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[Reviewed 2/6/2024]
Short answer: If your status is nonresident alien, use OR 40N for your Oregon Income Tax Return.
Below are details as to why I am now updating my resources to assist students in completing the OR 40N - Nonresident.
Through the years, I have received what seems to be conflicting information regarding which is the correct Oregon income tax form for F and J visa nonresident aliens to file when they need to report Oregon income. At our original training in 2002 we were trained on the Oregon resident form. As I read the instructions for the three Oregon forms (40: full-year resident, 40P: part-year resident, and 40N nonresident) and consulted with some friends who do professional tax preparation, I would have assumed that those F and J visa nonresident aliens who live and work only in Oregon would complete the OR 40, full-year resident form.
But some years back I learned that University of Oregon tax help pages suggest their nonresidents aliens to complete the 40N. I sent a query to them (twice) asking why but they did not respond. Then in spring of 2017, the first year that PSU students began using Sprintax, I noticed that for almost all, Sprintax was producing 40N. When I queried Sprintax why, they said it was based upon the data that students enter, but they didn't help me understand the decision-making process.
FYI: I think you will find that if you live and work only in Oregon and compare the results of using OR 40N with OR 40, that the calculations are the same. Your tax will be the same (perhaps a small, insignificant difference). But the 40N is a bit more complicated with more steps.
See the following discussion.
On January 29, 2019, I sent a query to the Oregon Department of Revenue regarding the proper form to use. I presented six scenarios.
For each of the six scenarios below, the following is part of the scenario. Details like previous visits to U.S. were stated to avoid uncertainty as to whether the status is resident alien or nonresident alien.
prior to coming for university studies, they have not been in the U.S. except on a tourist visa.
the internationals are here on F or J visas as students or scholars (NOTE: F and J visas are non-immigrant visas. During the visa interview the US wants confirmation that their intent is to be here temporarily.)
Their federal status is non-resident alien for the tax year in question.
During the tax year, they will have had employment approved by the terms of their visa in one or more of the following categories:
1) on-campus work for the university,
2) CPT (Curricular Practical Training): an internship while still doing coursework
3) OPT (Optional Practical Training): full-time work in their field of study after graduation.
After OPT, some may get further employment using an H1B visa at which time their federal status will be resident alien if they have not already moved into that status.
Scenario #1 (lived and worked in Oregon part of year):
Arrival Fall 2018 (Sept 1) present in the US and Oregon four months during 2018
Employed by PSU doing campus work during fall 2018 term.
They lived only in Oregon while in the U.S.
They worked only in Oregon while in the U.S. during 2018.
Scenario #2 (lived and worked in Oregon full year):
Arrival Fall 2017 (Sept 1) present in the US and Oregon from arrival through 2018
Employed by PSU doing campus work during all of 2018.
They lived only in Oregon while in the U.S.
They worked only in Oregon while in the U.S. during 2018.
Scenario #3a (lived only in Washington, worked only in Oregon full year):
Arrival Fall 2017 (Sept 1) present in the US and Washington twelve months during 2018
Employed by PSU doing campus work during all of 2018.
They have lived only in Vancouver WA while in the U.S.
They worked only in Oregon while in the U.S. during 2018.
Scenario #3b (lived in Washington and Oregon, worked only in Oregon full year):
Arrival Fall 2017 (Sept 1) present in the US and Washington and Oregon during 2018
Employed by PSU doing campus work during all of 2018.
They have lived Vancouver WA from Jan - Aug 2018.
The lived in Portland OR from Sept - Dec 2018.
They worked only in Oregon while in the U.S. during 2018.
Scenario #4 (lived and worked in Oregon, temporary internship in listed states):
Arrival Fall 2016 (Sept 1) present in the US from arrival through 2018
Employed by PSU doing campus work Jan - Mar 2018 and Sep - Dec 2018.
Took a temporary internship position (CPT) in Arizona, California, Indiana or Virginia from Apr - Aug 2018 with the intention of coming back to Portland after the internship.
They lived in Oregon (Jan - Mar 2018 and Sep - Dec 2018) and Arizona, California, Indiana or Virginia (Apr - Aug 2018).
Scenario #5 (lived and worked in Oregon, temporary internship in listed states):
Arrival Fall 2016 (Sept 1) present in the US from arrival through 2018
Employed by PSU doing campus work Jan - Mar 2018 and Sep - Dec 2018.
Took a temporary internship position (CPT) in a state OTHER THAN Arizona, California, Indiana or Virginia from Apr - Aug 2018 with the intention of coming back to Portland after the internship.
They lived in Oregon (Jan - Mar 2018 and Sep - Dec 2018) and a state OTHER THAN Arizona, California, Indiana or Virginia (Apr - Aug 2018).
Scenario #6 (lived and worked in Oregon, then moved to other state for work (OPT); no immediate plans to move back to Oregon):
Arrival Fall 2016 (Sept 1) present in the US twelve months during 2018
Employed by PSU doing campus work Jan - Jun 2018.
After graduation June 2018, took employment in California on OPT and intend to stay in California the duration of the time in the U.S.
They lived in Oregon seven months in 2018 (total time Jan 2018 - July 2018) and California five months (Aug - Dec 2018)
They worked in Oregon and California during 2018.
"I was reviewing your questions and the scenarios that you have in your email . . . and am going to address them all at once. For all of these individuals you should be using the [Oregon] Non-resident form [OR 40N]."
Sprintax:
Sprintax seems to produce OR 40N even for F and J students and scholars even for those who, while in the U.S., have only lived and worked in Oregon. The form is chosen by Sprintax's algorithm based upon data entered by the student.
University of Oregon:
U of O's web page "form finder" indicates that F and J nonresident aliens should use OR 40N. See https://blogs.uoregon.edu/itax/form-finder/
City of Portland (related to city arts tax):
In queries to City of Portland (and a previous, but removed, example on their website) whether F and J nonresident aliens would be subject to the Portland Art Tax, there was a presumption that they would be filing Oregon 40N. (Don't assume from this alone whether or not you are subject to the art tax. See Portland Arts Tax.)
Tax Professor with previous experience assisting non-residents with Oregon forms:
"My crude understanding was that for Oregon purposes, you’re not a resident unless you have a domicile here [a person's fixed, permanent, and principal home for legal purposes]. F and J visa holders are forbidden by federal immigration law from staying here indefinitely, and so I always had them file nonresident returns (40N). They can’t have a domicile in Oregon."
His experience is that tax form submission was never returned because ODR disagreed with the form chosen for filing.