California or Oregon taxes

Forum|Forum|1 year ago
May 19, 2024
2 replies
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Hello. My wife and I had our house in California since the mid 1990s. We purchased a second home in Oregon in late 2021. Starting the first day of 2023, I live in Oregon pretty much full time. My wife spends most of her time in California. Still happily married, just taking care of two wonderful homes. She is unemployed. I am full time working remote for an East Coast company.

We still have California driver’s licenses, and keep our California address for banks and investments.

Turbo Tax treated my income as Oregon income, and everything else as California income.

Does that sound right? Anything else we need to know or do?

Not A Product Question

TomD8

Employee

You may be in a situation of dual residency, which would require you file as a resident in each of the two states. You can determine that by reviewing each state's legal definition of "resident".

Oregon's definition is described in Section (1) of this Oregon statute:

https://oregon.public.law/statutes/ors_316.027

An Oregon resident is taxed by Oregon on all their income, regardless of its source.

California's definition of "resident" is contained in this CA tax publication. In particular, see Section G on page 5:

https://www.ftb.ca.gov/forms/2023/2023-1031-publication.pdf

A California resident is taxed by California on all their income, regardless of source.

If you do have to file in both states, then you would be able to claim a credit on your OR return for the taxes paid to CA on the income taxed by both states. The credit prevents double taxation, which is prohibited by federal law.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.