topic Live in Washington and work part of the time in Oregon in State tax filing

Live in Washington and work part of the time in Oregon

rwturner — Tue, 10 Feb 2026 09:44:38 GMT

I am trying to figure out how I treat some of my income. I live in WA state, and commute to OR one day a week, and work from home the other 4 days a week. I know that I pay Oregon tax for the days that I work in Oregon but not for the days I work in Washington. My question is around lump sum bonus income. To make it more complicated, my 2023 annual bonus was for work done in 2022. I changed from fully remote to this 1-day-a-week in Oregon halfway through the year, so for simplicity sake, I worked "in Oregon" 10% of 2022 and 20% of 2023. Do I:

Pay Oregon tax on my bonus based on my 2022 "days worked in Oregon" because that's when I "earned" my bonus - 10%
Pay Oregon tax on my bonus based on my 2023 "days worked in Oregon" because that's when my bonus was paid - 20%
Not pay Oregon tax because I live in WA

Re: Live in Washington and work part of the time in Oregon

Hal_Al — Mon, 22 Jan 2024 13:42:00 GMT

Pay Oregon tax on your bonus based on your 2022 "days worked in Oregon" because that's when you "earned" your bonus - 10%.

Re: Live in Washington and work part of the time in Oregon

rwturner — Mon, 22 Jan 2024 19:48:16 GMT

Thank you.

On a similar note, I have a question around Restricted Stock Units.

Granted an RSU worth $10k

At distribution date 1 yr later, it is now worth $12k

Is the whole $12k subject to the "days worked in Oregon" breakdown, or just the $10k value when it was granted?

Re: Live in Washington and work part of the time in Oregon

Hal_Al — Mon, 22 Jan 2024 19:51:49 GMT

You may want to post that as a new question, to get more eyes on it.

Re: Live in Washington and work part of the time in Oregon

DavidD66 — Thu, 25 Jan 2024 23:13:26 GMT

It is the value at the time it vests, which in your example is $12,000. That is the amount that will be included in your wages and reported on your W-2 in box 1. RSU awards have no real value unless and until they vest, at which time they value of the RSU is considered earned income. Similarly if the value of the RSU dropped to $8,000, that is the amount that would be included in your wages, and is also the amount that would be used to calculate the percentage that is taxable by Oregon.