Deductions & credits

You don’t get a credit. But you should only pay Oregon tax on income that you earn while you are living or working in Oregon.  You don’t pay Oregon tax on income earned while you are living in Washington, even if the company is based in Oregon.

 

You should be filing a non-resident Oregon return. TurboTax should detect from your address that you live in Washington and ask if you had income in other states. When you say yes, TurboTax should ask if you lived in the state or if you were a visitor or non-resident.  If you are a non-resident, then when you get to the Oregon State tax module (after entering all your federal information) TurboTax will ask you to manually allocate each type of income you received based on where you received it.  Bank interest or investment income is all Washington income because your permanent home is Washington. For your job, you will have to manually tell TurboTax what percentage of your salary was earned while you were living in Oregon.  You will have to perform this calculation yourself. Count the number of days that you lived or worked in Oregon and divided by the total number of days you worked in 2021 to get the correct percentage.

 

If you are paying Oregon tax on all your income and were not asked to allocate your income, then you have mistakenly prepared a return as if you were a full year Oregon resident. Delete your Oregon tax return and start over.

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