OR state tax

Forum|Forum|1 year ago
May 5, 2024
1 reply
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my daughter's home state is Oregon and goes to school in WA. She worked at school while she was in school.

When filing Oregon income tax using turbotax, it automatically adds all w2, including one from school, to state portion of Turbotax. How to remove that income from state in Turbotax

rjs

Employee

You don't remove the Washington income from the Oregon state tax return. Since your daughter is an Oregon resident, she has to pay Oregon tax on all of her income, no matter where the income is from. The fact that Washington does not have state income tax does not excuse her from paying Oregon tax on her Washington income.

Hal_Al

Employee

You report all your income on your resident state return, including the income earned in the other state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state.

When you worked in a state without an income tax (e.g. Washington), there will be no credit, since there was no WA tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state