Instructions for Form MET-40-NP (Tax Year 2025)

Revised 01/23/2026

Employer Withholding Information

If your employer withheld the Metro tax from your wages, the "Locality name" will be reported in box 20 of your W-2 as "Metro" or "Metro SHS" and the amount will be reported in box 19. To claim your withholding credit, complete Schedule W-2 (refer to the Schedule W-2 Employer Withholding Summary for Metro SHS Tax" instructions) and submit a copy of your W-2(s) with your return. Each W-2 may consist of multiple pages, and local jurisdiction information might not be reported on page 1 but may be reported on subsequent pages. Certain employers use "Total" or "Total City" in box 20 on page 1 of the W-2 to report the combined amount withheld for both Metro and Multnomah County jurisdictions. This combined amount is not equivalent to Metro withholding, which will be reported with the locality name "Metro" in box 20 on subsequent pages.

Failure to submit a copy of your W-2(s) or failure to respond to our requests for additional documents to verify W-2 information may mean that your Metro withholding cannot be verified. This may cause delays in your return processing and/or result in the removal of the withholding claim from your return, which will reduce your refund or increase the amount you owe. You will receive a bill for any outstanding amounts due.

Contact your employer to request a corrected W-2 if you believe there are errors on your W-2.

General Information

File and Pay Online and Manage Your Tax Accounts at Pro.Portland.gov. Portland Revenue Online (PRO) allows you to:

• Register your personal and business tax accounts
• Update your account information
• File tax returns
• Make payments
• Upload supporting tax pages and documents
• View correspondence mailed to you
• Provide Third-Party Access to your tax preparer

For more information and to create your account, visit Pro.Portland.gov.

Publication OR-17

Metro personal income tax closely follows Oregon personal income tax treatment. See Publication OR-17 for more information about personal income tax laws. It is available at oregon.gov/dor/forms. To the extent necessary, references in Publication OR-17 to the state of Oregon or its agencies should be treated as references to Metro and its agents.

Individuals Required to File a Non-Resident/Part-year Resident (NP) Metro Supportive Housing Services (SHS) Tax Return

Every non-resident or part-year resident of Metro required to file an Oregon income tax return for the taxable year and who reports Metro taxable income over $200,000 using Oregon filing status married filing jointly, head of household or qualifying surviving spouse, or over $125,000 using Oregon filing status single or married filing separately is required to file a Metro NP personal income tax return. You must also file a Metro NP personal income tax return if you file a joint return and you are a full-year resident, but your spouse or domestic partner is a non-resident or part-year resident.

Residency

You are a non-resident if your permanent home was outside Metro all year. To determine if your place of residence is located within the Metro tax jurisdiction, utilize the Metro boundary address lookup tool at gis.oregonmetro.gov/metro-boundary-lookup. An RV is not considered a permanent home outside of Metro. You are a part-year resident if you moved into or out of Metro during the year. There are special circumstances where a resident is treated as a non-resident and a non-resident is treated as a resident. Metro follows these treatments. More information can be found in Oregon's "Publication 17, Individual Income Tax Guide" at oregon.gov/dor/forms.

• Part-year residents. Metro taxes your income from all sources earned or received while you were a Metro resident. Metro also taxes your income from Metro sources while you were a non-resident.
• Non-residents. Metro taxes income you earned while working in Metro and your income from other Metro sources.

Metro Sourced Income

Metro income includes income shown on your federal return for services performed in Metro. Nonresident telecommuters who work for a Metro employer are taxed only on the income earned from work performed in Metro.

Other Metro sources of income (and losses) include:

• Businesses, partnerships, limited liability companies taxed as partnerships, and
  S corporations located or doing business in Metro or providing services within Metro boundaries.
• Unemployment insurance benefit received because of a Metro job.
• Severance pay received because of a Metro job.
• Farms located in Metro.
• Sale of Metro property.
• Rents and royalties for use of Metro property.
• Compensation received for services performed as a fiduciary of a Metro estate or trust.

Income not considered from Metro sources includes:

• Interest and dividends. However, you must include them in Metro income if they were:
  • From a Metro business that you own.
  • Received during the part of the year you were a resident.
  • Passed through from an S corporation or partnership doing business in Metro.
• Metro retirement income received while you were a non-resident unless you were domiciled within Metro.
• Interstate transportation wages from an interstate railroad company, interstate motor carrier, air carrier, or interstate motor private carrier if the income is exempt from Oregon income tax.
• Waterway, air carrier, or hydroelectric dam compensation, if you are a non-resident and the income is exempt from Oregon income tax.
• Military pay of a non-resident.
• Wages earned by a non-resident military spouse who is in Metro only to be with the service member who is stationed in Metro.

Payment Deadline

The payment deadline for this return is April 15, 2026.

Filing Deadline

The filing deadline for this return is April 15, 2026.

Extensions

Metro does not allow an extension of time to pay your tax. The submission of an extension payment by the original return due date provides an automatic six-month filing extension. If you do not have a tax balance due but would like to file an extension, your federal and/or state extension will serve as your extension. When filing your return on the extended due date, check the "Extension Filed" box on the return. If no extension payment was made, please attach a copy of your federal extension or verification of your Oregon extension payment with your return.

Amended Returns

The Revenue Division does not have a separate form for amended tax returns. To amend your 2025 MET-40-NP return, use the form for the tax year being amended and check the "Amended Return" box. If the address for the year you are amending has changed, use your current mailing address and check the "Mailing Address Change" box.

Fill in all amounts on your amended return, even if they are the same as originally filed. If you are amending to make a change to additions, subtractions, or credits, include detail of all items and amounts as well as any carryovers. Please include a statement explaining what changed from the original return.

If you change taxable income by filing an original or amended federal or Oregon income tax return, you must file an amended Form MET-40-NP within 60 days of when the original or amended federal or Oregon income tax return is filed. Include a copy of your original or amended federal or Oregon income tax return with your amended Form MET-40-NP and explain the adjustments made.

On the prepayments line of your amended Form MET-40-NP, enter the net tax as reflected on the original return or as previously adjusted. Do not include any penalty or interest portions of payments already made.

