Oregon State tax

[bmshah1]

Both me and my wife live in WA state. I physically go to work in OR every day. There are some days when I do work remotely from my home in WA. I was told by some friends that for the days I work remotely from my home in WA state I don't pay OR tax specifically for those days. I have two questions:

1. How can I claim a refund in my OR taxes for the days that I worked remotely from my home in WA state?

2. What proof would I need to have to get a reduction in taxes for OR for days that I worked remotely?

3. I get paid vacation days from my employer. Can I claim a deduction for the days that I was on vacation? 

[TomD8]

Your friends are correct.  Oregon taxes non-residents only on Oregon-source income.  Work income is "sourced" where the work is actually (physically) performed.  So Oregon does not tax the portion of your work income that you earn from work you perform in a location outside Oregon.

On your non-resident OR tax return, you would allocate to OR only the portion of your income attributable to work you performed inside Oregon.

If you've already submitted your OR return, and if it's been accepted, you can correct it (if necessary) by filing an amended OR return.

[DMarkM1]

As @TomD8 states, OR only taxes income earned while physically working in OR.  In the OR state interview "Edit" the Income section.  You will be asked to enter the amount of wages that should be allocated to OR.  

Using your OR box 16 amount divide it by the total number of working days in the year.  For 2022 that is 250 which excludes weekends/holidays but still includes your paid vacation days as it should (the more working days the smaller the per day amount will be).  That will yield your pay per day. 

Now multiply by the number of days you actually worked in OR to arrive at the OR allocation to enter in OR allocation box.  

There is no supporting documents required just be sure to keep a record of how you arrived at your allocation including the number of days worked in OR.   

[bmshah1]

Hello @DMarkM1,

Thank you for your detailed response. To determine the number of days worked in OR can I deduct the vacation or sick days from the total number of days worked in OR?

[JulieS]

Yes, you can exclude vacation and sick days from your count. You don't have to count any day that you did not physically go to work in Oregon as a day worked in Oregon.