How to File Your Oregon Tax Return for 2023

Filing your Oregon tax return for 2023 doesn’t have to be overwhelming, even if it’s your first time. Whether you’re an individual taxpayer or a small business owner, understanding the state’s tax filing process will help you avoid costly errors, meet deadlines, and stay compliant with Oregon Department of Revenue requirements.

This guide breaks down everything you need to know, from which Oregon tax forms to use to how and when to file. You'll also learn how to prepare your return, pay what you owe, track your refund, and access support if you cannot file on time. Knowing how to complete and submit your return correctly is key if you're looking to get your maximum refund or reduce what you owe.

We’ve structured this step-by-step guide with practical tips and plain-language explanations to help you confidently file. Whether you plan to file online through a software program, work with a tax preparer, or print and mail your return, this resource covers every part of the process—so you can move forward without the hassle.

Do You Need to File an Oregon Tax Return?

Most Oregon residents and part-year residents must file a state tax return if their income exceeds a certain threshold. Your filing requirement depends on your filing status, gross income for the tax year, and whether you must file a federal return. If you had Oregon income tax withheld or are eligible for refundable credits, you may also need to file, even if your income is below the standard threshold.

You must file an Oregon tax return if any of the following apply:

You are required to file a federal return for the tax year.
Your gross income exceeds the state filing threshold for your status.
You had Oregon income tax withheld and want to claim a refund.
You qualify for a refundable credit, such as the Oregon Earned Income Credit or the Oregon Kids Credit.
You received income from Oregon sources as a nonresident or part-year resident.

2023 Oregon filing thresholds by status:

Single: $13,850
Married filing jointly: $27,700
Married filing separately: $13,850
Head of household: $20,800
Qualifying surviving spouse: $27,700

These thresholds apply to gross income, which includes all income before deductions. If your income is near the limit or you’re unsure about eligibility, filing a return may help you access refunds or credits you would otherwise lose.

In addition, some taxpayers must file to reconcile estimated payments, apply for the kicker refund, or report income from previous tax years. Filing even when it’s not strictly required can simplify your tax records and help avoid issues with future filings.

What’s New for 2023 Oregon Tax Filers?

The 2023 tax year brings several changes that may affect how you prepare and file your Oregon tax return. These updates involve new credits, deductions, and reporting requirements from the Oregon Department of Revenue. Understanding these changes can help you avoid errors and claim the full benefits.

Key changes for the 2023 tax year include:

The Oregon Kids Credit is a new refundable credit of up to $1,000 per qualifying child aged five or younger. If you qualify, this can increase your refund or reduce your debt.
Paid Leave Oregon began paying benefits in September 2023. If you received payments under this program, you may need to report them depending on how they are handled on your federal return.
A new National Guard subtraction allows members serving on active duty, under orders authorized by the Oregon Governor, to subtract qualifying military income from Oregon taxable income.
You may qualify for a casualty loss subtraction if you suffered property damage due to a state-declared emergency in Oregon and that loss wasn’t covered by federal relief.
Taxpayers who received refunds from a pass-through entity's elective tax and reported it as income on their federal return can subtract that amount on their Oregon return.
The Forest Conservation Credit is available to certain small forestland owners who designate part of their land for conservation purposes.
The Agricultural Employer Overtime Credit provides a refundable credit for agricultural businesses that paid overtime wages during the tax year.
Finally, Oregon’s kicker credit for 2023 equals 44.28% of your 2022 Oregon tax liability. You must claim this on your return to receive the benefit.

Which Oregon Tax Forms Should You Use?

Choosing the correct tax form is one of the most critical steps in preparing your Oregon tax return. The proper form depends on whether you lived in Oregon all year, part of the year, or elsewhere but earned income in the state. Additional forms and schedules may also be required, depending on your deductions, credits, or filing situation.

Primary Oregon tax forms:

Form OR-40 should be used if you were a full-year resident of Oregon in 2023.
Form OR-40-N is intended for nonresidents who earned income from Oregon sources, such as wages or rental income.
Form OR-40-P applies if you lived in Oregon for part of the year and moved into or out of the state during 2023.

Additional schedules and forms are often required:

Schedule OR-ASC is used by full-year residents claiming specific additions, subtractions, or tax credits on their return.
Schedule OR-ASC-NP is required for nonresidents and part-year residents with Oregon-specific tax adjustments.
Schedule OR-A is used if you plan to itemize deductions rather than take the standard deduction on your Oregon return.
Form OR-10 is needed if you underpaid estimated taxes during the year and may be subject to a penalty.
Form OR-40-V must be included if you pay your balance by check or money order.
Schedule OR-WFHDC allows you to claim the Working Family Household and Dependent Care Credit if you qualify.