Penalty Calculation

You may be subject to penalties for underpaying your tax liability, filing a late personal income tax return, and/or paying your income tax liability after the original due date of the return. 

Although there is a late penalty for both failing to file a personal income tax return by the due date and failing to pay the tax by the original due date of the return, only one of these late penalties will be applied, even if there is a failure of both requirements.

Late penalties will also be applied if an extension has been requested and the return is filed after the extension due date.

For the purposes of penalty calculations, unpaid tax is your tax liability reduced by any payment of tax made before the original due date and any credit against tax that is claimed on the return.

Underpayment Penalty

You may be subject to a penalty for underpaying your tax liability if, by the original due date of the return, timely payments are not made which are either:

• At least 90% of the total tax balance due, or
• 100% of the prior year's tax liability paid by the original due date.

If you did not satisfy either requirement, you will be charged an underpayment penalty of 5% of the unpaid tax, but not less than $5.

Late Filing Penalty

If you do not file your 2025 Form MET-40-NP by the original due date, file an extension with the Revenue Division by the original due date, or include a copy of your federal extension with your return when you file by the extended due date, the following late filing penalties will be applied:

• 5% of the amount of the unpaid tax
• An additional penalty of 100% of the unpaid tax of all tax years if the failure to file is for three or more consecutive tax years.

No late filing penalty is due if a timely extension is filed with the Revenue Division and a 2025 Form MET-40-NP is filed by the extended due date, or a copy of the federal extension is included with the return and the ‘Extension Filed' box is checked.

Late Payment Penalty

Your 2025 income tax must be paid by April 15, 2026, even if you requested an extension to file your personal income tax return. If you do not pay your tax by the original due date, the following late payment penalties will be applied:

• 5% of the amount of the unpaid tax if the failure to pay is for a period less than four months.
• An additional penalty of 100% of the unpaid tax of all tax years if the failure to pay is for three or more consecutive tax years.

Interest Calculation

Calculate your interest from the original due date to the 15th day of the month following the date of the payment. The interest rate to use can be found in our Tax Administration Policy – Personal Income Tax Interest Rates on Tax Due and Refunds.

Quarterly Underpayment Interest

Quarterly underpayment interest will be due if estimated payments were required and were underpaid. Estimated payments can be made through quarterly estimated payments, employer-provided withholding from a filer's wages, or a combination of both. Calculate your quarterly underpayment interest at the rate in effect for the tax year from the due date of each quarterly estimated payment to the original due date of the tax return to which the estimated payments apply. The amount of underpayment is determined by comparing the 90% of the current total tax liability amount to quarterly estimated payments made prior to the original due date of the tax return.

There is no interest on underpayment of quarterly estimated payments if:

• The total tax liability of the prior tax year was less than $1,000.
• An amount equal to at least 90% of the total tax liability for the current tax year was paid in accordance with Metro Code Section 7.05.190; or
• An amount equal to at least 100% of the prior year's total tax liability was paid in accordance with Metro Code Section 7.05.190.

Federal And Oregon Tax Returns

Your Metro tax is determined using the ratio of your Metro-sourced income to your entire federal income with Oregon adjustments, additions, subtractions, and modifications. Complete your federal return and your Oregon return first. Do this even if you are not required to file a federal return. You must use the information from your federal return and Oregon return to complete your MET-40-NP return.

Please submit the following forms and schedules with your return. If you do not provide copies of the required supporting tax pages, we may adjust or deny your Metro subtractions, deductions, and credits. The list below is not all inclusive, and the Revenue Division has the authority to request additional tax pages or supporting documentation to verify the accuracy of the tax reported on the tax return.

Required Supporting Oregon Tax Pages

Be sure to include the following Oregon tax pages and any associated statements when submitting your return:

• Form OR-40, pages 1-3; Form OR-40-N, pages 1-7; or Form OR-40-P, pages 1-7 that you filed with Oregon.
• Schedule OR-ASC or OR-ASC-NP (if filed)
• Schedule OR-K-1(s) (if Metro previously income modification claimed)

Required Supporting Federal Tax Pages

Be sure to include the following federal tax pages and any associated statements when submitting your return:

• Federal Form 1040, pages 1-2 
• Form(s) W-2 (if Metro SHS tax withheld)
• Federal Schedule 1
• Schedule B (if filed)
• Schedule C (if filed)
• Schedule D (if filed, including Form 4797, Form 6252, and Form 8824)
• Schedule E (if filed)
• Schedule F (if filed)
• Form 4868 (if federal extension filed)
• Form 1099-R (if PERS or federal retirement exemption claimed)
• Schedule(s) K-1 (Form 1065/Form 1120-S/Form 1041) (if Metro pass-through income adjustment claimed)
• Form 8582 (if passive activity loss limitations apply to Metro pass-through loss adjustment)

Tax Return Filing Instructions

Rounding. Round off cents to whole dollars on your return and schedules. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If two or more amounts must be added to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

General Return Information

Metro Supportive Housing Services Personal Income Tax Account #. If you have already registered for an account and know your account number, enter your full Metro SHS Tax Account number beginning with SHP followed by ten digits. If you do not know your number, leave field blank.

Filing Status. Check the box next to your filing status. You must use the filing status corresponding with the filing status used on your Oregon tax return. Choose only one filing status.

Individual Income Tax Form Filed with Oregon. Check only one box indicating the form you filed with Oregon for your 2025 individual tax return.

• Form OR-40.Check this box if you filed an Oregon Form OR-40 for full year Oregon residents.
• Form OR-40-P. Check this box if you filed an Oregon Form OR-40-P for part-year Oregon residents.
• Form OR-40-N. Check this box if you filed an Oregon Form OR-40-N for non-residents of Oregon.

Metro Jurisdiction Residency. Check only one box indicating your Metro residency for the year. Refer to oregonmetro.gov/about-metro/metro-council/find-your-councilor to see if an address is inside the Metro boundary.

