OR-FIA-40-N: Schedule OR-FIA-40-N, Oregon Farm Income Averaging for Nonresidents (2024)
Oregon · Oregon DOR · Used for tax years 2024
Schedule OR-FIA-40-N calculates Oregon tax using farm income averaging for nonresidents for 2024. It uses elected farm income and tax calculations for base years 2021, 2022, and 2023 to compare your tax with and without farm income averaging.
Who files this form
Schedule OR-FIA-40-N is for nonresidents figuring their 2024 Oregon tax using farm income averaging (FIA). It compares tax with and without FIA to see whether FIA reduces the tax.
Do not include this schedule with your Oregon return. Keep it with your records.
What you'll need
Have these forms and information available to complete the schedule:
- Your 2024 Form OR-40-N, including the income, subtraction, Oregon percentage, and taxable income amounts referenced on the schedule.
- Your 2024 elected farm income from Oregon sources, from federal Schedule J, line 2a, or Form OR-40-N, line 18S.
- Schedule OR-FIA-COMP computations for base years 2021, 2022, and 2023.
- Your Oregon returns for 2021, 2022, and 2023. The schedule references Form OR-40, line 20; Form OR-40-N, line 46; or Form OR-40-P, line 45, for each year.
- The 2024 tax rate charts.
- Your name and Social Security number, and your spouse’s information if applicable.
If you used FIA for any base year, the form directs you to the instructions for the amounts to enter on lines 15 through 17. Those instructions are not included in the supplied text.
How to file
Do not include Schedule OR-FIA-40-N with your Oregon return. Keep it with your records.
If line 19 is less than line 20, enter the line 19 amount on schedule line 21 and on line 46 of your 2024 return. Check box 46a on your return.
If line 19 is not less than line 20, complete your return without using FIA. The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Including the schedule with your return. The form says to keep it with your records instead.
- Overlooking prior use of FIA. If you used FIA for any base year, the form directs you to the instructions for the amounts to enter on lines 15, 16, and 17, rather than simply using the listed return amounts.
- Using FIA when it does not reduce your tax. If line 19 is not less than line 20, the form says to complete your return without FIA.
- Forgetting box 46a. If line 19 is less than line 20, the form directs you to check box 46a when entering the FIA tax on your return.
Questions people ask
Which base years does the 2024 schedule use?
It uses 2021, 2022, and 2023. Lines 11 through 13 take the recomputed tax for those years from Schedule OR-FIA-COMP.
How much elected farm income goes on line 10?
Divide the 2024 elected farm income on line 2b by three and enter the result on line 10.
How do I know whether FIA reduces my tax?
Compare line 19, tax using FIA, with line 20, tax without FIA. If line 19 is lower, use that amount on schedule line 21 and return line 46, and check box 46a. Otherwise, complete your return without FIA.
Do I send this schedule with my Oregon return?
No. The form says not to include it with your Oregon return and to keep it with your records.