3.  Total personal tax liability   $ 3,000 
joint or joint but with a different spouse. Before you        4.  Line 3 times 0.4428   $ 1,328
start, determine your share of 2022 federal AGI.* 
                                                              They skip Part B because neither one filed a joint return 
5.   Federal AGI for 2022. Form          5.
                                                              for 2022. They complete Part C to find their combined 
     OR-40, line 7; Form OR-40-N or 
                                                              kicker:
     OR-40-P line 29F. 
6.   Your share of federal AGI for       6.                   9.  Hudson’s kicker from  
     2022.                                                     line 4 of his worksheet  $ 3,321 
7.   Line 6 divided by line 5. Round     7.                   10. Olivia’s kicker from  
     to two decimal places.                                    line 4 of her worksheet  $ 1,328  
                                                              11. Line 9 plus line 10   $ 4,649
8.   Line 4 times line 7. This is your   8.
     prorated kicker. 
                                                              Hudson and Olivia’s combined kicker is $4,649. 
Part C – Combined kicker.                                     Example 2: Ella and Emerson filed a joint 2022 Oregon 
Complete Part C only if you’re filing a joint return for      return. They were divorced in 2023 and are filing sepa-
2023 and you and your spouse didn’t file a joint return       rate returns. On their 2022 return, their tax before cred-
together for 2022.                                            its was $6,500, and they had a $300 credit for income tax 
                                                              they paid to another state. Their 2022 federal AGI was 
9.   Kicker amount from your             9.                   $90,000; Ella’s share was $40,000 and Emerson’s share 
     worksheet, line 4 (or line 8 if you                      was $50,000. Each completes Parts A and B of the work-
     completed Part B).                                       sheet to find their prorated kicker. 
10. Your spouse’s kicker from their      10.                  Ella’s worksheet: 
     worksheet, line 4 (or line 8, if 
     they completed Part B).                                  Part A: 
                                                              1.  Tax before credits    $ 6,500 
11. Line 9 plus line 10. This is your    11.
                                                              2.  Credit for tax paid      – 300 
     combined kicker.
                                                              3.  Total personal tax liability   $ 6,200 
*Consider each spouse’s individual income (such as            4.  Line 3 times 0.4428    $ 2,745
wages, pensions or self-employment) and adjustments.  

150-101-048-1 (Rev. 11-01-23)                              27  2023 Form OR-40-N and Form OR-40-P Instructions

- 28 -

Part B: Part B:
5. Federal AGI $ 90,000 5. Federal AGI $ 80,000
6. Ella’s share of AGI $ 40,000 6. Cortney’s share of AGI $ 48,000
7. Line 6 divided by line 5 0.44 7. Line 6 divided by line 5 0.60
8. Line 4 times line 7 $ 1,208 8. Line 4 times line 7 $ 1,993

Emerson’s worksheet:
Justin’s worksheet:
Part A:
Part A:
1. Tax before credits $ 6,500
1. Tax before credits $ 2,000
2. Credit for tax paid – 300
2. Credit for tax paid – 200
3. Total personal tax liability $ 6,200
3. Total personal tax liability $ 1,800
4 Line 3 times 0.4428 $ 2,745
4. Line 3 times 0.4428 $ 797
Part B:
5. Federal AGI $ 90,000 Justin skips Part B because he filed a non-joint return
6. Emerson’s share of AGI $ 50,000 for 2022. He and Cortney complete Part C:
7. Line 6 divided by line 5 0.56
9. Cortney’s kicker from
8. Line 4 times line 7 $ 1,537
line 8 of her worksheet $ 1,993
10. Justin’s kicker from
Ella’s prorated kicker is $1,208 and Emerson’s prorated line 4 of his worksheet $ 797
kicker is $1,537. 11. Line 9 plus line 10 $ 2,790
Example 3: Orlando and Cortney filed a joint Oregon Cortney and Justin’s combined kicker is $2,790. Orlan-
return in 2022. Their Oregon tax before credits was do’s kicker is $1,328.
$7,500, and they didn’t claim a credit for income taxes
Claim your kicker credit. If you’re claiming your kicker
paid to any other state. Their federal AGI was $80,000;
credit, enter the amount from line 4, line 8, or line 11 of
Cortney’s share was $48,000 and Orlando’s share was
the worksheet, as applicable, on Form OR-40-N, line 63,
$32,000. They were divorced in early 2023, and Cortney
or Form OR-40-P, line 62.
married Justin later that year. Justin had filed a non-
joint Oregon return for 2022. His Oregon tax before Donate your kicker. If you elect to donate your kicker
credits was $2,000 and he claimed a $200 credit for to the Oregon State School Fund, enter 0 on Form OR-
taxes paid to another state. Orlando didn’t remarry in 40-N, line 63 or Form OR-40-P, line 62 and see the
2023. Orlando, Cortney, and Justin figure their kickers instructions for Form OR-40-N, line 79 or Form OR-
as follows: 40-P, line 78. Reminder: This election is irrevocable
after the due date of the original return.
Orlando’s worksheet:
Note about offsets: If you claim the kicker credit and it
Part A:
reduces your 2023 tax liability to zero, any excess will
1. Tax before credits $ 7,500
be treated like a refund of overpaid tax. This means
2. Credit for tax paid – 0
that it may be offset (applied as a payment) against any
3. Total personal tax liability $ 7,500
tax or other liabilities you owe before the balance is
4. Line 3 times 0.4428 $ 3,321
refunded to you or applied (see Refund applications,
below). If you donate your kicker, it may be used first to
Part B:
offset tax or other liabilities you owe, with any remain-
5. Federal AGI $ 80,000
ing amount donated to the Oregon State School Fund.
6. Orlando’s share of AGI $ 32,000
If this happens, we’ll send you a notice to let you know.
7. Line 6 divided by line 5 0.40
8. Line 4 times line 7 $ 1,328
Form Form
Cortney’s worksheet: OR-40-N 64 OR-40-P 63