• Non-Resident. Check this box if you were not a resident of Metro for any portion of the year.
• Part-Year Resident. Check this box if you were a resident of Metro for a portion of the year.

Taxpayer's Last Name; First Name and Initial. If filing jointly, enter the last name, first name, and middle initial (if applicable) of the taxpayer listed as the primary filer on the Form OR-40, Form OR-40-P, or Form OR-40-N. If taxpayer died during the tax year, check the "deceased" box. A personal income tax return must be filed for a person who died if the person would have been required to file. If you have been appointed personal representative or filed a small estate affidavit, sign the return as "personal representative." A surviving spouse must sign if it is a joint return. If there is no personal representative for the deceased person, only the surviving spouse needs to sign a joint return.

Spouse's Last Name; First Name and Initial. If filing jointly or as married filing separately, enter the last name, first name, and middle initial (if applicable) of the individual listed as the spouse on Form OR-40, Form OR-40-P, or Form OR-40-N. If taxpayer died during the tax year, check the "deceased" box. A personal income tax return must be filed for a person who died if the person would have been required to file. If you have been appointed personal representative or filed a small estate affidavit, sign the return as "personal representative." A surviving spouse must sign if it is a joint return. If there is no personal representative for the deceased person, only the surviving spouse needs to sign a joint return.

Social Security Number. Enter the Social Security Number (SSN) or Individual Tax Identification Number (ITIN) of the corresponding taxpayer and spouse. Refunds will not be issued without a valid SSN or ITIN.

Residence Address. Enter the residential address. If the primary taxpayer and spouse have different residential addresses, list the address of the primary taxpayer. If the residential address has changed, list the current address and mark the "check if changed" box. Unless a mailing address is provided, correspondence will be sent to the residence address on file.

Mailing Address. Only enter an address if the mailing address is different from the residential address. If the mailing address has changed, list the current address and mark the "check if changed" box.

Initial Return Box. Check this box if this is your initial return, if your filing status changed from the previous year, or if the person you are filing jointly with changed from the previous year.

Final Return Box. Check this box if this is your final return.

Amended Return Box. Check this box if you are filing an amended return and have already submitted an original return. See Amended Returns in the General Information section for more information about amending your MET-40-NP return.

Extension Filed Box. Check this box If you have filed a federal or state extension, or if you submitted an extension payment by the original due date of the return. Include required copies of federal or state extensions as applicable (see Extensions under the General Information section for additional information).

Part I – Metro Taxable Income

Important: You must complete Schedule INC prior to entering line 1. See instructions for Schedule INC.

Line 1. Metro taxable income. Enter the amount from Schedule INC, line 29M.

Line 2. Previously taxed income modification. If you received a Schedule K-1 (Form 1065) or a Schedule K-1 (Form 1120-S) from a pass-through entity (PTE) that was subject to the Metro Business Income Tax (METBIT), complete Schedule PTI and report your total sum of modification on line 2 of the return. Net pass-through gains will be reported on this line as a negative value, and a net operating loss deduction will be reported on this line as a positive value. See instructions for Schedule PTI for additional guidance.

Line 3. Less allowable deductions. Enter the amount from Schedule INC, line 38M. Enter as a negative number.

Line 4. Metro Income Exemption. If you use the single filing status of single or married filing separately, enter $125,000 on line 4. If you use the joint filing status of married filing jointly, head of household, or qualifying surviving spouse, enter $200,000 on line 4. Enter as a negative number.

Line 5. Income Subject to Tax. Enter the sum of line 1 through line 4 on line 5. If the balance is less than $0, enter $0.

Part II – Metro Supportive Housing Services Tax

Line 6. Tax. Multiply line 5 by 1% and enter on line 6. This is your Metro personal income tax liability.

Line 7. Credit for Taxes Paid to Another State.

• Non-residents. You are not allowed to claim a credit on your return.
• Part-year residents. Your credit is based on your mutually-taxed income during the part of the year that you were a resident.

This credit can only be taken if the filer claims a credit for income taxes paid to another state on the filer's Oregon income tax return or if a composite return was filed and there was no credit allowed on the other state's tax return. A Metro part-year resident figures the credit as the lesser of the Metro tax based on mutually taxed income or the tax actually paid to the other state for the portion of the year they were a resident. To calculate the Metro tax based on mutually taxed income, see our Tax Administration Policy – Credit for Taxes Paid to Another State.

Enter the lesser of the Metro tax based on mutually taxed income or the tax actually paid to the other state on line 7. Enter as a negative number.

Line 8. Employer Withholding. If you had Metro SHS tax withheld from your wages by your employer(s), complete Schedule W-2 and enter the total sum from each field (b) on line 8 of the return as a negative number. If you have tax to pay, consider contacting your employer(s) to increase the amount your employer(s) withhold from your wages.

Line 9. Prepayments. Enter the total amount of prepayments as a negative number. Include all quarterly estimated payments, extension payments, and any credits carried forward from prior years. Employer withholding must be listed separately on line 8. Do not include employer withholding with prepayments on line 9.

Line 10. Penalty. Enter all late penalties that apply, if known. Leave blank if unknown or not applicable. If additional penalty is owed but was not calculated at the time of return submission, you will receive a bill by mail.

Line 11. Interest. Enter interest due on tax not paid by the due date, if known. Leave blank if unknown or not applicable. If additional interest is owed but was not calculated at the time of return submission, you will receive a bill by mail.

Line 12. Balance Due or (Overpayment). Add lines 6 through 11 and enter the sum on line 12. If the sum is negative, you have an overpayment for the year. If the sum is positive, you have a balance due.

Part III – Tax Due / Refund

Line 13. Overpayment. If line 12 is negative, this is the amount you have overpaid. If you have an overpayment, you may make an irrevocable choice to have the balance refunded to you or applied as an estimated payment to the next open tax year. If no election is made, any overpayment will be refunded to you.

Line 13a. Refund. Enter the amount of the overpayment you would like refunded to you on line 13a. If you would like direct deposit of your refund, you must file your return online at Pro.Portland.gov. If your return is filed on paper, you will receive your refund in the mail by check. This election is irrevocable.

