Do I include my husband 401k withdrawal in OR taxes? We live in WA state.I work and file OR-40-N(part-year).He is on SS benefits.Should we file separate?

[rlavaran]

If we have to pay OR tax on the 401k withdrawal, will my opening an IRA account offset the tax we have to pay, therefore, no tax due?

[CarolynM · Accepted solution]

No, this is income attributable only to WA. You can still file jointly with only your Oregon income reported on OR 40-N. 

For more information on OR-40-N, follow this link: 

http://www.oregon.gov/DOR/forms/FormsPubs/publication-or-40-np_101-045_2017.pdf