Total refundable credits from Schedule OR-ASC-NP.
Part A:
Enter your total refundable credits from Schedule OR-
1. Tax before credits $ 7,500
ASC-NP, line H7. Include Schedule OR-ASC-NP with
2. Credit for tax paid – 0
your return.
3. Total personal tax liability $ 7,500
4. Line 3 times 0.4428 $ 3,321

150-101-048-1 (Rev. 11-01-23) 28 2023 Form OR-40-N and Form OR-40-P Instructions

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— Becomes permanently unable to regularly per-
Penalties and interest form work at a gainful and suitable occupation
due to loss of any bodily function.
Form Form • The funds are withdrawn more than 10 years after
OR-40-N 68 OR-40-P 67 the account was opened.
This penalty is in addition to all other penalties pro-
Your 2023 tax must be paid by April 15, 2024, even if vided by law. Withdrawn funds that are subject to this
you requested an extension of time to file your return. penalty also must be added back to Oregon income. See
Your 2023 return must be filed by April 15, 2024. If you this topic in “Additions” in Publication OR-17.
requested an extension, your return must be filed by Interest on unpaid tax
October 15, 2024.
You’ll owe interest on the amount of tax that wasn’t paid
Round the total of penalties and interest to the near- by April 15, 2024. Interest starts accruing on April 16,
est whole dollar. For more information and examples 2024 and continues to accrue every day, including the
showing how penalties and interest are calculated, see date of your payment.
“Interest and penalties” in Publication OR-17.
Interest is figured daily, based on a 365-day year. The
Penalties annual interest rate for 2024 is 8 percent, or 0.0219 per-
Penalty amounts are based on the tax after all credits cent per day.
shown on your return. To find your tax after all cred- To figure your interest, count the number of days start-
its, start with your tax after standard and carryforward ing with April 16, 2024, and ending with the date of
credits (Form OR-40-N, line 56; Form OR-40-P, line 55), your payment. Multiply your unpaid tax by the num-
then subtract the refundable credit amounts (Form ber of days, then multiply that amount by 0.000219 (the
OR-40-N, lines 61 through 64; Form OR-40-P, lines 60 daily rate converted to a decimal).
through 63.
Interest rate increase. If we bill you for unpaid tax, and
• Failure-to-file penalty. Include a penalty for failure
the tax isn’t paid in full within 60 days from the date of
to file a return if:
our billing notice, the annual interest rate increases by
— Your return is filed more than three months after
4 percentage points, to 12 percent.
the due date (or extension due date); and
— You didn’t pay all of your tax by April 15, 2024. Amended return. If you’re amending your return, cal-
The penalty for failure to file is 20 percent of your tax culate the interest based on the additional amount of
after all credits that wasn’t paid by April 15, 2024. tax you must pay (line 5 of the Amended worksheet).

