OREGON
separate property state

 

Military Income:   $6,000 exclusion for residents. (Check the military box on the member's military W-2)

Military Filing Requirement:  No, if no tax withheld a return does not have to be filed to maintain residency.

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state solely to be with service member. Service member and pouse must not be a residents of Oregon.

Forms Used:            

Filing Status:  Same as on the federal return.  If married and one spouse is not a resident of Oregon, separate returns may be filed.  If couple choose to file a joint return, they file as nonresidents.

Attach Copy of Federal Return:  Yes

Not Taxed: 

Other State Tax Credit:  No                                    

Where to Mail:
Refunds: Tax Due:
Oregon Dept of Revenue
P O Box 14700
Salem, OR  97309-0930
Oregon Dept of Revenue
P O Box 14555
Salem, OR  97309-0940
Refund Inquiry: (503) 378-4988 Website:  www.oregon.gov/DOR/
General Information(503) 378-4988 Electronic Filing(503) 378-4988
Other Info:  
Oregon Department of Revenue
955 Center St. NE Room 135
Salem, OR  97310-2551
 
E-filing Info:  EROs are required to retain signed Oregon Form EF for 3 years with all backup documents.
Tax Form Instructions:
Resident Instructions Non-Resident Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Oregon residents, lived at their present location all year, and one or both had income.

Main Info Screen.  Oregon military residents can be considered nonresidents for tax purposes if they meet all of the requirements listed in Military Income above.  Therefore a non-resident Oregon income tax return will be prepared. Check the box for not preparing a state return to make the red fields go away.

 

Oregon 40N Form.  A joint non-resident Oregon income tax return is prepared. 

As Oregon does not tax military income when stationed outside the state, the military members income is not taxable.  The only way to properly do this for Oregon is to Link on line 8 (Oregon Column), Wages, salaries, and other pay for work, and add a Scratch Pad.  u>DO NOT CHECK THE MILITARY BLOCK ON THE MILITARY MEMBER'S W-2 AS THIS WILL GIVE THEM ONLY A PARTIAL DEDUCTION OF MILITARY PAY. 

 

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a negative number.

Oregon OR NRPY Subs, Military Active Duty, Code 319. Enter the military wage income in the Federal Column only. You will have to link to a scratch pad to change the field. Leave the Oregon column blank.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a positive number.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Oregon, while the other member is a resident of a different state.  A Oregon income tax return must be prepared due to the taxpayer or spouse having Oregon earned income.

Main Info Screen.  If married and one spouse is not a resident of Oregon, separate returns may be filed.  If couple choose to file a joint return, they file as nonresidents.    For this example, the taxpayer is a resident of Oregon while the spouse is a resident of North Dakota. Check the box for not preparing a state return as necessary to make the red fields go away.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Oregon 40N Form.   A joint non-resident Oregon income tax return should be prepared. 

As Oregon does not tax military income when stationed outside the state, the military members income is not taxable.  The only way to properly do this for Oregon is to Link on line 8 (Oregon Column), Wages, salaries, and other pay for work, and add a Scratch Pad.  DO NOT CHECK THE MILITARY BLOCK ON THE MILITARY MEMBER'S W-2 AS THIS WILL GIVE THEM ONLY A PARTIAL DEDUCTION OF MILITARY PAY. 

 

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a negative number.

Oregon OR NRPY Subs, Military Active Duty, Code 319. Enter the military wage income in the Federal Column only. You will have to link to a scratch pad to change the field. Leave the Oregon column blank.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a positive number.

Review the remainder of the Oregon Form 40N to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Oregon tax return due to one or both having Oregon earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Oregon income tax return because the spouse worked in Oregon. Check the box for not preparing a state return as necessary to make the red fields go away.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

OR NRPY Subs, Military Active Duty, Code 319.   If married and one spouse is not a resident of Oregon, a married filing separate resident return may be filed.  If couple choose to file a joint return, they would file as nonresidents.  Prepare the return both ways to determine which one gives the largest refund.  For this example a joint non-resident Oregon income tax return should be prepared.

To comply with the Military Spouse Residency Relief Act, the nonresident spouse's income is not taxable.  The way to properly do this for Oregon is to Link on line 8 (Oregon Column), Wages, salaries, and other pay for work, and add a Scratch Pad. 

 

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a negative number.

To comply with the provisions in the Service Member's Civil Relief Act the military member's non-resident income must be taken off of the Oregon 40N form.  Enter the military wage income in the Federal Column only. You will have to link to a scratch pad to change the field. Leave the Oregon column blank.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a positive number.

Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Oregon during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Oregon.  The Spouse and taxpayer must file a Oregon tax return due to one or both of them having Oregon earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Oregon to North Dakota during the year.  The spouse was a resident of Oregon but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Oregon and North Dakota and must file a Oregon income tax return because the spouse worked in Oregon. Check the box for not preparing a state return as necessary to make the red fields go away.

 

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Oregon Form 40P.   A joint part-year resident Oregon income tax return should be prepared.  This form is used to subtract out all the other-states (Indiana and North Dakota) income. You must enter the Residency dates.

 

OR NRPY Subs, Military Active Duty, Code 319.  To comply with the provisions in the Service Member's Civil Relief Act the military member's non-resident income must be taken off of the Oregon 40N form.  Enter the military wage income in the Federal Column only. You will have to link to a scratch pad to change the field. Leave the Oregon column blank.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a positive number.

Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Oregon with Income from Another State  - Taxpayer is single.  The taxpayer must file a Oregon tax return due to him or her having Oregon earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Oregon.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.  As Oregon does not tax military income when stationed outside the state, the military members income is not taxable.  Therefore a non-resident Oregon income tax return will be prepared.  Check the box for not preparing a state return as necessary to make the red fields go away.

 

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Oregon 40N Form.  A non-resident Oregon income tax return is prepared.  As Oregon does not tax military income when stationed outside the state, the military members income is not taxable.  The only way to properly do this for Oregon is to press F9/Link on line 8 (Oregon Column), Wages, salaries, tips, etc., and add a Scratch Pad.

 Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a negative number.

OR NRPY Subs, Military Active Duty, Code 319.  To comply with the provisions in the Service Member's Civil Relief Act the military member's non-resident income must be taken off of the Oregon 40N form.  Enter the military wage income in the Federal Column only. You will have to link to a scratch pad to change the field. Leave the Oregon column blank.

Scratch Pad - Detail Sheet.  In the Type field enter a description of the income.  In the Amount column enter the income as a positive number.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Oregon return must be filed because the taxpayer received new tax information after their Oregon return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Oregon 40N - Oregon Nonresident Income Tax.  To amend a Oregon Nonresident return use the original 40N that was filed, check the Amended Return box on the top of the return and make the changes that are required.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.