In my amended return I added a CA w2 that was for less than 2500 dollars. My initial return was done in OR. Now it says I owe state taxes in OR that I didnt before. Why?

[trentlopez2121]

My initial tax return was done for a job that was on an Oregon W2. I got a refund from the federal and state taxes on that. I then received a W2 from the Job I worked in CA after moving last year and it was only for around 2000 dollars in income. Now it is saying that I owe 100 dollers in oregon state taxes? why is this?

[DavidD66]

You said you moved to California. Did you file a California part-year resident return and change your Oregon return to part year?  If not, Oregon will treat all income as taxable, regardless of where it was earned.  You have to allocate your income to each state in the state tax sections of the return.  

[trentlopez2121]

Yes both state returns are filed as part time resident. The Oregon income was filed and accepted. The California income was added on my amended return. Now I owe money in Oregon. Two separate W2s as a part time resident in each state. Now the Oregon state taxes are saying I owe even though it was fully filed and accepted and no more earned income from Oregon was added in the amended return. 

[AmyC]

The issue is the way OR taxes you. OR looks at total income from everywhere for the whole year and creates a tax liability. Then it allocates the tax based on the % earned in OR.

In your case, your entire income went up to raise the tax bill even though your percentage of income in OR dropped. You may need to do an amended OR.   

How to tell:  save your OR return and select to do an amended OR and go through it to see if your decreased percentage will outweigh the increase to income. Otherwise, you may well OR some additional tax.

The federal and states share information so it isn't worth being hit with a penalty and interest in a few years for the discrepancy.