I am a permanent resident of Alabama and have lived and worked in Oregon all year long (for school) and I only earned income in Oregon, do I need to file Alabama taxes?

[kthrynthegreat]

I don’t own property in Alabama. My permanent address is my parents’ home. I intend to return to Alabama after I graduate school in Oregon. Since I live in OR year-round, I only generate income in OR. Do I file taxes in both places?

[DanielV01 · Accepted solution]

Yes, you will file both returns.  When you are in school, this is considered a temporary residence that does not change your actual residency.  You remain an Alabama resident, which means that Alabama may tax all of your income, and Oregon will tax income you earned there because they will tax income earned by a nonresident in their state.  You will file as a nonresident because of how Oregon defines a resident, as shown at this website:  

Oregon Department of Revenue : Individuals : What form do I use?

As you will notice, your intention is to continue to live in Alabama.  Since this is the case, your stay in school (temporary absence from your home) does not change your residency as far as Oregon is concerned.  

Because of this, you will want to prepare the Oregon return first.  While Alabama also may tax you, you will receive a credit for tax you pay to Oregon on that income.  It is possible that you will not have a tax due to Alabama, but even if that's the case, you will still be required to file the return there.