In addition to state forms, you must include a copy of your federal return (Form 1040 or 1040-SR) and Schedules 1 through 3 if applicable. This is essential because the Oregon Department of Revenue uses your federal return to verify your income and deductions. Missing or incorrect documents can result in delays or adjustments to your return.

Step-by-Step Instructions to Complete Your Oregon Tax Return

Preparing your Oregon tax return can feel complex, especially if you're filing independently for the first time. However, following a transparent process can reduce stress and improve your chances of filing an accurate return. Whether you are using tax software, working with a tax preparer, or filling out forms manually, the steps below outline the key parts of the process.

1. Gather your tax documents

Collect all necessary documents before you start, including your federal tax return (Form 1040 or 1040-SR), W-2s, and any 1099s that report income. You should also gather records of estimated tax payments, documents supporting deductions or credits, and a copy of your previous Oregon tax return if available.

2. Select the correct Oregon tax form

Determine your residency status to identify the proper form. Use Form OR-40 if you were a full-year Oregon resident. If you lived in Oregon for part of the year, use Form OR-40-P. If you lived outside Oregon but earned Oregon income, use Form OR-40-N.

3. Enter your personal information

Carefully fill out your full name, Social Security Number (or ITIN), and mailing address. Indicate your filing status, and check any boxes for age 65 or older or blindness, as these may affect your standard deduction.

4. Report all income

Transfer income figures from your federal return to your Oregon form. Full-year residents should report income directly. Nonresidents and part-year residents must split their income between federal (Column F) and Oregon (Column S) amounts, based on where the income was earned.

5. Enter Oregon-specific additions and subtractions

Use Schedule OR-ASC (or OR-ASC-NP) to report Oregon additions and subtractions. These include federal tax liability subtraction, eligible military pay, refunds of Oregon income tax claimed in a prior year, and qualified casualty losses.

6. Calculate your Oregon taxable income

Follow the instructions in the tax form booklet to determine your taxable income. Use the tax tables or rates provided to calculate how much Oregon income tax you owe.

7. Apply any tax credits

Enter all eligible tax credits to reduce the amount you owe. These may include the Oregon earned income credit, the Oregon Kids Credit, the Working Family Household and Dependent Care Credit, and the kicker credit. You may qualify for a credit if you paid income taxes to another state.

8. Compare your tax due with payments and credits

Determine if you will receive a refund or if you still owe taxes. You will receive a refund if your total payments and credits exceed your calculated tax. If your tax exceeds your payments, the difference is your balance due.

9. Review, sign, and file your return

Go over your return carefully to check for errors. Make sure all required schedules are attached. Sign and date the return before filing. If you are filing jointly, both spouses must sign. Returns are often delayed by omitting a signature or failing to include attachments.

How to File Your Oregon Tax Return

Oregon offers several ways to file your state income tax return, whether you prefer the convenience of e-filing or need to mail a paper return. Choosing the correct filing method depends on your comfort level, access to technology, and whether you’re using tax software, a tax preparer, or preparing your taxes by hand.

E-filing options available to Oregon taxpayers:

Direct File Oregon is a free online program available to most full-year residents. This option allows you to file directly with the Oregon Department of Revenue and is now linked to IRS Direct File for smoother submission.
The Free File Alliance offers free electronic filing through approved software companies if your adjusted gross income is $73,000 or less.
Many tax software companies provide e-filing options for a fee. These platforms often include helpful tools, calculators, and access to tax experts.
You may work with a tax preparer authorized to e-file your Oregon tax return for you. This option may come at a cost, but it offers professional guidance and can help you avoid errors.

E-filing is the fastest and most secure option. It typically results in quicker processing and refunds, with most direct deposit refunds arriving within two weeks.

Paper filing instructions:

If you file a paper return, print your completed Oregon tax forms using black or blue ink and write clearly in all capital letters. Be sure to sign and date the return, include all required schedules, and attach a copy of your federal return.

Mailing addresses for paper returns:

If you expect a refund or are not making a payment, mail your return to:
Oregon Department of Revenue
PO Box 14700
Salem, OR 97309-0930
If you are submitting a payment with your return, mail it to:
Oregon Department of Revenue
PO Box 14555
Salem, OR 97309-0940

Note that paper returns take longer to process—up to 20 weeks in some cases—so e-filing is generally the recommended method for faster results.

