59349
(Sale of a residence) Being a non resident I had to file a pay an large estimated tax. Am I entitled to a refund on any of that amount by filing and if so, which form. Thank You.
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Yes, you can file for an Oregon tax refund as a nonresident.
When an Oregon resident sells their Oregon home, vacation home, or other real property, they are generally exempt from real estate tax withholding via Form WC, by virtue of being Oregon residents.
If I understand your question correctly, you are an Oregon nonresident, and the real property you sold is not your primary residence (which would make you an Oregon resident). In other words, as an Oregon nonresident you sold a vacation home or a rental property, correct? If so, then you want to fill out Oregon Form OR-40-N (nonresident state tax return) to report the sale there as Oregon-source income. You can then apply any tax withheld from Form WC to your Oregon tax liability, if any. The remainder of the amount withheld, over and above your Oregon tax liability, is a tax refund.
(The wonky accounting answer here is that your real estate transaction withholding tax is considered an estimated tax payment from a real estate transaction, and should be appear on Form OR-40-N, Line 59.) Don't worry though, if you follow the TurboTax program interview carefully, the program will handle the actual mechanics of this for you. Make sure in TurboTax to answer the questions about paying any "estimated taxes" to a state, make that state Oregon, and use the dollar amount and date shown on your Form WC for the state estimated tax input fields.
In addition, if you are a resident of another state that has an income tax, and you had to report the sale of your Oregon property there (which you would have, if that information transferred over automatically from your TurboTax federal return), then you will be entitled to a state tax credit in your own state for taxes paid to Oregon on that same capital gain income. For federal income tax purposes, you will report the sale under Schedule D and Form 8949 (found under Investments and other 1099-B sales in TurboTax).
Thus, you really need to complete your federal return first, and input the property sale there. Second, you will complete Oregon Form 40N (nonresident return), reporting at least this one item of Oregon income along with any other Oregon items, and indicate to the TurboTax program that yes, you did pay estimated Oregon income taxes (from Form WC). Third, you will complete the tax return for your resident home state, and take a credit there for any taxes paid to Oregon. The exception to steps # 2 and # 3 is if you are a resident of Arizona, California, Indiana, or Virginia. In that instance you will reverse the ordering of steps # 2 and # 3 (for example, do your California return before Oregon, and then return to the California tax section after you have the state tax figures from your Oregon return).
If this all becomes too overwhelming, or you feel that you need further guidance, please feel free to contact us and speak to a live agent.
https://support.turbotax.intuit.com/contact/
See also the following Oregon tax form for reference:
https://www.oregon.gov/DOR/forms/FormsPubs/form-or-18-wc-tpv-18_101-183_2016.pdf
Thanks for asking this interesting question, and good luck to you!
Regards
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