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February 29, 2024
Question

Oregon Taxes Deduction for Self Employment Tax Question

  • February 29, 2024
  • 1 reply
  • 0 views

Hello,

 

I cannot follow what I am supposed to do for this portion of the Oregon state return.  One of the boxes states: "Deduction for Self Employment Tax." In the federal box, is $564. It asks me to enter an amount in the Oregon box. I worked and earned small business income for 4 months in Oregon, and then moved out of Oregon, where I earned the rest of my small business income in Washington for an additional 4 months. I wasn't earning from Oregon at that point. How do I figure this number? I am getting confused by the language "non-resident" in the help box. Please advise. Thanks.

    1 reply

    AmyC
    Employee
    March 1, 2024

    OR wants you to enter the percentage applicable to the OR earnings. For example, say you earned $10,000 in OR and $15,000 in WA. You take the OR income and divide by the total, then multiply time SE tax. Thus, 10,000 divided by 25,000 times $564 SE tax which is 0.4 x 564 =$225.60

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