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Level 2
February 13, 2021
Question

Live in Washington

  • February 13, 2021
  • 15 replies
  • 62 views
Live in Washington (no state income tax) and wife works in Oregon. She worked in Oregon for 80 days in 2020 and in Washington rest of year. I am filling out Oregon non-resident form in Turbotax and am unable to find a way to prorate her Oregon income.

15 replies

LenaH
Alumni - Expert
Alumni - Expert
February 13, 2021

If you need to allocate a portion of wages to Oregon, you will have to indicate that you made wages in another state in your Personal Information section and also add a nonresident return

 

Please follow these steps in TurboTax:

  1. With your return open, select My Info in the left-hand menu.
  2. Confirm you and your spouse have Washington as your resident state. 
  3. Scroll down on the Personal info summary screen to Other State Income, and select Edit.
  4. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
  5. Select Continue to return to your Personal info summary.
  6. Click on State on the left-hand side.
  7. Add Oregon
  8. Follow the on-screen instructions.
  9. On the screen Oregon Source Income and Adjustments enter your Oregon Wages in the corresponding box. 
  10. Click continue

I have attached a picture for additional reference of the screen in which you allocate wages as stated in step #9.

 

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taenkAuthor
Level 2
February 14, 2021

Thank you for the informative reply. I followed your instructions and have one additional question. Her job is based in Oregon so her W2 shows all wages being earned in Oregon and she paid Oregon state taxes on all her 2020 wages. Due to COVID, she actually only worked in Oregon for 22% of the year and in Washington for 78%. So if I enter 22% of her salary on the Oregon Source Income and Adjustments page as you instructed it will not match the wages on her W2 form. Will that cause any issues?

Level 13
February 14, 2021

It is possible that Oregon will follow-up with questions about the difference between what was reported as OR income on her W-2 and what you report on your OR return, but that is OK.

 

If you get questions from OR, just provide the explanation that she worked remotely.