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Dunkmode
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I live in Oregon and work remote for an Idaho company, do i need a w-4 for Idaho?

like the subject says, I live and work in Oregon, but for an Idaho company. Who's getting my tax money? to be honest i would rather pay Idaho because of the lower tax rate, but i want to make sure i'm not screwing anything up. 

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I live in Oregon and work remote for an Idaho company, do i need a w-4 for Idaho?

No, you are taxed on ALL your income from everywhere by the state you live in.

Even if you did pay ID lower taxes first, OR would get to collect the difference if the OR taxes were higher.

 

If you do not physically work in ID. then you should only have OR taxes withheld.

Occasionally, an out-of-state employer (for a remote employee) cannot withhold taxes for the state you live in...and in that case, you'd have to pay quarterly estimated taxes to your home state to approximate what you'd eventually owe to OR.

______

If you physically worked in ID, then you would have to pay ID taxes, and file an ID non-resident tax return.  Then OR would still calculate a tax for ALL your yearly income on their OR Resident tax return, including the ID amounts, but would allow you a credit for the taxes that you had to pay to ID (at least up-to the amount that OR would-have charged).....

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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1 Reply

I live in Oregon and work remote for an Idaho company, do i need a w-4 for Idaho?

No, you are taxed on ALL your income from everywhere by the state you live in.

Even if you did pay ID lower taxes first, OR would get to collect the difference if the OR taxes were higher.

 

If you do not physically work in ID. then you should only have OR taxes withheld.

Occasionally, an out-of-state employer (for a remote employee) cannot withhold taxes for the state you live in...and in that case, you'd have to pay quarterly estimated taxes to your home state to approximate what you'd eventually owe to OR.

______

If you physically worked in ID, then you would have to pay ID taxes, and file an ID non-resident tax return.  Then OR would still calculate a tax for ALL your yearly income on their OR Resident tax return, including the ID amounts, but would allow you a credit for the taxes that you had to pay to ID (at least up-to the amount that OR would-have charged).....

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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