OR-FIA-40-P: Schedule OR-FIA-40-P, Oregon Farm Income Averaging for Part-year Residents (2024)
Oregon · Oregon DOR · Used for tax years 2024
Schedule OR-FIA-40-P calculates Oregon farm income averaging for part-year residents for 2024. It uses elected farm income and tax amounts for base years 2021, 2022, and 2023 to compare your tax with and without farm income averaging. Keep this schedule with your records rather t
Who files this form
Schedule OR-FIA-40-P is for Oregon part-year residents calculating their 2024 tax using farm income averaging (FIA).
The schedule compares tax with and without FIA. If FIA does not reduce your tax, the form directs you to complete your return without it. Do not include this schedule with your Oregon return. Keep it with your records.
What you'll need
Have these forms and details available:
- Your 2024 Form OR-40-P, including lines 18S, 34F, 34S, 35, 42, and 43.
- Federal Schedule J, line 2a, if using it for your elected farm income amount instead of Form OR-40-P, line 18S.
- The 2024 tax rate charts.
- Schedule OR-FIA-COMP computations for base years 2021, 2022, and 2023.
- Your Oregon returns for 2021, 2022, and 2023. The schedule uses tax amounts from Form OR-40, line 20; Form OR-40-N, line 46; or Form OR-40-P, line 45.
- Your name and Social Security number, and your spouse’s information if applicable.
How to file
Do not include Schedule OR-FIA-40-P with your Oregon return. Keep it with your records.
After completing the calculations, compare line 18, tax using FIA, with line 19, tax without FIA:
- If line 18 is less than line 19, enter line 18’s amount on schedule line 20 and on lines 44 and 45 of your return. Check box 44a.
- If line 18 is not less than line 19, complete your return without using FIA.
The schedule does not provide a mailing address or e-filing instructions.
Common mistakes
- Including the schedule with your return. The form says to keep it with your records instead.
- Using the usual base-year tax entries when you previously used FIA. If you used FIA to figure tax for any base year, the form directs you to consult the instructions for the amounts to enter on lines 14, 15, and 16.
- Using FIA when it does not reduce your tax. If line 18 is not less than line 19, complete your return without FIA.
- Entering an Oregon percentage above 100%. Line 4 limits the recomputed Oregon percentage to 100%.
Questions people ask
Which base years does the 2024 schedule use?
It uses 2021, 2022, and 2023. Lines 10 through 12 take the recomputed tax for those years from Schedule OR-FIA-COMP.
How do I calculate one-third of my elected farm income?
Divide the amount on line 2b by three and enter the result on line 9.
How do I know whether FIA reduces my tax?
Compare line 18 with line 19. FIA reduces your tax only if line 18 is less than line 19.
What if I used FIA in a base year?
The form directs you to consult the instructions for the amounts to enter on lines 14, 15, and 16. Those instructions are not included in the supplied text.