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August 2, 2019
Question

live in florida work remotely for oregon-based company

  • August 2, 2019
  • 3 replies
  • 0 views

I live in Florida but will be working remotely (telecommuting) for an Oregon-based company.  I am told that I will be taxed based on Oregon taxing system which means I will be paying Oregon state taxes.  Will I get 100% of those Oregon state-paid taxes back when I file my return?

    3 replies

    DoninGA
    Employee
    August 2, 2019

    If your Oregon based employer is withholding state income taxes from your wages and you do not live or work in Oregon then you can file a nonresident Oregon state income tax return and get a refund of the state taxes withheld.

    However, there should be no reason for the employer to withhold state taxes on your wages if you are not performing any type of services in Oregon.

    tlucas33Author
    August 2, 2019

    Yes I will be performing work with clients in Oregon.  The clients will go to the clinic in Oregon and complete their assessments with me via video conferencing.  I will be in Florida, where I live, performing the work.  So essentially I work in Oregon but telecommute from Florida.

    DoninGA
    Employee
    August 2, 2019

    If you are not physically present in Oregon while assisting a client I do not see how that would be applicable to actually working in Oregon where your wages would be subject to state income taxes.

    August 2, 2019

    https://www.oregon.gov/DOR/forms/FormsPubs/publication-or-40-np_101-045_2018.pdf

     

    Nonresidents. Oregon taxes only your income from Oregon sources.

    Oregon income includes income shown on your federal return for services PERFORMED in Oregon.

    Oregon sources of income (and losses) include:
    • Businesses, partnerships, limited liability companies taxed as partnerships, and S corporations located or
    doing business in Oregon or providing services to Oregonians.
    • Unemployment compensation received because of an Oregon job.
    • Severance pay received because of an Oregon job.
    • Farms located in Oregon.
    • Estates and trusts in Oregon or that have Oregon property or businesses.
    • Oregon State Lottery.
    • Sale of Oregon property.
    • Rents and royalties for use of Oregon property.

     

    what you do is not Oregon source income. so I agree with others your employer should not be withholding Oregon taxes.  maybe you can get back what was already withheld.  Talk to your employer or the payroll department.   If they won't do this, you'll need to file an Oregon non resident return to get back the withholding.  Warning.  they seem confused on the law so they they might file a W-2 with the state that shows your wages as Oregon wages.  if so Oregon will not refund the withholding.    you need to take steps now to see that this doesn't happen.   if they won't do anything, contact the Oregon department of revenue now to see if anything can be done.  

     

    other warning.  taking action may annoy your employer to the extent they no longer want your services.   

     

    Phone: (503) 378-4988 or (800) 356-4222
    Asistencia disponible en español
    Fax: (503) 945-8738
    TTY: (800) 886-7204
    Email: questions.dor@oregon.gov
    Open 7:30 a.m. to 5 p.m. Monday-Friday. Phones lines are closed 9 to 11 a.m. Thursdays and on holidays.

    Employee
    August 3, 2019

    @12309  It is correct that, if your employer does withhold Oregon taxes, you'll have to file a non-resident Oregon tax return at years end, showing zero Oregon income, in order to have those taxes refunded.  If this becomes necessary, I suggest you file the Oregon return on paper, along with a note explaining that you work remotely from another state, and that you actually never set foot in the state of Oregon.

     

     

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
    tlucas33Author
    February 27, 2021

    I think this is the correct answer...I am doing taxes on Turbo Tax just to give me an idea of what my return looks like and when I changed my income to $0 in Oregon, it gives me back my state taxes that were withheld...thank you SO much!!!  I will file on paper with a note as suggested!

    August 25, 2023

    Oregon does not tax telecommuters for services performed outside of OR. If you live outside of OR and perform services in FL, then you need to file "exempt" on the OR-W-4 to stop your employer from OR withholding. 

     

    Note for non-residents who telecommuteOregon taxes the income you earned while working in Oregon. Generally, Oregon doesn’t tax any amount you earned while you were performing services outside Oregon. Nonresident telecommuters who work for an Oregon employer are taxed on the income earned from services performed in Oregon, including a portion sick pay or other benefits.  

    Oregon Department of Revenue : What form do I use? : Individuals : State of Oregon