How to Make a Payment to the Oregon Department of Revenue

The state offers several ways to submit payment if you owe money on your Oregon tax return. Making your payment on time is essential to avoid penalties and interest. Depending on your preference and financial situation, you can choose between online, phone, or mail-in payment options.

Payment methods for Oregon taxpayers:

Revenue Online is the fastest and most secure way to pay your taxes. You can log in to your account and pay directly from your bank account at no cost.
You can also pay using a credit or debit card, though a service provider fee will apply. This option is available through Revenue Online and offers confirmation of payment.
Individuals and businesses may use Electronic Funds Transfer (EFT) to submit funds for larger payments.
To pay by phone, call 503-945-8200 and follow the instructions to use the Electronic Funds Transfer (EFT) automated system to pay using your bank or card information.

Mailing a check or money order:

If you are paying by check or money order, make it payable to "Oregon Department of Revenue" and include your Social Security Number (or ITIN), the tax year, and the form type (such as "Form OR-40") on the memo line. Also include your Form OR-40-V payment voucher and mail everything to:

Oregon Department of Revenue
PO Box 14555
Salem, OR 97309-0940

To avoid penalties, your payment must be postmarked by April 15, 2024. A late fee will result in a 5% penalty, and filing more than three months late triggers a 20% penalty. Interest accrues on any unpaid balance from the original due date, even if you set up a payment plan.

Payment plan options:

If you are unable to pay the full amount owed by the deadline:

File your return on time to avoid the late-filing penalty.
Pay as much as you can to reduce penalties and interest.
Set up a payment plan through Revenue Online. You may qualify for a monthly installment plan of up to 36 months.
If you cannot access the online system, call 503-945-8200 to request assistance with payment arrangements.

Even if you are approved for a payment plan, interest will continue to accrue until the balance is paid in full.

Tracking Your Oregon Tax Refund or Balance Due

Once you've filed your Oregon tax return, you can track the status of your refund or monitor any remaining balance using several tools provided by the Oregon Department of Revenue. You must wait at least two weeks after filing electronically before checking your refund status.

Ways to check your Oregon tax refund status:

The Oregon Department of Revenue's 'Where’s My Refund?' tool lets you check your refund status with your SSN or ITIN, filing status, and refund amount from your return.
You can log in for more detailed information about your return and any applicable payments or credits if you have a Revenue Online account.
Call the Department of Revenue at 503-378-4988 or 800-356-4222 to inquire about your refund. Phone lines are busiest from February to June.

Typical refund processing times:

E-filed returns are generally processed within two weeks if there are no errors or missing information. Refunds issued via direct deposit tend to arrive faster than paper checks.
Paper-filed returns can take up to 20 weeks to process. Returns requiring manual review due to errors, identity verification, or missing forms may also face similar delays.

When to contact the Oregon Department of Revenue:

You have not received your refund after more than 20 weeks.
Your return was rejected or flagged for review.
The refund tool instructs you to contact the agency.
You cannot access your online account, or you need assistance updating your address or bank information.

If your refund is delayed due to processing issues, Oregon begins paying interest on refunds 45 days after the April 15 deadline or 45 days after you file, whichever is later. Interest is not paid on reissued checks or late-filed returns without an approved extension.

Oregon Tax Filing for Small Businesses and Sole Proprietors

Your Oregon tax return depends on your business structure—small business or self-employment. Partnerships and corporations must file state forms, but sole proprietors and single-member LLCs file as individuals. Correctly filing keeps you compliant and avoids costly penalties.

Filing requirements based on business type:

Sole proprietors must report their business income on their personal Oregon tax return using Form OR-40, OR-40-N, or OR-40-P, along with a copy of federal Schedule C.
Single-member LLCs taxed as disregarded entities follow the same process as sole proprietors, reporting business income on their return.
Multi-member LLCs treated as partnerships must file Form OR-65 for the business, and each member must file a personal return to report their share of the income.
LLCs or corporations taxed as C corporations must file Form OR-20, Oregon’s corporate excise tax return.
S corporations file Form OR-20-S. Each shareholder must also report a portion of their income on their Oregon return.

Key considerations for small business owners:

Small business owners in Oregon must include a complete copy of their federal return with schedules, such as Schedule C, when filing. You may qualify for a reduced tax rate on pass-through income using the correct form based on your residency. Estimated tax payments are required if you expect to owe $1,000 or more. Employers must withhold personal income tax and may owe transit taxes. Businesses with over $1 million in Oregon commercial activity must register for the Corporate Activity Tax.

