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New Member
posted Sep 28, 2024 11:52:38 AM

I live in WA, duty station is DC, work is performed in OR, but money isn't sourced from there. Who do I file my state taxes with?

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3 Replies
Level 15
Sep 28, 2024 12:33:15 PM

When you say "duty station" that indicates to me that you are active military.  If that is the case then you do not file a state return if your income is from the military since your Home of Record is Washington state which does not have a personal income tax.

 

If you are not active military then please reply back on this thread and provide more information.

New Member
Sep 28, 2024 12:42:14 PM

Sorry, not military. 

 

I work for USPS as a headquarters employee. My duty station, maybe better said as finance station, is DC.

 

I am domiciled in Portland, OR where I physically work the majority of the time.

 

I live across the state line in Washington.

 

I understand that working for an Oregon company and living in WA, that Oregon state taxes are still required.

 

I've read somewhere about the requirement of it being Oregon sourced income that requires the taxes for nonresidents.

 

 

Level 15
Sep 28, 2024 1:41:51 PM

Q. I understand that working for an Oregon company and living in WA, that Oregon state taxes are  required?

A. No.

Q. I understand that physically working in  Oregon (regardless of where the employer is domiciled or stationed)  and living in WA, that Oregon state taxes are  required?

A. Yes. 

The general rule is: your report all your income on your home state return, even the income is earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. You will have to file a non resident OR state return and pay OR tax on the income earned there.  Since WA does not have an income tax, you do not need to file a WA return. But, you get no credit for the income tax you pay to OR. If you itemize deductions on your federal return, you do get a deduction (not a credit) for any state income tax paid (with an upper limit)