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March 28, 2023
Question

What do I do if 47% of my total wages were earned in Washington state. Washington does not have a state income tax. The other 53% of total wages earned was in Oregon.

  • March 28, 2023
  • 1 reply
  • 0 views
My total earnings are
 listed under my Oregon W2.

1 reply

March 28, 2023

CORRECTION: This answer was corrected to clarify the situation under which the original answer was based and additional situations were added.

 

In answering your question, I'm assuming you were a full-year Washington resident who worked 55% of the time in Oregon. If that is the case, you are only taxed by Oregon on the money you earned while working in Oregon.

 

File a non-resident Oregon return and only list the wages earned in Oregon. The Oregon tax form has a place to adjust your wages.

 

Here's what to do:

 

  1. Go to the Oregon section of TurboTax
  2. Answer the questions until you get to the screen "Oregon Source Income and Adjustments"
  3. In the box for Wages, you will see the Federal amount. In the Oregon box to the right, enter 53% of the federal amount.
  4. Enter $0 in the rest of the boxes for other types of income and deductions, unless they are related to Oregon, such as rental income from a property located in Oregon

If you were a part-year Oregon resident who moved to Washington but your employer continued to withhold Oregon wages by mistake.

 

If you moved to Washington from Oregon during the year but your employer continued to withhold Oregon wages, file a part-year Oregon return and adjust your Oregon income to reflect what you actually earned while living and working in Oregon.

 

If you moved to Washington during the year but you continued to commute to Oregon and work.

 

All your wages are taxed by Oregon if you worked in Oregon the whole year, whether you were a resident or non-resident. 

 

File a part-year return. On the screen "Oregon Source Income and Adjustments," under Wages, enter all your income because it was received while you were an Oregon resident or earned from Oregon-sources while a non-resident.

 

@mantrex

 

[Edited 03/30/23 | 05:16 PST]

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