Line 13b. Apply as an estimated tax payment. Enter the amount of the overpayment you would like to apply as an estimated payment to the next open tax year on this line. This election is irrevocable.

Line 14. Amount Due. If line 12 is positive, you have a balance is due. Pay by April 15, 2026, to avoid late payment penalties and interest. Make your check payable to ‘Metro SHS Tax'. For fastest payment processing, pay online at Pro.Portland.gov.

Part IV – Signature

Signature(s). Be sure to sign and date your return. If you are filing a joint return, both taxpayers must sign. By signing the return, you acknowledge, under penalty of false swearing, that the information on the return is true, correct, and complete.

Preparer Signature. Anyone who prepares, advises, or assists in preparing personal income tax returns in exchange for compensation of any kind must be licensed to prepare Oregon returns and must sign the return.

Mailing Instructions

For faster processing, make sure to include Schedule W-2 and a copy of your W-2 if you are claiming employer withholding. Include Schedule PTI if you are claiming a pass-through income modification. Also include a copy of your federal and Oregon tax pages. 

If you are including payment with your return, send your completed return, payment, and all required supporting tax pages to:

   Revenue Division – Metro SHS Tax
   PO Box 9250
   Portland, OR 97207-9250

Make the check payable to ‘Metro SHS Tax.' For fastest payment processing, pay online by logging into your Portland Revenue Online account at Pro.Portland.gov.

If payment is not included with your return, send your completed return and all required supporting tax pages to:

   Processing – Metro SHS Tax
   111 SW Columbia St, Suite 600
   Portland, OR 97201-5840

Schedule INC for Metro SHS Tax

Use this schedule to calculate your Metro taxable income reported on line 1 in Part I of the return and your Metro allowable deductions reported on line 3 in Part I of the return.

Lines 1 through 29 of Schedule INC consist of two columns. The amounts reported on the federal column (F) correspond to your federal adjusted gross income (AGI), additions, and subtractions. The amounts reported on the Metro column (M) correspond your income from all sources earned or received while you were a Metro resident and your income from Metro sources while you were a non-resident, and includes Metro adjustments, additions, and subtractions. The sum of your Metro column will determine your Metro taxable income and will be reported on line 1 of Part I of the return. Your Metro total divided by your federal total will determine your Metro percentage. The deductions allowed on your Oregon return multiplied by your Metro percentage, plus your charitable art donation if claimed on your Oregon return, will determine your total allowed Metro deduction and will be reported on line 3 of Part I of the return.

For lines 1F through 20F of the federal column, you will enter the amounts reported on your federal return for the corresponding line items. If you filed federal Form 1040 or 1040-SR, these will be the amounts on lines 1 through 11b and Schedule 1, lines 1 through 22.

In the Metro column, you will report the amounts from the corresponding federal line that are taxed by Metro. For non-residents, Metro taxes only your income from Metro sources. For part-year residents, Metro taxes your income from all sources earned or received while you were a Metro resident and also taxes your income from Metro sources while you were a non-resident. For full-year residents, Metro taxes your income from all sources. If you are a full-year resident filing jointly with a spouse who has a part-time resident or non-resident residency status on Form Metro-40-NP, all of your income in the federal column must be included in the Metro column. For more information on how to determine your Metro-source income, refer to Metro Sourced Income in the General Information section.

Income

Line 1M. Wages, salaries, and other pay for work.

• 1F. Enter the amount from federal Form 1040 or 1040-SR, line 1z.
• 1M. Enter the appropriate amount based on your Metro residency status.
  • Non-residents: Enter the amount you earned while working in Metro for each job. If that amount differs from the Metro wages on your Form W-2 because you performed services for your employer both in Metro and outside of Metro, request a signed statement from your employer verifying the number of days worked in Metro and the total number of days worked everywhere. Keep this document and a statement explaining your calculations with your records. Compute your Metro-source income using the following formula. Don't include holidays, vacation days, and sick days as days actually worked but do include them in total wages:
    • Days actually worked in Metro ÷ Days actually worked everywhere x Total wages (line 1F) = Metro wages (line 1M)
  • Part-year residents: Enter amounts you earned while a Metro resident and any amounts you earned working in Metro while you were a non-resident.

Line 2. Interest income.

• 2F.Enter the amount from federal Form 1040 or 1040-SR, line 2b.
• 2M. Enter any interest included on line 2F that you received during the part of the year you were a Metro resident. Also include the amount of interest income on line 2F that you received from Metro business activity while you were a non-resident.

Line 3. Dividend income.

• 3F. Enter the amount from federal Form 1040 or 1040-SR, line 3b.
• 3M. Determine the amount of dividends on line 3F that you received from a Metro business activity source while you were a non-resident. This includes dividends passed through to you from an S corporation or partnership doing business in Metro or providing services within the Metro boundaries. These are dividends your S corporation or partnership received on the stock of another corporation. Add any dividend income included on line 3F that you received during the part of the year you were a Metro resident.

Line 4. State and local income tax refunds.

• 4F. Enter the amount from federal Schedule 1, line 1.
• 4M. If you received an income tax refund from Oregon, another state, or local government that is included in your federal income, and you deducted those taxes on a prior year's Metro return, include the refund in your Metro income. This refund is not taxable to Metro if you did not deduct the taxes on an Oregon or Metro return. Metro does not tax Metro income tax refunds you received, so don't include amounts received from Metro on line 4M.

Line 5. Alimony received.

• 5F. Enter the amount from federal Schedule 1, line 2a.
• 5M. Enter alimony you received for the part of the year you were a Metro resident.

Line 6. Business income or loss.

• 6F.Enter the amount from federal Schedule 1, line 3.
• 6M. Determine the amount of income or loss from a Metro business activity for the part of the year you were a non-resident. Add all business income or losses incurred during the part of the year you were a resident of Metro.

Line 7. Capital gain or loss.

• 7F. Enter the amount from federal Form 1040 or 1040-SR, line 7.
• 7M. Determine the amount of gain or loss and capital gain distributions from Metro sources for the part of the year you were a non-resident. Add the amount of your capital gains received and losses incurred during the part of the year you were a Metro resident. Limit losses to $3,000 ($1,500 if married filing separately).

