Getting Oregon tax back when living in Washington (Vancouver: sales, rental)

[zillaby]

Simple as the subject... can it be done? I've heard both ways, but never seen any proof to either side. I live in Vancouver, work in PDX, and get raped by Oregon Taxes. Is there something extra I can do at filing time to get those Oregon taxes back?

[RodFarlee]

To get them all back, no. What you do in Oregon (earn income) is subject to Oregon law (state income tax).

However, the most underutilized way of minimizing both state and federal income taxes is to contribute the maximum allowed into your 401k retirement savings account. These contributions are deductable from your income, its earning are tax deferred, and when you withdraw it as a Washington resident, it will not be subject to Oregon income tax.

[RodFarlee]

Postscript: Oregon taxes nonresidents only on income from Oregon sources for services performed in Oregon.

If you have a home office outside of Oregon, or are sent out of Oregon on work (e.g. as a sales representative, or to out-of-state meetings), the pay you received for working outside of Oregon is not subject to Oregon income tax. Add up the total number of days, and use it in the calculation of your "Oregon income" reported on form 40N line 8. Note that vacation, holiday and sick pay cannot be counted.

See the formula in Oregon Individual Income Tax Guide, Publication 17 1/2, "Wages, Salaries and other pay for work" on page 43.
http://www.oregon.gov/DOR/PERTAX/doc...101-431-05.pdf

This can help a lot. For example, I had a friend who was regional sales representative for a company in Portland, and lived in Vancouver. He was in the office in Oregon only 1 day every week or two, and had to pay Oregon income tax for that day's pay. The rest of the time, he was on the road or working out of his home office, and wasn't paying Oregon income tax.

[sk123usa]

Will I have to pay Oregon income taxes if I work at the VA in Vancouver (which is a part of Portland VA hospital system) and also live in Vancouver?
Any help wil be greatly appreciated.

[st33lcas3]

Originally Posted by zillaby

Simple as the subject... can it be done? I've heard both ways, but never seen any proof to either side. I live in Vancouver, work in PDX, and get raped by Oregon Taxes. Is there something extra I can do at filing time to get those Oregon taxes back?

You'll be lucky to get 10% back.

Originally Posted by sk123usa

Will I have to pay Oregon income taxes if I work at the VA in Vancouver (which is a part of Portland VA hospital system) and also live in Vancouver?

No. The only time you pay Oregon tax is when you physically work in Oregon.

[sk123usa]

Originally Posted by st33lcas3

You'll be lucky to get 10% back.



No. The only time you pay Oregon tax is when you physically work in Oregon.

Thanks for your reply!

[akashanrg]

I live in Oregon, but work in Vancouver, WA. This has been a recent change as of this past January. I realize WA. does not have any state tax, but I also noticed my company is not deducting Oregon tax from my checks either. I thought I was still required to pay Oregon tax as a resident even if my work is out of state. Question is: Should the company I work for in WA. automatically be deducting Oregon State tax from my paychecks? If not, will I owe Oregon tax at the end of every year?

[SeattlitefromNC]

Originally Posted by akashanrg

I live in Oregon, but work in Vancouver, WA. This has been a recent change as of this past January. I realize WA. does not have any state tax, but I also noticed my company is not deducting Oregon tax from my checks either. I thought I was still required to pay Oregon tax as a resident even if my work is out of state. Question is: Should the company I work for in WA. automatically be deducting Oregon State tax from my paychecks? If not, will I owe Oregon tax at the end of every year?

From here: Department of Revenue: Personal Income Tax Assistance and Common Questions

I am moving into Oregon. What income will be taxed by Oregon?

As an Oregon resident, you are taxed on ALL income regardless of the source of the income. This includes, but is not limited to:

1. Wages;
2. Interest and dividends;
3. Retirement income, even if earned prior to moving to Oregon;
4. Rental income;
5. Partnership and S-Corporation income;
6. Business income;
7. Unemployment benefits.


You may need to pay estimated taxes if you don't have Oregon withholding on your income.

So, by virtue of you being an Oregon resident, you will have to pay Oregon taxes on your income. Your employer is not required to withhold these taxes, as they are based in Washington. However, you can go to your employer and reconfigure your withholding to anticipate the eventual tax bill.

[deborickj]

My entire working life has been as an Oregon State employee. We are thinking of moving to Washington state to retire. As a Washington resident, would I be paying income tax on my Oregon PERS?

[SeattlitefromNC]

Washington state has no income tax.