Dependency and Indemnity Compensation, the monthly VA payment to eligible survivors of a service member who died in the line of duty or a veteran whose death resulted from a service-connected injury or disease, is tax free and is not taxed by Oregon.
There is nothing to apply for. Leave your Dependency and Indemnity Compensation out of the income you report on your Oregon return.
Your VA award letter showing the Dependency and Indemnity Compensation payments.