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What tax an employee owes depends on what the W-2 says.
If the W-2 the employee receives in the mail in January says that income was earned in Oregon, then the W-2 should also state what Oregon income tax was withheld.
If no Oregon income tax was withheld, but the income was earned in Oregon (proven by the address of the employer, as that address appears on the W-2), then the employee must calculate how much Oregon income tax is due, and must file an individual Oregon income tax return and pay that amount when filing the Oregon return.
Income earned in Washington state, therefore from Washington state employers, when the employee is a resident of Washington state, is not taxable by Washington state or by any other state.
Income earned in Washington state, therefore from Washington state employers, when the employee is not a resident of Washington state, is not taxable by Washington state but may be taxable by the state in which the employee is a resident.
It's a good idea for him to gather together all his income info for the year, and go to H&R Block or another tax CPA specialist, to make certain he is adhering to the various states' requirements and the IRS requirements, and not overpaying taxes.
Professional sports players go through this all the time, as do musicians who play in various states, sports game broadcasters, and others whose income is earned in more than one state. When that happens, the employee must adhere to each set of requirements of each state in which the income is earned.
Last edited by allforcats; 10-10-2008 at 09:47 PM..
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