• Failure-to-pay penalty. Include a penalty for failure
Form Form
to pay if: 69 OR-40-P 68
OR-40-N
— Less than 90 percent of your tax after all credits
was paid by April 15, 2024, or Interest on underpayment of estimated tax. Under-
— You paid at least 90 percent of your tax after cred- payment interest is charged if:
its by April 15, 2024, but you aren’t paying the bal-
ance of unpaid tax in full when you file. • Your tax after all credits and withholding is $1,000 or
more;
The penalty for failure to pay is 5 percent of your tax • You were required to make estimated tax payments;
after all credits that wasn’t paid by April 15, 2024. • One or more of your required installments was
Failure to file and pay. If both penalties apply, your underpaid; and
total penalty will be 25 percent of your tax after all • You don’t qualify for an exception.
credits that wasn’t paid by April 15, 2024. Note: You could be charged interest on underpayment
First-time home buyer savings account (FTHBSA) of estimated tax even if Form OR-40-N, line 66 or Form
penalty for nonqualified withdrawal. Include a pen- OR-40-P, line 65 shows a refund.
alty of 5 percent of the funds withdrawn from your See Form OR-10 to determine if you owe underpayment
FTHBSA if you withdrew funds from your account for interest or qualify for an exception. Download the form
a purpose other than pur chasing a home. from our website or contact us to order it.
No penalty will be imposed if: If you owe underpayment interest, enter the amount
from line 4 of Form OR-10. If you qualify for an excep-
• The account holder: tion, enter the exception number from line 1 of the form
— Dies. inside box 69a on Form OR-40-N or box 68a on Form
— Files bankruptcy. OR-40-P. If you used the Annualized Income Work-
sheet (located in Form OR-10 Instructions) to figure

150-101-048-1 (Rev. 11-01-23) 29 2023 Form OR-40-N and Form OR-40-P Instructions

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your interest, check box 69b on Form OR-40-N or box             what the fee is during the transaction; you will have 
68b on Form OR-40-P. Include Form OR-10 with your               the option to continue or cancel the transaction before 
return. Keep your underpayment interest worksheets              entering your credit card information. If you complete 
and any required statements with your records.                  the credit card transaction, you will receive a confirma-
                                                                tion number. Keep this confirmation number as proof 
                                                                of payment—don’t send it with your return.
Amount due
                                                                To pay by credit card, go to    Revenue Online at  
Form                 Form                                         www.oregon.gov/dor.
OR-40-N 71        OR-40-P     70
                                                                Check or money order
Amount you owe. Enter your total unpaid tax plus pen-           • Make your check or money order payable to “Oregon 
alties and interest. Note: If you have an overpayment           Department of Revenue.”
on Form OR-40-N, line 66 or Form OR-40-P, line 65 and           • Write all of the following on your payment:
the overpayment is less than the total penalties and            — The tax year (2023).
interest you entered on Form OR-40-N, line 70 or Form           — The form you’re filing (Oregon Form OR-40-N or 
OR-40-P, line 69:                                               OR-40-P).
                                                                — The last four digits of your SSN or ITIN.
• On Form OR-40-N, enter the amount from line 70 
minus the amount on line 66.                                    • Use blue or black ballpoint ink. Don’t use red or pur-
• On Form OR-40-P, enter the amount from line 69                ple ink or gel pens. 
minus the amount on line 65.                                    • Don’t send cash or a postdated check. 
Amount to pay. If you’re filing your return on or before        Form OR-40-V.  Use  the  voucher only  if you’re  mak-
the  due  date  (without  extensions), pay  the  amount         ing a separate payment by check, cashier’s check, or 
shown on this line. If you’re filing your original return       money order. Don’t use the voucher if you’re including 
after the due date, subtract any payments you made              a payment with your return or making an electronic 
after the due date of the  return (without extensions)          payment. See Form OR-40-V Instructions for additional 
from the amount on this line before you make your               information.
payment. For amended returns, pay the amount shown              Payment plan. If you can’t pay in full now, pay what 
on the Amended Worksheet, line 11.                              you can. Contact us and we will help you set up a pay-
                                                                ment plan for the amount you’re unable to pay with 
Payment options                                                 your return.

