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State tax filing
Leaving aside the issue of whether or not you would owe tax in either Michigan or Oregon, let me address the common issue of apparent double taxation.
It is common for states to give credits to a taxpayer for an amount equal to taxes paid in another state on the same income. In your case, if you owed tax in both states, then you would enter your nonresident state (Michigan) first, then enter your resident state (Oregon).
TurboTax would calculate the tax (if any) from Michigan, and then bring this amount over to Schedule OR-ASC, Schedule E as a nonrefundable credit to Oregon. Thus, you would pay tax (if any) on this income to one state or the other.
This method of avoiding double taxation is fairly common among the states.
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‎April 6, 2023
7:05 PM
1,798 Views