Oregon

Oregon Severely Disabled Exemption

Understanding the Benefits and Requirements

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Published on 4 months ago
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Oregon Severely Disabled Exemption

The Oregon Severely Disabled Exemption allows individuals who are severely disabled to claim an exemption from Oregon state income tax on their wages. This exemption is designed to provide relief to those with significant physical or mental impairments that substantially limit their ability to work.

Eligibility Requirements

  • Must be a resident of Oregon.
  • Must have a severe disability as defined by Oregon law, meaning a physical or mental impairment that substantially limits one or more major life activities.
  • Must meet the criteria for exemption as determined by the Oregon Department of Revenue (DOR).

How to Claim the Exemption

To claim the exemption, you must complete Form OR-W-4 and indicate the appropriate exemption code for severely disabled individuals. This form must be submitted to your employer to stop withholding Oregon income tax from your wages.

You must renew this form annually by February 15 of each year you are claiming the exemption.

Important Notes

  • The exemption applies only to Oregon state income tax and does not affect federal tax obligations.
  • Employers are required to honor the exemption if properly documented with Form OR-W-4.
  • Ensure you keep a copy of Form OR-W-4 for your records.

Source:
Publication OR-17: Individual Income Tax Guide
Form OR-40-NP Instructions
Form OR-40: Oregon Income Tax Return

Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.

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