You may pay electronically with your checking or sav-
                                                                Refund
ings  account,  credit  card,  check,  cashier’s  check,  or 
money order. Cash payments can be made only at our                                Form
                                                                Form
main office in Salem. If the amount due is less than $2,                   72  OR-40-P 71
                                                                OR-40-N
no payment is required.                                                        
                                                                Refund. Enter your overpayment minus any penalty 
Electronic payment from your checking or  
                                                                or interest (Form OR-40-N, line 66 minus line 70; Form 
savings account
                                                                OR-40-P, line 65 minus line 69). Note: If the total pen-
You can pay your current year income taxes, 2024 esti-          alty and interest is more than your overpayment, see 
mated income taxes, any prior year taxes due, and               the instructions for Form OR-40-N, line 71 or Form OR-
amended return taxes directly from your checking or             40-P, line 70.
savings account. There is no fee to use this service.
                                                                You have three years from the due date of the return 
This option is available only through our website. Go to        to file a claim for your refund. By law, we can’t issue 
   Revenue Online at  www.oregon.gov/dor.                       a refund if you file your return more than three years 
                                                                after the return’s due date (excluding extensions) or if 
Direct debit may be available with e-filed returns at the 
                                                                the refund is less than $1. For more information about 
time of filing.
                                                                the time limit for claiming a refund, see “Payments and 
Credit card payments                                            refunds” in Publication OR-17.
You can pay with your Discover, MasterCard, or Visa             Interest on refunds. See “Interest and penalties” in 
credit card. The service provider will charge you a             Publication OR-17 for information about interest paid 
convenience fee. The service provider will tell you             on refunds.

150-101-048-1 (Rev. 11-01-23)                                30 2023 Form OR-40-N and Form OR-40-P Instructions

- 31 -

Refund applications Instructions for amended returns. Enter the amount,
if any, from a refund on your original return that
If Form OR-40-N, line 72 or Form OR-40-P, line 71 shows
you applied as charitable donations using Schedule
a refund, you may use some or all of it to:
OR-DONATE. If line 5 of the Amended worksheet
• Make an estimated tax payment for a later year. shows a refund, you can donate some or all of it to one
• Donate to one or more of the charitable organizations or more of the listed charities. Include this amount
listed on Schedule OR-DONATE. and an amended Schedule OR-DONATE with your
• Make a deposit to an Oregon college or MFS 529 sav- amended return. Note: The refund from your amended
ings account. return will be applied as a donation for the calendar
Each of these applications will reduce your refund. The year in which you’re filing it.
combined total of all applications can’t be more than
the amount of your refund. Form Form
OR-40-N 75 OR-40-P 74
Note: A refund of overpaid tax will be offset against
outstanding debt before any amount is applied or Oregon college or MFS 529 savings plan. Enter the
refunded to you. amount from line 5 of Schedule OR-529. For minimum
deposit amounts and other information, see the sched-
Instructions for amended returns. If line 5 of the ule instructions. You can download Schedule OR-529
Amended worksheet shows a refund, you can use
from our website or contact us to order it.
some or all of it for the refund applications listed above.
However, you can’t reduce any amounts you’ve already Note: If the amount of your refund —after any appli-
applied from a refund on your original return. See the cation to an open estimated tax account or charitable
instructions for each application for details. checkoff donation—is less than the total amount you
want to deposit, no deposit will be made.
Form Form
OR-40-N 73 OR-40-P 72 Instructions for amended returns. Enter the amount,
if any, from a refund on your original return that you
Open estimated tax account. Enter the amount of your applied as an Oregon college or MFS 529 savings plan
refund you want to apply as a tax payment for a later deposit. If line 5 of the Amended worksheet shows a
year. This amount will be applied to your open esti- refund, add the amount you want to apply as a deposit
mated tax account (to a year where you will be filing and include an amended Schedule OR-529 with your
a tax return). Generally, the payment will be applied to amended return. The refund will be applied for the
the 2024 tax year, unless you’re filing a delinquent or year in which you’re filing the amended return.
amended return. For more information, see “Payments
and refunds” in Publication OR-17. Form Form
Instructions for amended returns. Enter the amount, if OR-40-N 77 OR-40-P 76

any, from a refund on your original return that you’ve
already applied as an estimated tax payment for a later Net refund. You must reduce your refund by any
year. If line 5 of the Amended worksheet shows a refund amounts applied to your open estimated tax account,
and you want to apply some or all of it as an estimated charitable checkoff donations, and Oregon college or
tax payment, include the amount you want to apply. MFS 529 savings plan accounts. By law, we can’t issue
or apply a refund if you file your return more than
Form Form three years after the return’s due date (excluding
OR-40-N 74 OR-40-P 73
extensions).
Charitable checkoff. Enter the amount from line 30 of
Schedule OR-DONATE. For more information, see the Direct deposit
schedule instructions. You can download Schedule
OR-DONATE from our website or you can contact us Form Form
to order it. OR-40-N 78 OR-40-P 77

Note: If your refund—after being applied to an open In most cases, we can deposit your refund directly into
estimated tax account—is less than your total donation your checking or savings account instead of mailing
amount, your donations will be prorated. you a check. However, federal banking regulations pre-
To make direct donations instead, you can find each vent us from making a refund by direct deposit if the
charity’s address listed on our website. Don’t mail your final destination is an account outside the United States.
donations to us. In that case, we must issue a paper check instead.

