Issue with joint filing a partial year resident on a state return

CUSkier — Sun, 29 Mar 2020 00:37:43 GMT

While filing my 2019 returns on TurboTax Premier I found an issue with the program not choosing the right type of state form to file given the information input. I got married this year and am filing jointly. My spouse moved to Oregon (has income tax) part-way through the year from Washington (does not have income tax). Although I provided this information including the move date for my spouse when setting up my returns in TurboTax, TurboTax incorrectly ran my state taxes using Form OR-40 instead of Form OR-40P.

From Oregon's 2019 Income Tax Instrctions OR-40-FY:

Use Form OR-40 if you’re a full-year Oregon resident.
Use Form OR-40-P if any ONE of the following is true:
• You’re filing jointly and one of you is a full-year Oregon resident and the other is a part-year resident.

I fortunately caught this issue during my final review of the downloaded pdf before filing and went and manually switched the state tax form used. The tax liability difference was over $4,400. I'm not sure if this is a systemic issue for couples filing jointly with one partial year resident, or if it's specific to Oregon state returns, or if it is somehow isolated to just the way my information was entered, but it's something to closely double check if this situation is applicable to you!

Re: Issue with joint filing a partial year resident on a state return

JohnB5677 — Mon, 30 Mar 2020 21:56:35 GMT

When you were putting in your PERSONAL INFO, did you indicate that your spouse lived in another state. That would have triggered the residency questions.

Re: Issue with joint filing a partial year resident on a state return

CUSkier — Wed, 01 Apr 2020 02:46:23 GMT

Yes, that was included when I entered our personal information when starting our tax return. I was asked the relevant residency questions and entered all of that information including the move date between the two states.

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Issue with joint filing a partial year resident on a state return

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Re: Issue with joint filing a partial year resident on a state return