Line 8. Other income or losses.

• 8F. Enter the amount from federal Schedule 1, line 4.
• 8M. Determine the amount of gain or loss from Metro sources for the part of the year you were a non-resident. Add the gain received or loss incurred during the part of the year you were a Metro resident.

Line 9. IRA distributions.

• 9F. Enter the amount from federal Form 1040 or 1040-SR, line 4b.
• 9M. Determine the amount of any taxable individual retirement arrangement (IRA) distributions you received while a Metro resident. Include any amounts you converted from a regular IRA into a Roth IRA while you lived in Metro.

Line 10. Pension and annuities.

• 10F. Enter the amount from federal Form 1040 or 1040-SR, line 5b.
• 10M. Enter the amount of taxable pensions and annuities you received while a Metro resident. Do not include Railroad Retirement Benefits (RRB1099-R), Oregon Public Employee Retirement System (PERS) benefits, Federal Employee Retirement System (FERS) benefits, Civil Service Retirement System (CSRS) benefits, or military retirement benefits. If you are domiciled in Metro, you must also include any Metro-source pensions you received. This is true even though you may qualify to file as a non-resident under the tests for special case Metro residents or Metro residents living abroad. For example, if you lived in Metro before you retired and have not changed your permanent home to a location outside Metro boundaries, you must report the pension you earned while you worked in Metro.

Line 11. Schedule E income.

• 11F. Enter the amount from federal Schedule 1, line 5.
• 11M. Determine the income received and losses incurred from rents, royalties, partnerships,
  S corporations, real estate investment trusts (REITs), estates, trusts, etc. reported on federal Schedule E from Metro sources during the part of the year you were a non-resident. Add the amount received or incurred during the part of the year you were a Metro resident. If you have pass-through income that is taxed under the Metro Business Income Tax (METBIT), include it here. You are entitled to a previously taxed income modification on Schedule PTI, and business income/loss that is subject to METBIT will be deducted/added back on Schedule PTI.

Line 12. Farm income or loss.

• 12F. Enter the amount from federal Schedule 1, line 6.
• 12M. Determine the amount of income received or loss incurred from a Metro farm while you were a non-resident. Add the amount of farm income received or loss incurred during the part of the year you were a Metro resident.

Line 13. Social Security benefits and unemployment and other income.

• 13F. Enter Social Security benefits from federal Form 1040 or 1040-SR, line 6b; and unemployment and other income from federal Schedule 1, lines 7 and 9.
• 13M.
  • Do not include Social Security, Railroad Retirement Board benefits, or Railroad Retirement Board unemployment benefits, as Metro does not tax this income.
  • Include unemployment benefits received from a Metro job or while a Metro resident; Oregon Lottery winnings; other winnings received while a Metro resident, severance pay received from a Metro job or while a Metro resident, and any other taxable income on line 13F from Metro sources or received while a Metro resident.

Line 14. Total Income.

• 14F. Enter the sum of lines 1F through 13F.
• 14M. Enter the sum of lines 1M through 13M.

Adjustments

Line 15. IRA or self-employed SEP and SIMPLE contributions.

• 15F. Enter the amount from federal Schedule 1, lines 16 and 20. Enter as a negative number.
• 15M. Metro follows the federal definition of earned income and compensation used to calculate your IRA and other retirement plan deductions. Determine the amount you paid during the part of the year you were a Metro resident. Add the amount calculated for the time you were a non-resident. This deduction cannot be more than the amount of compensation included in the Metro column. Enter as a negative number.
  • IRA. Use the following formula to determine your deduction for the part of the year you were a non-resident:
    • Metro earned income while a non-resident ÷ Total earned income while a non-resident everywhere x Contributions made while a non-resident = Non-resident deduction
  • Self-employed SEP, SIMPLE, and qualified plans. Use the following formula to determine your allowable deduction for the part of the year you were a non-resident:
    • Metro compensation while a non-resident ÷ Total compensation while a non-resident x Contributions made while a non-resident = Non-resident deduction

Line 16. Educator expenses deduction.

• 16F. Enter the amount from federal Schedule 1, line 11s and 21. Enter as a negative number.
• 16M. Add the qualified educator expenses you paid during the part of the year you were a Metro resident with the amount of qualified educator expenses you paid while working in or providing educator services to students in Metro elementary or secondary schools while a non-resident. Enter the smaller of the result or the amount deducted on your federal return. Enter the total as a negative number on line 16M.

Line 17. Moving expenses.

• 17F. Enter the amount from federal Schedule 1, line 14. Enter as a negative number.
• 17M. Enter moving expenses as a negative number in the Metro column only if all of the following are true for you (or your spouse, if filing jointly):
  • You are on active duty in the United States Army, Navy, Air Force, Marines, or Coast Guard.
  • Your expenses are deductible on your federal return because they are related to a permanent change of station (known as a PCS move).
  • Your new duty station is in Metro.
  • You have taxable income from employment (military, civilian, or self-employment) performed in Metro.

Line 18. Deductions for self-employment tax.

• 18F. Enter the amount from federal Schedule 1, line 15. Enter as a negative number.
• 18M. The Metro deduction cannot be more than the federal deduction. Enter as a negative number. Use the following formula to determine the amount of your self-employment tax on earnings taxed by Metro:
  • Self-employment earnings taxed by Metro ÷ Total taxable self-employment earnings x Federal deduction for self-employment tax = Metro deduction

Line 19. Self-employed health insurance deduction.

• 19F. Enter the amount from federal Schedule 1, line 17. Enter as a negative number.
• 19M. Metro allows a deduction of 100% of your health insurance premiums related to your self-employment for the part of the year you were a Metro resident. Add the health insurance premiums paid by your Metro business while a non-resident. Your total Metro deduction cannot be more than your federal deduction. Enter as a negative number.

Line 20. Alimony paid.

