Oregon asks whether you are making a short year election because certain taxpayers who were Oregon residents for only part of a tax year may elect to calculate their Oregon tax using only the income earned during their Oregon residency period.
This election is not available to all taxpayers and is generally used in specific residency situations.
Program Entry
Oregon Return → Basic Information → Are You Making a Short Year Election?
What Is a Short Year Election?
A short year election allows certain taxpayers to calculate their Oregon tax based on a shorter tax period instead of the entire calendar year.
The election may be beneficial for taxpayers who:
- Became an Oregon resident during the year; or
- Ceased being an Oregon resident during the year.
Under this election, only the income earned during the Oregon residency period is considered when calculating the tax.
When Should I Answer Yes?
Answer Yes only if you qualify to make the Oregon short year election and want Oregon to calculate your tax using the short-year method.
This election is generally considered by taxpayers who had a change in residency during the tax year and meet Oregon's requirements for the election.
When Should I Answer No?
Answer No if:
- You were a full-year Oregon resident.
- You were a full-year nonresident.
- You do not qualify for the election.
- You choose not to use the short year calculation method.
Most taxpayers will answer No.
How Does This Affect My Return?
Making the short year election changes how Oregon calculates tax on your income.
The election may affect:
- Oregon taxable income
- Tax calculations for part-year residents
- Oregon tax liability
Because the election changes the tax computation, it should only be selected when Oregon's requirements are met.
Notes
- A short year election is generally associated with a change in Oregon residency during the tax year.
- The election applies only to Oregon tax calculations.
- Most Oregon taxpayers will not make a short year election.
- Review Oregon residency rules carefully before selecting Yes.