Question

Tia and Colin are married. Colin is a full-year OR resident and Tia is part-year OR resident. The filed MFS on their Federal returns and both itemized. The are allowed to use what forms for OR?

a. Tia Form 40N, Colin Form 40
b. Tia Form 40P, Colin Form 40
c. They can both use Form 40 but they have to file separately.

Answer 1

Tia needs to use Form 40N for her Oregon state tax return as a part-year resident, and Colin needs to use Form 40 as a full-year resident. They must file separately.

Step-by-step explanation:

Tia and Colin, who are married and residing in Oregon, filed their federal returns as Married Filing Separately (MFS) and both itemized their deductions. Since Colin is a full-year Oregon (OR) resident and Tia is a part-year OR resident, they need to use different forms for their Oregon state returns.

Tia needs to use Form 40N, which is specifically designed for part-year residents of Oregon. Colin, being a full-year resident, must use Form 40. However, they have to file separately, meaning each of them will file their own individual tax returns.