• 20F. Enter the amount from federal Schedule 1, line 19 a. Enter as a negative number.
• 20M. Determine if the alimony you paid to your former spouse is deductible for federal purposes. If so, use the following formula to calculate your Metro deduction for the part of the year you were a non-resident and add that amount to the alimony you paid while you were a resident:
  • Metro-source income while a non-resident ÷ Total income while a non-resident x Alimony paid while a non-resident = Non-resident deduction
  • Enter as a negative number.

Line 21. Total adjustments from Schedule ASC.

• 21F. Enter the federal total from Schedule ASC, section 1, line 1f.
• 21M. Enter the Metro total from Schedule ASC, section 1, line 1f.

Line 22. Income after adjustments.

• 22F. Enter the sum of lines 15F through 21F.
• 22M. Enter the sum of lines 15M through 21M.

Line 23. Total adjustments.

• 23F. Enter the sum of line 14F and line 22F. Line 23F should match your federal AGI reported on line 11 of Form 1040, Form 1040-SR, or Form 1040-NR; or line 1C of Form 1040-X. If the amounts are not the same, check that you transferred the figures from your federal return correctly.
• 23M. Enter the sum of line 14M and line 22M.

Additions

Line 24. Total additions from Schedule ASC.

• 24F. Enter the federal total from Schedule ASC, section 2, line 2f.
• 24M. Enter the Metro total from Schedule ASC, section 2, line 2f.

Line 25. Income after additions.

• 25F. Enter the sum of line 23F and line 24F.
• 25M. Enter the sum of line 23M and line 24M.

Subtractions

Line 26. Social Security and tier 1 Railroad Retirement Board benefits.

• 26F. Enter Social Security and tier 1 Railroad Retirement Board benefits you included on line 1F or 13F. Enter as a negative number. If you reported a subtraction on your Schedule OR-ASC in section 2 or OR-ASC-NP in section 3 under code 330 for Tier 2, windfall/vested dual, supplemental, or unemployment Railroad Retirement Board benefits, these are subtracted on Schedule ASC in section 3 and not on line 26F. Enter as a negative number.

Line 27. Oregon PERS or federal pension benefits.

• 27F. Enter amounts for Oregon Public Employee Retirement System and/or federal pension benefits included on line 10F that are taxed by Oregon, including Federal Employee Retirement System (FERS) benefits, Civil Service Retirement System (CSRS) benefits, and military retirement. Enter as a negative number. Submit a copy of Form 1099-R for each source claimed. You are only allowed a deduction of income that was not already exempted on your federal or Oregon return.

Line 28. Total subtractions from Schedule ASC.

• 28F. Enter the federal total from Schedule ASC, section 3, line 3f.
• 28M. Enter the Metro total from Schedule ASC, section 3, line 3f.

Line 29. Income after subtractions.

• 29F. Enter the result of line 25F minus lines 26F through 28F.
• 29M. Enter the result of line 25M minus lines 26M through 28M. Enter line 29M on Form MET-40-NP, line 1.

Metro Percentage

Line 30. Metro percentage. To find your Metro percentage, divide the amount on line 29M by the amount on line 29F. If the amount on line 29M is more than the amount on line 29F or if the amount on line 29M is positive but the amount on line 29F is zero or negative, your Metro percentage is 100%. If both amounts are negative, treat both as if they are positive, and then:

• If the Metro number is smaller than the federal number, your Metro percentage is 100%.
• If the federal number is smaller than the Metro number, divide the federal number by the Metro number. Round to 6 decimal places. This line cannot be more than 1.0.

Allowable Metro Deduction

Deductions and modifications in this section further adjust your Metro taxable income. Your Metro percentage will determine the amount of the allowed deductions listed on lines 31 through 33.

Line 31. Oregon itemized or standard deduction. Enter the larger of your Oregon itemized deduction or your Oregon standard deduction, which is on line 18 of Form OR-40; line 39 of Form OR-40-P; or line 39 of Form OR-40-N. Enter as a negative number.

Line 32. Federal tax liability subtraction. Enter the amount on line 10 of Form OR-40; line 40 of Form OR-40-N; or line 40 of Form OR-40-P. Enter as a negative number.

Line 33. Total Oregon modifications from Schedule ASC. Enter the total from Schedule ASC, Section 4, line 4f.

Line 34. Total. Enter the sum of lines 31, 32, and 33.

Line 35. Metro Percentage. Enter the amount from line 30.

Line 36. Deductions and modifications multiplied by the Metro percentage. Enter the result of line 34 multiplied by line 35.

Line 37. Charitable art donation. Artists who make a charitable art donation may take a full deduction if the donation was reported on your Oregon tax return. If you filed a Form OR-40 and claimed a subtraction for "Artist's charitable contribution" using code 301 on Schedule OR-ASC, do not claim the modification on Schedule ASC but instead enter it here. If you filed a Form OR-40-P and claimed a modification for "Artist's charitable contribution" using code 600 on Schedule OR-ASC-NP, do not claim the modification on Schedule ASC but instead enter it here. If you filed a Form OR-40-N and claimed a charitable art donation on line 43, enter the amount here. Enter as a negative number.

Line 38. Total Metro deduction allowed on return. Enter the sum of line 36 and line 37. Enter the amount on line 3, Part I of the return. If this amount is a positive number, enter zero on line 3, Part I.

Schedule W-2 Employer Withholding Summary for Metro SHS Tax

Use this schedule to calculate the total amount of Metro SHS tax that was withheld by your employer(s). If your employer(s) withheld the Metro SHS tax, information regarding the withholding will be shown in boxes 18, 19, and 20 of your W-2. If you file a joint Metro tax return, include information for both the primary filer and spouse on Schedule W-2.

Only include box 18 and box 19 information if the locality in box 20 says "Metro" or "Metro SHS". Do not include information for the locality of "MULT", "MultCo", or "Multnomah County". Multnomah County withholding cannot be claimed on a Metro SHS tax return. To claim Multnomah County withholding, you must file a Multnomah County Personal Income Tax return, which is a separate form. If no Metro SHS tax was withheld on your behalf (or your spouse's behalf, if filing jointly) by your employer(s), you do not need to complete this schedule.

