I live in Washington and work in Oregon. My husband had a taxable distribution from a pension that he earned in Washington. Do I claim this as income in Oregon?

[BkWormBear]

I live in Washington and work in Oregon. My husband had a taxable distribution for early withdrawal from a pension which he earned working in Washington. The TurboTax question says I must meet any of the following criteria in order to avoid Oregon taxing the distribution: it was taxed by another state, was invested in U.S. Government bonds, was earned via federal service prior to 1991. None of these are met, but Washington doesn't have an income state tax, so if it did I would have paid income state tax. For that criteria, you have to have earned it as a nonresident (check), paid state tax on the contributions in the state of residence (there were none), and not have received a tax benefit (check). So my question is if it was earned in Washington and distributed in Washington, is it still taxable in Oregon? It wouldn't make sense for it to be, but I am not certain based on the given criteria.

[CarolynM · Accepted solution]

No, his pension not taxable to Oregon. 

On your Oregon Non-Resident Income Tax Return, you only report income from an Oregon source, which this in not.

For more information, follow this link: OR Filing Requirements

[BkWormBear]

Thanks! That was what I was leaning towards but didn't see anything explicitly referencing this particular situation in the TurboTax checkbox aid. You are awesome!