OR-FIA-40: Schedule OR-FIA-40, Oregon Farm Income Averaging for Full-year Residents (2025)
Oregon · Oregon DOR · Used for tax years 2025
Schedule OR-FIA-40 is Oregon’s farm income averaging schedule for full-year residents. It calculates 2025 tax using elected farm income and the 2022, 2023, and 2024 base years, then compares that amount with tax without farm income averaging. Keep this schedule with your records
Who files this form
Schedule OR-FIA-40 is for Oregon full-year residents figuring their 2025 tax using farm income averaging (FIA).
Do not include this schedule with your Oregon return. Keep it with your records.
What you'll need
Have these forms and information available:
- Your 2025 Form OR-40, including taxable income on line 19.
- Your 2025 elected farm income amount.
- Your 2022, 2023, and 2024 Oregon returns for the base-year income and tax amounts.
- Oregon tax tables or rate charts for 2022, 2023, 2024, and 2025.
- Schedule OR-FIA-COMP, if applicable, for recomputed base-year tax.
- Your name and Social Security number, plus your spouse’s information if applicable.
The form refers you to instructions for certain situations, including prior use of FIA, a nonresident or part-year resident base-year return, or base-year taxable income of $0 or less. Those instructions were not provided here.
How to file
Do not send Schedule OR-FIA-40 with your Oregon return. Keep it with your records.
If the tax using FIA on line 22 is less than the tax without FIA on line 23, enter the line 22 amount on schedule line 24 and Form OR-40, line 20. Check box 20a on Form OR-40.
If line 22 is not less than line 23, complete your return without using FIA. The schedule does not provide mailing or e-filing directions.
Common mistakes
- Do not enter elected farm income on line 2 that exceeds your 2025 taxable income on line 1.
- Do not use the ordinary base-year entries without checking the instructions if you used FIA for any base year or filed a nonresident or part-year resident return for any base year.
- If a base year’s taxable income is $0 or less, see the instructions before completing line 5, 9, or 13.
- If you used FIA for any base year, see the instructions for the tax amounts to enter on lines 18–20.
- Use FIA only if line 22 is less than line 23. Otherwise, the form says FIA does not reduce your Oregon tax.
- Do not include the schedule with your Oregon return.
Questions people ask
Which base years does the 2025 schedule use?
It uses 2022, 2023, and 2024.
How is elected farm income divided among the base years?
Line 6 divides your elected farm income from line 2 by three. That same amount is used on lines 10 and 14 for the other two base years.
How do I know whether FIA reduces my Oregon tax?
Compare line 22, tax using FIA, with line 23, tax without FIA. FIA reduces your tax only if line 22 is less than line 23.
What if I used FIA in a base year?
The form directs you to the instructions for the base-year income section and for the amounts to enter on lines 18–20. Those instructions were not provided here.
Do I attach this schedule to my return?
No. Keep the schedule with your records.