Report each W-2 as a separate record. Round off cents to whole dollars. If two or more amounts must be added to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Employee SSN. Enter the social security number of the filer shown in box a on the W-2.

Employer FEIN. Enter the employer identification number (EIN) shown in box b of the W-2.

Employer Name. Enter the name of the employer shown in box c of the W-2.

Field (a). Local Wages, Tips, Etc. Enter the amount shown in box 18 of the W-2. Make sure that the locality name shown in box 20 indicates that the value in box 18 is for the Metro SHS tax.

Field (b). Local Income Tax Withheld. Enter the amount shown in box 19 of the W-2. Make sure that the locality name shown in box 20 indicates that the value in box 19 is for the Metro SHS tax.

Additional Employer Withholding. If you have more than three W-2s that show Metro Tax withholding, use additional copies of the Schedule W-2 Employer Withholding Summary.

Total for each field (b).Enter the sum of all Metro Tax withheld. If using more than one page, total all pages on the ‘Total' line on the first page and enter the amount from the ‘Total' line on line 8 in Part II of the return.

Schedule PTI – Previously Taxed Income Modification for Metro SHS Tax

Use this schedule to determine the amount of previously taxed income modification to report for pass-through income/loss that was already subject to the Metro Business Income Tax (METBIT). This schedule must be completed to determine the value for line 2 in Part I of the return. If your pass-through income was not subject to tax under the METBIT for any reason, you are not eligible to claim a previously taxed income modification.

Income from Pass-Through Entity Subject to METBIT

You are allowed a deduction from personal taxable income for previously taxed income derived from a pass-through entity (PTE) subject to the METBIT. To take this deduction, you must have documentation from the PTE showing your share of income that was subject to tax on the PTE's METBIT return. The deduction is limited to the amount of pass-through income, from the entity that paid the METBIT, that is included in your federal Form 1040.

For more information related to this modification, please read our Tax Administration Policy – Deduction for Previously Taxed Income Received from a Pass-Through Entity.

Losses from Pass-Through Entity Subject to METBIT

Net operating losses generated in the current tax year at the PTE level are allowed to be claimed at the individual level to the extent that the loss is allowed on the federal and Oregon return. A pass-through loss cannot exceed the amount of pass-through loss included in Metro taxable income and cannot reduce your Metro taxable income to an amount below zero.

If you claimed a net operating loss deduction (NOLD) on your federal Form 1040 that was from a carryforward of a net operating loss from a year that the PTE was subject to the METBIT, the deduction is disallowed for purposes of the Metro SHS Personal Income Tax and must be added back to your Metro taxable income as a pass-through modification. Include a statement explaining the adjustment.

For more information related to pass-through losses, please read our Tax Administration Policy – Net Operating Losses and Net Operating Loss Deduction from Pass-Through Entities.

Schedule PTI Instructions

Report each PTE on a separate line. If income or loss flows through one or more pass-through entities between the entity that paid tax and your federal return, adjustments may be required. Submit a copy of the corresponding Schedule K-1 for each modification claimed.

Field (a). Tax ID of Pass-Through Entity. Enter the S corporation or partnership employer identification number from box A of the Schedule K-1.

Field (b). Name of Pass-Through Entity. Enter the name of the S corporation or partnership from box B of the Schedule K-1.

Field (c). Income Subject to Tax from Pass-Through Entity. For the deduction for previously taxed income from a PTE subject to the METBIT, enter the lesser of:

• Metro "income subject to tax" from the S corporation or partnership return that was reported to you by the PTE with Schedule K-1, or
• The amount of pass-through income from the entity that paid the METBIT that is included in your federal Form 1040.

For net operation loss deductions (NOLD) that must be added back, enter the amount of net operating loss deduction allowed on your federal return from a pass-through entity subject to the METBIT. Enter a loss as a negative number.

Field (d). Ownership Percentage. If the amount reported in field (c) was the entity's "income subject to tax", enter your ownership percentage in the PTE.

If the amount reported in field (c) was the amount of pass-through income from the entity that paid the METBIT that is included in your federal Form 1040, enter that entity's Metro apportionment percentage as reported on their Metro Business Tax Return.

For a NOLD that must be added back, enter 100% as 1.00000.

Field (e). Modifications Claimed for Previously Taxed Income and Losses. Multiply field (c) by field (d) and enter the result. Enter deductions for income from a PTE's income subject to tax as a positive number. Enter losses as a negative number.

Total for each field (e).Enter the sum of all eligible previously taxed income/loss from field (e). Enter the amount from the ‘Total' line on line 2, Part I of the return. If you have a net loss, enter this as a positive number on line 2. If you have a net gain, enter this as a negative number on line 2.

Check box for an entity that elected the actual method for previously taxed income. If one of the entities included on your Schedule PTI has elected the actual method for allocating the maximum previously taxed income allowable, check the box.

Additional previously taxed income modifications. If you have previously taxed income/loss from more than three PTEs to deduct or add-back, use additional copies of the Schedule PTI form and total all pages on the ‘Total' line on the first page.

Schedule ASC for Metro SHS Tax

If you file an Oregon return and claim additional income adjustments, additions, subtractions, and modification on Schedule OR-ASC or Schedule OR-ASC-NP, use Schedule ASC to make the corresponding applicable Metro adjustments, additions, subtractions, and modifications on your Metro return. Any adjustment, addition, subtraction, or modification reported on Schedule ASC must be identified with the same numerical code that was used to claim the corresponding adjustment, addition, subtraction, or modification on Schedule OR-ASC or Schedule OR-ASC-NP. As with the Oregon schedule, each code may only be used one time on Schedule ASC.

If any adjustments, additions, subtractions, or modifications are claimed on Schedule ASC, include the schedule when filing your Form MET-40-NP, and also include a copy of your Schedule OR-ASC or Schedule OR-ASC-NP with your supporting tax pages. If you require more lines than are available on Schedule ASC, use additional copies of the schedule as needed to report any additional information and be sure to include all pages with your return. Enter the totals of all line items of each section of each page of Schedule ASC on Schedule INC. If your Schedule ASC has more than one page, be sure that you submit all pages with your return.

