Q. Do I file a state return for both states?
A. Yes.
Q. If so, prepare the New Mexico tax return first, then Oregon?
A. Yes. OR will give you a credit, or partial credit, for the tax paid to NM. So the NM tax needs to be calculated 1st.
Caveat: My answer is based on the standard rule for almost all states. I am not specifically familiar with OR & NM.
