The Special Processing Instructions field is used to identify taxpayers who qualify for special Oregon tax treatment based on their occupation, residency, or filing circumstances.
Selecting the correct option ensures the Oregon return is processed using the appropriate tax rules and calculations.
Program Entry
- State Section
- Edit the Oregon return using the three dots
- Basic Information
- Special Processing Instructions
The Following Special Processing Instructions Are Available
AIR CARRIER
Select this option if you are an employee of an air carrier whose wages are subject to the federal laws governing taxation of interstate transportation employees.
Oregon taxes these wages based on federal transportation employee sourcing rules rather than the normal Oregon residency and work location rules.
AMTRAK
Select this option if you are an employee covered by the federal Amtrak Act and earn wages as an interstate rail transportation employee.
Special sourcing rules may apply to determine how your wages are taxed by Oregon.
COMBAT ZONE
Select this option if you served in a designated combat zone during the tax year.
Certain combat zone service members may qualify for special filing, payment, and tax treatment under Oregon law.
DAM WORKER
Select this option if you are a qualifying worker employed at a hydroelectric dam project.
Special Oregon income allocation rules may apply to wages earned from qualifying hydroelectric dam construction or related work.
KIA ACTIVE DUTY
Select this option if the taxpayer was killed in action while serving on active military duty.
Special Oregon tax provisions may apply to the final return.
MFS OREGON ONLY
Select this option if you filed a joint federal return but are filing Married Filing Separately for Oregon purposes only.
Oregon allows certain taxpayers to use a different filing status for Oregon than was used on the federal return.
MILITARY NONRESIDENT
Select this option if you are an active-duty military member who is considered a nonresident of Oregon.
Special military residency rules may affect how Oregon taxes military pay and other income.
WATERWAY
Select this option if you are a qualifying waterway worker whose wages are subject to federal interstate transportation employee rules.
Special sourcing rules may apply to determine whether wages are taxable by Oregon.
How Does This Affect My Return?
Selecting a Special Processing Instruction may affect:
- How wages are sourced to Oregon.
- Which income is taxable by Oregon.
- Filing requirements.
- Military tax treatment.
- Return processing by the Oregon Department of Revenue.
Only select a Special Processing Instruction if it applies to your specific situation.
Notes
- Most taxpayers will leave this field blank.
- These options are intended for specific occupations, military situations, or filing circumstances.
- Choosing an incorrect Special Processing Instruction may cause delays in processing or incorrect tax calculations.
- Review the applicable Oregon guidance before making a selection.