I am trying to figure out how I treat some of my income. I live in WA state, and commute to OR one day a week, and work from home the other 4 days a week. I know that I pay Oregon tax for the days that I work in Oregon but not for the days I work in Washington. My question is around lump sum bonus income. To make it more complicated, my 2023 annual bonus was for work done in 2022. I changed from fully remote to this 1-day-a-week in Oregon halfway through the year, so for simplicity sake, I worked "in Oregon" 10% of 2022 and 20% of 2023. Do I:
Pay Oregon tax on your bonus based on your 2022 "days worked in Oregon" because that's when you "earned" your bonus - 10%.
Thank you.
On a similar note, I have a question around Restricted Stock Units.
Granted an RSU worth $10k
At distribution date 1 yr later, it is now worth $12k
Is the whole $12k subject to the "days worked in Oregon" breakdown, or just the $10k value when it was granted?
You may want to post that as a new question, to get more eyes on it.
It is the value at the time it vests, which in your example is $12,000. That is the amount that will be included in your wages and reported on your W-2 in box 1. RSU awards have no real value unless and until they vest, at which time they value of the RSU is considered earned income. Similarly if the value of the RSU dropped to $8,000, that is the amount that would be included in your wages, and is also the amount that would be used to calculate the percentage that is taxable by Oregon.