OR-21-MD: Schedule OR-21-MD Instructions, Oregon Pass-through Entity Elective Tax Member Directory (2024)
Oregon · Oregon DOR · Used for tax years 2024
The 2024 Schedule OR-21-MD instructions explain how Oregon pass-through entities report member information, each member’s share of distributive proceeds, the addition for tax deducted at the federal level, and the credit for PTE elective tax paid. They also include an information
Who files this form
Pass-through entities (PTEs) electing to pay Oregon’s PTE elective tax must include Schedule OR-21-MD with Form OR-21 when filing their return. The schedule provides information about all members and confirms that the entity qualifies for the election.
Only entities whose members are the following may make the election:
- Individuals subject to Oregon’s personal income tax laws.
- PTEs owned entirely by those individuals.
What you'll need
Have these forms and details ready:
- Completed Form OR-21. Complete it before preparing this schedule. You will use total distributive proceeds from line 22 and PTE-E tax from line 23.
- Form OR-65 or Form OR-20-S. These provide the information for each member’s share of distributive proceeds. For individual members, this information appears on Schedule OR-K-1, Part III, lines 1 through 11, in the Oregon column.
- The entity’s applicable federal return, such as Form 1065 or Form 1120-S, showing the deduction for state taxes paid.
- Member information: names, member types, SSNs for individuals or FEINs for PTEs, current addresses, daytime phone numbers, and ownership percentages. For a PTE member, also gather its legal name and a contact person’s name.
- Composite filing information: whether a nonresident individual member elects to be included in a composite filing for the tax year.
How to file
- Complete Form OR-21 before completing Schedule OR-21-MD.
- Complete the member information for every member. If the entity has more than two members, use additional copies of the schedule.
- Enter each member’s distributive proceeds, addition for tax deducted at the federal level, and PTE-E tax credit. Total these amounts in Part B.
- Check the totals against Form OR-21 and the applicable federal return. Correct any differences before filing.
- Include the completed schedule and all additional pages with Form OR-21.
The worksheet directs you to Revenue Online at www.oregon.gov/dor to complete your filing. The worksheet is for preparation only. Do not file the worksheet.
Common mistakes
- Filing the preparation worksheet. It is informational only and must not be filed. Include the completed schedule and any additional pages with Form OR-21 instead.
- Leaving totals unmatched. The instructions warn that the schedule is incomplete if totals do not match Form OR-21 or the applicable federal return. Make corrections before filing.
- Including penalties or interest in the credit. Column t must not include penalties, interest on unpaid tax, or interest on an underpayment of estimated tax.
- Entering a grantor trust’s own details. Select “Individual” and use the grantor’s name, SSN, and address. Do not enter the trust’s name, FEIN, or address.
- Using an assumed business name instead of a PTE member’s legal name. The legal name is required even if the member does business under an assumed name.
Questions people ask
What if the entity has more than two members?
Use additional copies of the schedule to list all members. Include all additional pages when filing Form OR-21.
Which ownership percentage should I report?
Enter each member’s ownership percentage as of the close of the tax year. If a member disposed of all or part of an ownership interest during the year, enter the percentage before the disposition.
How do I list a single-member LLC?
Select “Individual” and enter the member’s name, SSN, and address as you would for an individual. For other LLCs, indicate the organization type the LLC is treated as for tax purposes.
Does a member with zero distributive proceeds or a loss benefit from the election?
No. The instructions state that a member whose share of distributive proceeds is zero or a loss will not benefit from the PTE’s election to pay the PTE-E tax.
Where can I get help?
Visit www.oregon.gov/dor, call 503-378-4988 or 800-356-4222, or email questions.dor@dor.oregon.gov. You can also contact the department for ADA accommodations or assistance in other languages.