Last year I was able to use Turbo Tax for this but this year it seems impossible. What's the proper way to do it. Any advice would be appreciated.
Here is my current State tax situation:
- In 2023 I moved permanently to HI so this is my second year of going through this scenario
- I live in HI and work 100% remotely for a company in OR state
- My company on OR does not withdraw any state taxes (neither OR or HI)
- I pay estimated taxes in HI every quarter
- My W2 from my company in OR shows State wages in box 16, however it shows nothing in State income tax box 17
- There is no HI state listed on my W2
- It seems there is no way to manually enter the estimated taxes I paid in HI state
Turbo Tax and State tax implications
- Federal just works as it should
- In Turbo Tax I entered 2 states; OR - nonresident, HI - resident
- I process ny OR (nonresident) state first
- Torbo Tax takes the information from box 16 and uses it as my Wages
- All other Oregon Source of Income are at 0
- I overwrite the income amount to show 0 which I think is proper way
- After few more screens the OR state is done
- Last year I had a letter from my employer stating that I do not have to pay OR taxes as I’m not an OR resident anymore. I did sent this letter together with my OR taxes for processing.
- I do have the same letter for this year
- Next I process my HI (resident tax)
- Since I set my OR (nonresident) wages to $0 the HI state return asks me the Income earned in OR (Which I entered $) and due to HI as well as taxes paid in OR (which I enter $0)
- Eventually after few pages I get to Underpayment Penalty which shows $ value stating I have to pay it as I underpay the HI taxes - which is actually not true as I paid estimated taxes
- That kind of concludes my HI tax but the process is not allowing me to enter my estimated payments for HI taxes
