OR-FIA-40-P: Schedule OR-FIA-40-P, Oregon Farm Income Averaging for Part-year Residents (2025)
Oregon · Oregon DOR · Used for tax years 2025
Schedule OR-FIA-40-P calculates Oregon farm income averaging for part-year residents for 2025 using elected farm income and tax amounts for the 2022, 2023, and 2024 base years. It compares tax with and without farm income averaging to determine whether averaging reduces your tax.
Who files this form
The 2025 Schedule OR-FIA-40-P is for part-year Oregon residents calculating their tax using farm income averaging (FIA).
The schedule compares tax with and without FIA. If FIA does not reduce your tax, complete your return without using it. Do not include this schedule with your Oregon return. Keep it with your records.
What you'll need
Have these forms and figures available:
- Your 2025 Form OR-40-P, including the income, deduction, taxable income, and Oregon percentage amounts referenced on the schedule.
- Federal Schedule J, line 2a, or Form OR-40-P, line 18S, for elected farm income from Oregon sources.
- Schedule OR-FIA-COMP computations for base years 2022, 2023, and 2024.
- Your Oregon returns for 2022, 2023, and 2024: Form OR-40, OR-40-N, or OR-40-P.
- The 2025 tax rate charts.
- 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.
If line 18, tax using FIA, is less than line 19, tax without FIA, enter the line 18 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.
Common mistakes
- Do not include the schedule with your Oregon return. Keep it with your records.
- Do not enter a recomputed Oregon percentage greater than 100% on line 4.
- If you used FIA for any base year, follow the schedule’s reminder to see the instructions for the amounts to enter on lines 14, 15, and 16. Those instructions are not included in the supplied text.
- Do not use FIA if line 18 is not less than line 19. The schedule says to complete your return without FIA in that case.
- If line 18 is less than line 19, remember to check box 44a on your return.
Questions people ask
Which base years does the 2025 schedule use?
It uses 2022, 2023, and 2024. Lines 10 through 12 take the recomputed tax amounts from Schedule OR-FIA-COMP for those years.
How do I calculate one-third of my elected farm income?
Divide 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 schedule directs you to see the instructions for the amounts to enter on lines 14, 15, and 16 instead of simply entering the listed tax amounts from your base-year returns. Those instructions are not included in the supplied text.