Living in HI working for OR with no tax deducted in OR with estimated payments to HI

[TomekHi]

Last year I was able to use Turbo Tax for this but this year it seems impossible. What's the proper way to do it. Any advice would be appreciated.

Here is my current State tax situation:

• In 2023 I moved permanently to HI so this is my second year of going through this scenario
• I live in HI and work 100% remotely for a company in OR state
• My company on OR does not withdraw any state taxes (neither OR or HI)
• I pay estimated taxes in HI every quarter
• My W2 from my company in OR shows State wages in box 16, however it shows nothing in State income tax box 17
• There is no HI state listed on my W2
• It seems there is no way to manually enter the estimated taxes I paid in HI state

Turbo Tax and State tax implications

• Federal just works as it should
• In Turbo Tax I entered 2 states; OR - nonresident, HI - resident
• I process ny OR (nonresident) state first
• Torbo Tax takes the information from box 16 and uses it as my Wages
• All other Oregon Source of Income are at 0
• I overwrite the income amount to show 0 which I think is proper way
• After few more screens the OR state is done
• Last year I had a letter from my employer stating that I do not have to pay OR taxes as I’m not an OR resident anymore. I did sent this letter together with my OR taxes for processing.
• I do have the same letter for this year
• Next I process my HI (resident tax)
  • Since I set my OR (nonresident) wages to $0 the HI state return asks me the Income earned in OR (Which I entered $) and due to HI as well as taxes paid in OR (which I enter $0)
  • Eventually after few pages I get to Underpayment Penalty which shows $ value stating I have to pay it as I underpay the HI taxes - which is actually not true as I paid estimated taxes
  • That kind of concludes my HI tax but the process is not allowing me to enter my estimated payments for HI taxes

[MaryK4]

If you did not work in Oregon, you do not have to file a nonresident Oregon tax return.  

You enter the Hawaii estimated taxes paid in the Federal Taxes sections- Deductions & Credits--Estimated and Other Taxes Paid under Estimated Tax Payments.  

[TomekHi]

But I did work remotely for the company in Oregon and on my W2 the OR is listed. So should I completely ignore it. If I do this the OR state will start asking question why I did not pay OR taxes, isn't this correct. My employer listed my wages on the W2 for Oregon as they do not pay taxes to other states and it is up to me to pay the tax in the state I live.

[MaryK4]

If you did not work in Oregon, you do not have to file a nonresident Oregon tax return.  Per Oregon Department of Revenue:

"You need to file an Oregon return if your gross income from Oregon taxable sources while you were a nonresident, plus your gross income from all sources while you were a resident if filing a part-year return, was more than the amount shown for your filing status."  See Personal Income Tax - Oregon Department of Revenue.  @TomekHi