150-101-048-1 (Rev. 11-01-23) 31 2023 Form OR-40-N and Form OR-40-P Instructions

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Before you enter your information, verify that your 
deposit will be accepted and confirm your correct routing        Signature block
and account numbers. You can find a diagram of a per-
                                                                 Signature(s). Be sure to sign and date your return. If 
sonal check showing where these numbers are located in 
the “Payments and refunds” section of Publication OR-17.         you’re filing a joint return, both taxpayers must sign. By 
                                                                 signing the return, you acknowledge, under penalty of 
Follow these steps to make sure your refund will be              false swearing, that the information on the return and 
deposited into the correct account:                              any attachments is true, correct, and complete.
1. Check the box if the final destination for your refund        Minor child’s return. If your child can’t sign their tax 
   would be an account outside the United States.                return, you may sign the child’s name as their legal 
   Note: If you check this box, you will be issued a             agent. Sign the child’s name, then write “By [your signa-
   paper check.                                                  ture], parent (or other legal guardian) of minor child.”
2.  Check the appropriate box, either checking  orsav-
   ings, but not both.                                           Preparer  signature.   Anyone  who  prepares,  advises, 
                                                                 or assists in preparing personal income tax returns 
3. Enter your nine-digit routing number. Routing 
                                                                 in exchange for compensation of any kind      must be 
   numbers  begin  with  the  digits  01 through 12,  21 
                                                                 licensed to prepare Oregon returns and must    sign the 
   through 32, or 61 through 72.
                                                                 return. 
4. Enter your account number.   Account numbers can 
   be  up  to  17  characters  (both  numbers  and  letters).    Signing the return doesn’t grant your preparer the right 
   Don’t include hyphens, spaces, or special symbols.            to represent you or make decisions on your behalf. For 
5. Double-check  the account and routing numbers.                more information about representation and authoriza-
   These numbers can’t be changed after the return               tion, download Form OR-AUTH from our website or 
   is filed.                                                     contact us to order it.
   Form           Form                                           Contact the following agencies to check the status of 
OR-40-N   79     OR-40-P      78                                 your Oregon tax practitioner:
                 
                                                                 • State Board of Tax Practitioners at 503-378-4034 
You may choose to donate all of your kicker to the               (Salem) for licensed tax consultants or preparers, or 
Oregon State School Fund. The election to donate your            go to    www.oregon.gov/obtp.
kicker cannot be changed after the due date of the               • State Board of Accountancy at 503-378-4181 (Salem) 
original return. No partial donations are allowed. If            for public accountants and certified public accoun-
any amount other than 0 is entered on Form OR-40-N,              tants, or go to    www.oregon.gov/boa.
line 63 or Form OR-40-P, line 62, your donation won’t 
be made.                                                         Preparer license number. Licensed tax consultants and 
                                                                 tax preparers: enter your license number. CPAs: enter 
To make the donation:
                                                                 your certificate number. Tax-Aide volunteers: enter 
1.  See  the instructions for Form OR-40-N, line 63              your TCE site number. All others: leave blank. Don’t 
   or Form OR-40-P, line 62 to calculate your kicker             enter your driver license number.
   amount.
2. Make sure that you’ve entered 0 on Form OR-40-N, 
   line 63 or Form OR-40-P, line 62.                             Before you file
3.  Check box 79a on Form OR-40-N or box 78a on  
   Form OR-40-P.                                                 Copy of federal return. Before you assemble your Ore-
4. Enter your entire kicker amount on Form OR-40-N,              gon return, make a copy of both sides of your federal 
   line 79b or Form OR-40-P, line 78b.                           Form 1040, 1040-SR, or 1040-NR along with Schedules 1 
                                                                 through 3 (as applicable), or Form 1040-X. 
Reminder: This election is irrevocable. The election to 
donate your kicker can not be changed or revoked after           Don’t include any other federal schedules. Keep these 
the due date of the original return. To make a change or         with your records; we may ask for them later. 
correction to your election, your amended return must            If you created an “as if” federal return, use blue or black 
be received by the due date of the original return.
                                                                 ink to label it “as if” on the top left corner. Include it 
See the instructions for calculating your kicker for             along with the copy of your actual federal return (and 
more information.                                                any amendments).

