Question

Employer obligations for withholding state taxes

Forum|Forum|5 years ago
September 29, 2020
2 replies
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Does my employer have to deduct my resident state tax if I live in OR but commute to my work location in CA? My Employer does not have a work location in Oregon.

A

Anonymous

probably not. most states that have a withholding requirement require employers to register as a withholding agent. I doubt one state's requirement could be enforced on an employer who has no nexus with the other state.

T

TomD8

Employee

If your employer does not withhold OR income tax for you, you should make quarterly estimated tax payments to OR. This reference give the details on that:

https://www.oregon.gov/DOR/forms/FormsPubs/publication-or-estimate_101-026_2020.pdf

In your situation you will file a non-resident CA tax return in addition to your home state OR tax return. That's because the income you earn in CA is taxable by both states. You'll be able to take a credit on your CA tax return for the taxes you pay to OR on the income that is taxed by both states, so you won't be double-taxed. (CA and OR are "reverse credit" states, which means that the credit is given by the non-resident state.)

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