Common filing mistakes for business owners:

Mixing business and personal expenses without proper documentation.
Failing to file or pay estimated taxes on time.
You overlook Oregon business tax credits, such as the Agricultural Employer Overtime Credit or the Research and Development Expenses Credit.
Not reporting all business income from clients, contractors, or platforms.
Ignoring city or county tax requirements, especially in Portland or Multnomah County areas.

Final Filing Checklist

Before submitting your Oregon tax return, take a few minutes to double-check that everything is complete, accurate, and ready for submission. A small oversight can lead to processing delays, refund issues, or unexpected correspondence from the Oregon Department of Revenue.

Before you file:

Confirm you’ve collected all required tax documents, including W-2s, 1099s, your federal return, and documentation for any credits or deductions you plan to claim.
Select the correct Oregon tax form based on your residency status and income sources.
Review your return for math errors, incorrect Social Security Numbers, or missing entries that could cause your return to be flagged.
Verify your direct deposit information to ensure your refund reaches your bank account without delays.
Check your eligibility for credits such as the kicker credit, Oregon Kids Credit, or other deductions that may increase your refund or reduce what you owe.

If you're filing by mail:

Make sure your return is signed and dated. Returns without signatures are considered incomplete.
Attach a copy of your federal return, all W-2s and 1099s that show Oregon tax withheld, and any required Oregon schedules.
Include Form OR-40-V if you are making a payment with your return.

After you file:

Save a copy of your complete tax return and all supporting documents for your records.
If you e-filed, save your confirmation receipt as proof of timely submission.
If you mailed your return, consider using certified mail or another trackable service and retain the receipt.
Set reminders to check your refund status after two weeks and to make estimated payments if required for the upcoming tax year.
Create or update your Revenue Online account to track future payments, request statements, or update your address.

Frequently Asked Questions

What happens if I miss the April 15 deadline to file my Oregon tax return?

If you miss the April 15 deadline to file your Oregon tax return, you should complete the filing process as soon as possible. The Oregon Department of Revenue charges a late filing penalty and interest on unpaid taxes. You may face additional costs if you owe money and fail to submit a return or request an extension. Refunds may still be available if filed within three years.

Can I e-file my Oregon tax return for free?

Many taxpayers can file their Oregon tax return for free using approved online software. Direct File Oregon and Free File Alliance programs are available based on income or eligibility. These platforms allow you to prepare your return, enter deductions, and file electronically without hassle or cost. Some services even offer expert help or a link to a tax preparer. Refunds may arrive faster with direct deposit.

How do I track the status of my Oregon tax refund?

To check your refund status, access the “Where’s My Refund?” tool on the Oregon Department of Revenue’s website or sign in to your online account. You’ll need your Social Security Number, filing status, and exact refund amount. Refunds for e-filed tax returns often arrive within a few weeks through direct deposit. Paper returns can take longer. Interest may be added if delays exceed state processing timeframes.

What should I do if I made a mistake on my Oregon tax return?

If you discover errors after submitting your Oregon tax return, you can file an amended return using the correct Oregon tax forms. Write “Amended” at the top and include any necessary statements or corrections. Include a copy of your federal return if changes were made. The Oregon Department of Revenue allows you to correct returns from previous tax years, typically within three years of the original filing date.

How do I request more time to file my Oregon return?

You can request more time by filing a federal extension (IRS Form 4868) by April 15. Oregon automatically honors approved federal filing extensions, so there's no need to file a separate state form. However, taxes owed are still due by the original date. If you cannot pay, the Oregon Department of Revenue offers payment plans and programs to help taxpayers reduce penalties and interest.

Can I still file an Oregon tax return for previous tax years?

Yes, taxpayers can file a late Oregon tax return for previous tax years, typically up to three years after the original deadline. You must use the correct Oregon tax forms each year and attach a copy of your federal return. Late refunds may be available, and tax experts recommend filing to avoid penalties or notices from the Oregon Department of Revenue. Contact the agency if you need help accessing past forms.

Do I need to file an Oregon return if I only received federal income?

If you earned only federal income and none from Oregon sources, you may not be required to file an Oregon tax return. However, filing may benefit you if any Oregon tax was withheld or you’re eligible for refundable credits, such as the Oregon Kids Credit. It’s best to review the state’s guidelines or consult a tax preparer to determine whether you must file based on your income and deductions.

How to File Your Oregon Tax Return for 2023: Step-by-Step Guide for Individuals and Small Businesses