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Level 2
posted Mar 25, 2020 10:28:00 AM

I freelance, live in CA and telecommute for a biz in OR. Why is my return showing refund in CA & asking for OR return?

Shouldn't my income be taxed in CA? Did I accidentally click something making it exempt?

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7 Replies
Expert Alumni
Mar 25, 2020 11:34:59 AM

Based on what you said, all of your income should be taxed in California. 

  • Is there any reference to Oregon on your W-2 Box 15?  
  • Did you include Oregon when you selected your states?

Level 2
Mar 25, 2020 11:41:57 AM

@JohnB5677 - Thanks for your reply! I don't get a W-2, but I do see OR noted in boxes 17 & 18 of my 1099. Apparently from what I've been reading that makes it taxable in OR, but I'll also get a refund from CA which will help offset it.

 

When you say did I include OR when I selected my states, do you mean separate state returns? So far I've only selected a CA return.

Expert Alumni
Mar 25, 2020 12:02:06 PM

If you are Self-Employed and your income is reported on Schedule C, you don't need to file an Oregon return. 

 

All your income is considered to be earned from your Home Office in your Resident State.  You did not actually work in Oregon. 

 

Click this link for more info on Telecommuting from Another State. 

 

 

 

Level 2
Mar 25, 2020 12:42:56 PM

That's what I thought too, which is why I'm confused that the TurboTax return is showing a refund for CA and advising me to file OR. I should actually owe in CA if that's the case and I'm not sure how to fix it. I talked with a TurboTax rep and she said to file OR as well as CA. I'm really confused.

Level 2
Mar 25, 2020 12:44:54 PM

How do I get the program to add the income to CA since the payer added it to my 1099 or OR?

Expert Alumni
Mar 25, 2020 3:07:49 PM

Try Deleting Oregon if it has been added to your TurboTax.

 

Then Delete California, add it again, and go through the CA interview.

 

Since your income is not on a W-2, TurboTax may not add it automatically to your CA return. 

 

You may need to manually enter the amount when asked for 'California Income'.

 

Click this link for info on How to Delete a State. 

 

Level 2
Mar 28, 2020 7:15:28 AM

I'll give that a try. Thanks!