OR has a law stating that as a military spouse (OR resident), working outside the state I do not have to file or pay state income tax. How can I process this in TurboTax?

enoxford · ‎June 4, 2019

-I am a permanent resident of OR and have been since birth, as is my husband
-He is active duty military stationed in CA for the entire year of 2018
-I lived with him and paid CA state tax on my income (which I am filing to get back, per CA law)
-OR has a guideline stating that I do not have to file taxes https://www.oregon.gov/DOR/programs/individuals/Pages/military.aspx

In trying to file state tax for my husband in OR, the system is claiming we owe, despite both of us being exempt. How do I resolve this? Do we even need to file OR? My husband is an OR resident but they do not tax active duty military, so he does not have any state tax withheld on his W2.

Cindy0H · ‎June 4, 2019

You will not need to file in Oregon according to this page about the military:

Residents stationed outside Oregon

You're a nonresident for Oregon tax purposes if you meet all of the following requirements:

You didn't have a permanent residence in Oregon for yourself or your family during any part of the tax year.
Your permanent residence was outside Oregon during the entire tax year.
You spend less than 31 days in Oregon during the tax year.

You'll only owe Oregon tax if you had income from other Oregon sources. If you have to file a return, use Oregon Form OR-40-N.

Full text from Oregon:

https://www.oregon.gov/DOR/programs/individuals/Pages/military.aspx

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