When determining the federal amount to report on the Schedule ASC, enter the amount that would be reported on your Metro return if you were a full-year resident of Metro. When determining the Metro amount to report on the Schedule ASC, calculate the portion of the Oregon amount from Schedule OR-ASC or Schedule OR-ASC-NP that applies to Metro for the portion of the year you were a Metro resident and the portion of the year you were a non-resident with Metro source income. For more details about codes and adjustments, additions, subtractions, and modifications reported on Schedule OR-ASC and Schedule OR-ASC-NP, refer to Oregon's Publication OR-17.

Section 1: Adjustments (codes 001–099) 

This section is to report additional income adjustments not already reported on your Metro return. Enter only adjustments you reported on your Oregon individual tax return on Schedule OR-ASC-NP, Section 1. If you did not claim any adjustments on Schedule OR-ASC-NP, Section 1, leave this section blank.

Step 1:

• Taxpayers who filed Schedule OR-ASC-NP, Section 1: For each adjustment reported, enter the code from the Oregon form, the federal amount from the federal column from the Oregon form, and the Metro portion of the Oregon amount shown on the Oregon form. Enter as a negative number.
• Taxpayers who filed Schedule OR-ASC: For full year Oregon residents, there are no corresponding adjustment codes on the Oregon Schedule OR-ASC because these adjustments flow through to the Form OR-40 via your federal adjusted gross income. If you are a full-year Oregon resident but a non-resident or part-year resident of Metro, you may be eligible to claim an adjustment for the Metro portion of the following items, even though they are not claimed on your Schedule OR-ASC:
  • certain business expenses as a reservist, performing artist, or fee-based government official claimed on line 12 of Schedule 1 of federal Form 1040 (code 002)
  • a health savings account deduction claimed on line 13 of Schedule 1 of federal Form 1040 (code 003)
  • penalty on early withdrawal of savings claimed on line 18 of Schedule 1 of federal Form 1040 (code 004)
  • any write-in adjustments claimed on line 24z of Schedule 1 of federal Form 1040 (code 005)
  • charitable contributions of up to $300 if you are claiming neither federal itemized deductions nor Oregon itemized deductions (code 007).

If any of these apply, refer to Oregon Publication OR-17 for more information and use the applicable Oregon numeric code to report the Metro portion of the adjustments in the Metro column. List the amount reported on your federal return in the federal column. Enter as a negative number.

Step 2:

• Enter the totals for the federal and Metro columns on Schedule INC, lines 21F and 21M.

Section 2: Additions (codes 100–199) 

This section is to report additions to your income that the federal government does not tax but Oregon and Metro tax. Enter only additions you reported on your Oregon individual tax return on Schedule OR-ASC-NP, Section 2 or Schedule OR-ASC, Section 1. If you did not claim any adjustments on your Oregon return, leave this section blank.

Step 1:

• Taxpayers who filed Schedule OR-ASC-NP, Section 2: For each addition reported on your Oregon schedule that is applicable to Metro, enter the code from the Oregon form, the federal amount from the federal column from the Oregon form, and the Metro portion of the Oregon amount shown on the Oregon form.
• Taxpayers who filed Schedule OR-ASC, Section 1: For each addition reported on your Oregon schedule that is applicable to Metro, enter the code from the Oregon form, the applicable federal amount from your Form 1040, and the Metro portion of the Oregon amount shown on the Oregon form.

Step 2:

• Enter the totals for the federal and Metro columns on Schedule INC, lines 24F and 24M.

Section 3: Subtractions (codes 300–399) 

Subtractions are items the federal government taxes but Oregon and Metro do not tax. You can only subtract amounts that are included in income reported on Schedule INC. Amounts that are not included in your Metro income cannot be subtracted.

Step 1:

• Taxpayers who filed Schedule OR-ASC-NP, Section 3: For each subtraction reported on your Oregon schedule that is applicable to Metro, enter the code from the Oregon form, the federal amount from the federal column from the Oregon form, and the Metro portion of the Oregon amount shown on the Oregon form. Enter as a negative number.
• Taxpayers who filed Schedule OR-ASC, Section 2: For each subtraction reported on your Oregon schedule that is applicable to Metro, enter the code from the Oregon form, the applicable federal amount from your Form 1040, and the Metro portion of the Oregon amount shown on the Oregon form. Enter as a negative number.

NOTE: If you filed a Form OR-40 and Schedule OR-ASC with a subtraction (code 301) for "Artist's charitable contribution," do not include this subtraction on the Schedule ASC. Instead, claim the modification on line 37 of the Schedule INC.

Step 2:

• Enter the totals for the federal and Metro columns on Schedule INC, lines 28F and 28M.

Section 4: Modifications (codes 600–699)

Modifications are items that further adjust your Metro taxable income. For Metro non-residents or part-year residents who are also Oregon non-residents or part-year residents, your modification total will be determined by multiplying your Metro modifications by your Metro percentage. Full-year Oregon residents who have completed Schedule OR-ASC will claim modifications as either additions or subtractions on the Schedule OR-ASC and will not complete this section.

Step 1:

• Taxpayers who filed Schedule OR-ASC-NP, Section 1: For each modification reported on the Schedule OR-ASC-NP, enter the code from the Oregon form and the Oregon amount shown on the Oregon form. Enter the Metro modification as negative if it is a negative value on the Oregon Schedule OR-ASC-NP or as positive if it is a positive value on the Oregon Schedule OR-ASC-NP.
• Taxpayers who filed Schedule OR-ASC: For full year Oregon residents, the same items reported as modifications on the Schedule OR-ASC-NP for Oregon non-residents and Oregon part-year residents are reported as additions or subtractions on Schedule OR-ASC and will be reported under different code numbers than are used by Oregon non-residents and part-year residents. If you filed as a full year Oregon resident, section 4 is not applicable.

Step 2:

• Enter the total on Schedule INC, line 33.