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dbrown
New Member

I lived in Washington state for 7.5 months and in Oregon for 5.5 months in 2016, but my wife lived solely in Washington state. Does TurboTax handle this situation?

Since she did not live in Oregon during any part of the year, would her income be taxable in Oregon?
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GeoffreyG
New Member

I lived in Washington state for 7.5 months and in Oregon for 5.5 months in 2016, but my wife lived solely in Washington state. Does TurboTax handle this situation?

In your particular situation, where you and your spouse have different state residencies, you have (2) choices on how to file your Oregon state tax return.  Both are equally valid; but each may result in a different Oregon tax refund (or liability), because the calculations are necessarily different.

First, you can simply file a joint federal income tax return, and a joint Oregon part-year resident return.  Because of the way that Oregon calculates state tax returns for part-year and nonresidents, however, your spouse's Washington income will be included on such an Oregon part-year return, although it is not taxed directly (rather it is a factor used to calculate your "Oregon percentage" that is then applied to your overall taxable federal income).  While that may result in a higher level of Oregon taxes, it's the easiest filing option from an administrative perspective.

Second, you can file a joint federal income tax return (or separate federal tax returns if you like), and then file as Married Filing Separately for Oregon (only).  The somewhat complicated process for doing so is described at the following TurboTax webpage:

https://ttlc.intuit.com/questions/1901214-how-do-i-prepare-a-joint-federal-return-and-separate-state...


Both methods are supported in the TurboTax family, although you will certainly find the second option much easier to do, mechanically speaking, in TurboTax desktop software, rather than TurboTax online.

Finally, since Washington state has no personal income tax system, you don't have be concerned about filing any tax return in Washington at all.

Thank you for asking this question.

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1 Reply
GeoffreyG
New Member

I lived in Washington state for 7.5 months and in Oregon for 5.5 months in 2016, but my wife lived solely in Washington state. Does TurboTax handle this situation?

In your particular situation, where you and your spouse have different state residencies, you have (2) choices on how to file your Oregon state tax return.  Both are equally valid; but each may result in a different Oregon tax refund (or liability), because the calculations are necessarily different.

First, you can simply file a joint federal income tax return, and a joint Oregon part-year resident return.  Because of the way that Oregon calculates state tax returns for part-year and nonresidents, however, your spouse's Washington income will be included on such an Oregon part-year return, although it is not taxed directly (rather it is a factor used to calculate your "Oregon percentage" that is then applied to your overall taxable federal income).  While that may result in a higher level of Oregon taxes, it's the easiest filing option from an administrative perspective.

Second, you can file a joint federal income tax return (or separate federal tax returns if you like), and then file as Married Filing Separately for Oregon (only).  The somewhat complicated process for doing so is described at the following TurboTax webpage:

https://ttlc.intuit.com/questions/1901214-how-do-i-prepare-a-joint-federal-return-and-separate-state...


Both methods are supported in the TurboTax family, although you will certainly find the second option much easier to do, mechanically speaking, in TurboTax desktop software, rather than TurboTax online.

Finally, since Washington state has no personal income tax system, you don't have be concerned about filing any tax return in Washington at all.

Thank you for asking this question.

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