topic Moved but still working remotely in State tax filing

Moved but still working remotely

jmk53 — Mon, 18 Jan 2021 06:42:26 GMT

I moved to another state (OR) but I am still working full-time virtually in the original state (MN). I know I can file as a part-year resident for MN, but do I file the state taxes for Oregon too? Is there a part-year option for Oregon?

Re: Moved but still working remotely

DJS — Mon, 18 Jan 2021 15:08:18 GMT

This may answer your question: https://secure.sos.state.or.us/oard/viewSingleRule.action?ruleVrsnRsn=20171#:~:text=(a)%20Residents%3A%20An%20Oregon,does%20not%20allow%20the%20credit.

Credit for Income Taxes Paid to Another State — Computation

(1) General: This rule explains the computation of the credit for taxes paid to another state on mutually taxed income.

(a) Residents: An Oregon resident is allowed a credit for taxes paid to another state on mutually taxed income if the other state does not allow the credit. See section (3) of this rule for information on calculating the credit for an Oregon resident.

Example 1: Bob, an Oregon resident, receives partnership income derived from Virginia sources and joins in a multiple nonresident filing with that state. If Virginia does not allow a credit for taxes paid to Oregon on the multiple nonresident tax return, then Bob may claim a credit on the Oregon resident return.

Re: Moved but still working remotely

TomD8 — Mon, 18 Jan 2021 16:15:09 GMT

You must file a part-year resident return in each of the two states. Your income prior to your move is entirely taxable by MN; your income after becoming an OR resident is entirely taxable by OR.

You became an OR resident on the day you began living in your new permanent home in OR.

There is no "other state credit" in your situation, because MN does not tax non-resident remote workers.

If they are not already doing so, you should ask your MN employer to withhold OR taxes (and to cease withholding MN taxes). If your employer is unable to do so, you should start making quarterly estimated tax payments to OR, to avoid any year-end underpayment penalties or interest.

This explains how to file part-year resident returns in TT: How do I file a part-year state return? (intuit.com)