Partial Year State Filing with Schedule C

[jhorak]

Ok - here is my situation. 

I originally lived in California my whole life. 

In December 2020, I moved to Oregon but hadn't yet decided if I would stay. So since I had no residency in Oregon (and still worked in CA), I filed California only.

Now it's 2021.

I technically lived in Oregon all year. However, I did not become a resident until Aug 2021.

I worked a CA Job from Jan 21 - Aug 21. I had CA residency. I got a w2, and plan to do this portion entirely with CA.

I then got an OR job from Oct 21 - Dec 21, and was an OR resident. That portion is obviously OR.

THE ISSUE is my side job. I do dog sitting with ROVER. Rover doesn't send 1099s, because they pay you through PayPal and have avoided doing that (thank god that isn't allowed anymore.) Because of this, I have to file a Schedule C for self-employment. Fine, whatever, at least I can claim my expenses.

How do I do this with my state taxes though?? Technically, all of the income was earned in Oregon. But I was technically a resident in California until August. Do I put all my income for Oregon, or do I split it based on the dates? My home office and mileage expenses and ETC is all in Oregon. 

It looks like buying the desktop version of Turbotax Home and Business doesn't come with 1:1 tax expert advice. So am hoping someone can help here. I don't want to accidentally pay 2 separate state taxes for the same income.

[ErnieS0]

Oregon taxes income earned in Oregon so the income from both of your jobs and your dog sitting is Oregon taxable income since you lived and earned money in Oregon the whole year.

Living in a state as a nonresident does not exempt you from paying tax on money earned while being physically present in a state.

Section 316.127 - Income of nonresident from Oregon sources

If you are filing a part-year Oregon return, include all income earned in Oregon while a nonresident. Since the income from your first job is also taxed by California, you can claim a credit on the CA return for tax paid to Oregon.

Similarly you will report part of your dog siting income to CA and all of it to OR and claim a credit on the CA return for the portion of income and tax reported to CA.

It seems easier to claim full year OR residency. You didn't explain why you became a resident in August. Simply changing a driver's license does not indicate the date when someone changes their residency. 

Factors such as the date for signing an apartment lease or working in another state are given more weight.