Determining which form to use
Your residency status determines the Oregon tax return form you file.
Full-year residents
File Form OR-40 if you (and your spouse, if married and filing a joint return) are a full-year resident. You're a full-year resident if all of the following are true:
- You think of Oregon as your permanent home.
- Oregon is the center of your financial, social, and family life.
- Oregon is the place you plan on coming back to when you're away.
You're also considered to be an Oregon resident if you maintain an Oregon residence and spend more than 200 days in the state during the tax year.
You're still a full-year resident if you temporarily move out of Oregon, and then move back.
Part-year residents
You're a part-year resident if you stop being a resident of another state and become a resident of Oregon, or if you stop being an Oregon resident and become a resident of another state, during the tax year. You're also treated as a part-year resident if you qualify as an Oregon resident living in a foreign country* for part of the year. Use Form OR-40-P if any of the following are true:
- You're a part-year resident who isn't filing a joint return.
- You're married and filing a joint return, and you and your spouse are part-year Oregon residents, or one spouse is a full-year Oregon resident and the other is a part-year resident.
- You (or your spouse, if married) are an Oregon resident who qualified as a resident living in a foreign country* for part of the year.
Nonresidents
Use Form OR-40-N to report your income from Oregon sources if any of these are true:
- You are a resident of another state, you don't maintain a home in Oregon (or if you do maintain a home in Oregon, you didn't spend more than 200 days in Oregon during the tax year), and you had income from an Oregon source.
- You're a special-case Oregon resident.**
- You're married and filing a joint return and you or your spouse are a nonresident.
- You or your spouse meet the military personnel nonresident requirements.
- You qualified as an Oregon resident living in a foreign country** for the entire year.
*Oregon resident living in a foreign country: You're treated as a foreign nonresident if you meet the residency requirements for the federal foreign earned income or housing exclusions, or if you are in the civil service or military serving in a foreign country. To qualify for a federal exclusion, you must meet either the "physical presence" test or "bona fide residence" test. For more information, see Publication OR-17.
**Special-case Oregon residents: You're treated as a nonresident for tax purposes if you're an Oregon resident and all the following are true for you:
- You maintained a permanent home outside Oregon the entire year;
- You didn't keep a home in Oregon during any part of the year; and
- You spent less than 31 days in Oregon during the year.
Do you work for an Oregon Employer?
If you don't live in Oregon, you only have to pay tax on the wages from your job for work you do inside Oregon. Oregon won't tax your wages for work you do at home or some other place outside Oregon. Oregon may tax some of your sick pay, vacation pay, or other benefits based on how much time you spend doing your work in Oregon.
If your pay for work you did in Oregon doesn't match the Oregon wages on your Form W-2, see the instructions for Form OR-40-N, line 7. Ask your employer to give you a signed letter that shows why the wages on your return are not the same. Keep the letter with your tax records.
To learn more about how Oregon taxes your wages or other income, see "Income" in Publication OR-17.
Are you a nonresident owner of a pass-through entity?
If you have Oregon-source income from a pass-through entity (PTE), you may elect to join in a composite return filed by the entity. Oregon's composite return, Form OR-OC, is for nonresidents whose only Oregon-source income is from a PTE. If you elect to join in, you won't need to file your own return to report and pay tax on this income. The PTE is required by law to file Form OR-OC if you make this election. The PTE will also make tax payments for you and all other electing nonresident owners.
If you have other Oregon-source income, you may still elect to join in the composite return. However, you will also need to file Form OR-40-N to report and pay tax on your other income. Report all of your income on Form OR-40-N and claim a subtraction for the income reported on the composite return.
For more information, see Publication OR-OC or "Subtractions" in Publication OR-17.