OR-DRD: Form OR-DRD, Oregon Dividends-Received Deduction (2024)
Oregon · Oregon DOR · Used for tax years 2024
Form OR-DRD calculates a corporation’s Oregon dividends-received deduction by type of dividend or income and the applicable deduction percentage. The total is reported on Schedule OR-ASC-CORP using subtraction code 370, and the form must be included with the Oregon corporation ta
Who files this form
Form OR-DRD is used to calculate a corporation’s Oregon dividends-received deduction. Deductions are allowed only for dividends included in federal taxable income.
You must include this form with your Oregon corporation tax return.
What you'll need
Have the following information ready:
- Your corporation’s legal name, as shown on your Oregon return, and federal employer identification number (FEIN).
- Dividend and income amounts for the categories listed on the form, including the ownership percentages needed to choose the correct lines.
- The federal deduction amount for dividends on debt-financed stock, if applicable.
For Subpart F income reported on lines 14a or 15a, include Form(s) 5471 if applicable.
How to file
- Enter your corporation’s legal name and FEIN.
- Enter the applicable dividend or income amounts on the “a” lines and calculate the deductions on the matching “b” lines using the printed percentages or rule.
- Add lines 1b through 17b and enter the total on line 18.
- Enter the line 18 total on Schedule OR-ASC-CORP using subtraction code #370.
- Include Form OR-DRD with your Oregon corporation tax return.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Claiming a deduction for dividends not included in federal taxable income. The form allows deductions only for dividends included in that income.
- Leaving Form OR-DRD out of your Oregon corporation tax return. The form must be included.
- Ignoring the printing and preparation reminders: use UPPERCASE letters and blue or black ink, print at actual size (100%), and do not submit photocopies or use staples.
Questions people ask
What deduction percentages apply to dividends from domestic corporations on lines 1 and 2?
Line 1b allows 70% of dividends from less-than-20%-owned domestic corporations. Line 2b allows 80% of dividends from 20%-or-more-owned domestic corporations.
How are dividends on debt-financed stock handled?
Report dividends on debt-financed stock of domestic and foreign corporations on line 3a. The Oregon deduction on line 3b is the same as the federal deduction.
Do I need to include Form 5471 for Subpart F income?
Lines 14a and 15a direct you to include Form(s) 5471 if applicable.
Where does the total deduction go?
Add all “b” lines, 1b through 17b, and enter the total on line 18. Then enter that total on Schedule OR-ASC-CORP using subtraction code #370.