150-101-048-1 (Rev. 11-01-23)                                 32 2023 Form OR-40-N and Form OR-40-P Instructions

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Failure to include your federal return will delay pro-
cessing, and items claimed on your Oregon return                Avoid processing delays
may be adjusted or denied.
                                                                Type or clearly print   your name, SSN, date of birth, 
Amended Oregon return. If you’re amending your                  complete mailing address, and daytime phone number 
Oregon return due to changes to your federal return or          on your return.
a return you filed with another state, include a copy of 
                                                                Include all pages of your Oregon return.
your amended or corrected federal or other state return 
or audit report. If you’re amending only your Oregon            Double-check  your  figures  and  other  numbers, 
return, include a copy of your original federal or other        including your SSN.     Errors will delay processing. 
state return.                                                   Common mistakes are:
Assemble your Oregon return. Assemble your return               • Math errors. 
in the order shown below. If a form has more than one           • A wrong amount claimed for the federal tax liability 
page, be sure that you’ve included all pages and that           subtraction. 
they’re  all  from  the  same  2023 form. For  example, if      • Using the wrong line or column on the tax tables.
you’re filing Schedule OR-WFHDC, Schedule OR-A,                 • Using the wrong tax chart. 
or Schedule OR-ASC-NP, be sure that “2023 Schedule              If you have tax to pay, review the instructions for Form 
OR-WFHDC”, “2023 Schedule OR-A” or “2023 Sched-                 OR-40-N, line 71 or Form OR-40-P, line 70.
ule OR-ASC-NP” is printed at the top of each page and 
that you’ve included all pages associated with each             Verify your account information if you’re requesting a 
schedule.                                                       refund by direct deposit.
Important: Don’t use staples, paperclips, tape, or              Sign your return. Both spouses must sign a joint return.
other fasteners. Doing so will delay processing.                Include legible copies of all W-2 and 1099 forms show-
1.  Payment by check or money order, if any. Don’t use          ing Oregon income tax withheld. Place them on top of 
a voucher.                                                      your return along with any payment by check, cashier’s 
2.  Form(s) W-2 and 1099 showing Oregon tax                     check, or money order.
withheld.                                                       Include a copy of your federal return (front and back) 
3.  Form OR-40-N or Form OR-40-P.                               with your Oregon return. Include federal Schedules 1 
4.  Schedule OR-A.                                              through 3 (if applicable), but don’t include other federal 
5.  Schedule OR-ASC-NP.                                         schedules unless otherwise instructed. Place it behind 
                                                                all Oregon forms and schedules.
6.  Schedule OR-ADD-DEP.
7.  Schedule OR-DONATE.                                         Payment by check, cashier’s check, or money order 
8.  Schedule OR-529.                                            should be placed on top of your return. Don’t mail cash. 
9.   Schedule OR-PTE-NR or OR-PTE-PY.                           Don’t use a voucher.
10.  Form OR-10.                                                Don’t use staples, paper clips, tape, or other fasteners.
11.   Schedule OR-EIC-ITIN.                                     Mail your return in a stamped envelope. Use a busi-
12.  Schedule OR-WFHDC.                                         ness-size (4 × 9½ inches) or larger envelope with ade-
13.  Other Oregon schedules required to be included             quate postage. Don’t use a smaller envelope—it delays 
with your return.                                               processing.
14.  If you’re an RDP filing separately for Oregon, your 
partner’s Oregon return. 
                                                                Tax return mailing addresses
15.  Your federal return(s) and schedules.
Note: If you’re making an estimated tax payment for             Mail refund returns or   Mail tax-to-pay  
2024 by check or money order, send the payment in a             no-tax-due returns to:   returns to:
separate envelope             with a completed Form OR-40-V.    REFUND                   Oregon Department of Revenue 
Don’t include your 2024 payment or voucher with your            PO Box 14700             PO Box 14555 
2023 return.                                                    Salem OR 97309-0930      Salem OR 97309-0940

150-101-048-1 (Rev. 11-01-23)                                33 2023 Form OR-40-N and Form OR-40-P Instructions

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