Thursday, June 21, 2012

Why pay Oregon income taxes if you live in Washington


Why pay Oregon income taxes if you live in Washington?
We live in Washington but work across the river in Oregon. Oregon makes me pay Oregon income taxes but we do not get to vote in Oregon, we have no say in how their schools are run and even though we pay Oregon taxes, we get no "kicker' check (which can be close to $1,000 for some people) because we don't LIVE in Oregon. Isn't this taxation without representation? How is it legal? Thank you all in advance for your thoughtful answers.
United States - 4 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Congress has the power to regulate interstate business and it has decided you get to pay Oregon taxes because you work in Oregon. I know it seems unfair. you have the right to peaceably assemble and petition the government for a redress of your grievances. Write your CongressPerson.
2 :
That's tough. We have a similar situation here in Ohio. We live in one city, and my wife works in another and has to pay a higher city tax, which we don't get any credit for or against. 2% in the city we live. 2 1/2% where she works, for their schools and such. But we can't vote for their tax increases even though it affects us. Not sure why your situation requires you to pay out of state tax. Ask your tax man, or finicial advisor.
3 :
You have income derived from an Oregon source, so you need to pay them their tax. Working in their state qualifies you to pay their tax. Every state will be the same. If you have income derived from a source in their state (A K-1 from a partnership or an Scorp, or a job in their state, etc.), you will be paying them tax. As an example, a friend of mine works in Illinois, but had to work 3 months in Alabama for our firm. He had to file an Alabama income tax return for the money he recieved while working in Alabama. It's not fun, but, sadly, it's the law. Good question. Let me know if this is not clear enough. Hope this helps.
4 :
You pay taxes in Oregon and file state taxes with both states. You should get your money back at the end of the year form Oregon and then have to pay Washington the taxes for where you live. The is just how it is.