Determining which form to use
Your residency status determines the Oregon tax return form you file.
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.
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.
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.
Note for non-residents who telecommute: Oregon taxes the income you earned while working in Oregon. Generally, Oregon doesn’t tax any amount you earned while you were performing services outside Oregon. Nonresident telecommuters who work for an Oregon employer are taxed on the income earned from services performed in Oregon, including a portion sick pay or other benefits.
If the amount you earned working in Oregon differs from the Oregon wages shown on your Form W-2, compute your Oregon-source income using the formula at the end of this section. You should ask your employer to provide you with a signed explanation of the wage difference, written on company letterhead. Keep the explanation with your tax records, as we may ask for it at a later date.
If you have more questions consult page 53 of Publication OR-17 and see page 47 for information on Oregon-source incomes.