My wife works and lives in Portland, Oregon (Oregon resident). I works and lives in Washington (Washington resident). I have zero Oregon income. Recently I got mail notice asking me to pay Oregon state tax for all my Washington income. That sounds absurd --- I feel that I should not pay ANY Oregon tax. I called them and someone then told me I need pay Oregon state tax for 50% of my Washington income, due to some law between Oregon and Washington. Question: Do I really need to pay the Oregon tax? If so, is it 50% percent? Thank you for the guidance/advice. My wife and I filed Federal Return together, and State Tax return seperately. My company in Washington is >$200 miles from Portland. Sorry it is hard to locate a job in Portland. We filed state tax seperately. My wife is Oregon resident. I am Washington resident. I moved from Michigan to Washington, since i can not find a job in Portland.
United States - 4 Answers
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1 :
Dear B:: Multiple states are not easy to file as there are many different scenarios. In your case it looks like if you file MFJ (Jointly) you will have to allocate the income between OR and WA. Your income taxed in WA and hers in OR. I would get advice from a tax pro who lives near you and has experience with the OR/WA issue. Another way to do it is to file MFS for each state if that is permitted by law. Also some states allow a credit for taxes paid to another state. It is unusual for your spouse to live in another state, that complicates the issue also. You should not have any tax liability to OR. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
2 :
You live and work in Washington, a community property state with no state income tax. Your wife lives and works in Oregon, a seperate property state with state income tax. If you and your wife are a community and you file jointly (married filing jointly) half of your Washington community property income is you wife's. That half is taxable to her state of residance. There may be some tax relief between Washingtion and Oregon. You should consult a tax professional, such as an EA, who has experience with both states.
3 :
Yes need a tax expert. I have the same issues. Not a simple answer. We file married but separate, but we have other issues also. Typically you take ALL the family income. Then come up with a percent of time in Oregon and multiply all the income by that for oregon.... But as I said, not quite that simple. If you wife lived in Washington, then only her income would be subject to Oregon tax. Sounds like they are saying YOU are also an Oregon resident.
4 :
your 'tax home' is where you work, and for your wife, there is no question, but for you, your 'tax home' is Washington filing jointly is probably causing you this problem, therefore you probably should file separately
