No longer Oregon resident but paying Oregon taxes?

[rousemouse]

Hello,

  My spouse and I moved from Oregon to Washington in Oct. 2024, but we both receive Oregon PERS. Because we didn't contact PERS until April to change our W9, Oregon taxes were taken from our PERS payments through May, 2025. Between the two of us, we erroneously paid Oregon over $3000 in state taxes during the first half of 2025. In addition, because of a nearly $10,000 liability in 2024, we should be getting approximately $1000 from the Oregon "kicker." All told, we expect to receive a check for approximately $4000 from the state of Oregon. So, imagine our surprise when TurboTax, using OR-40N, Individual Income Tax Return for Nonresidents, calculated that we OWE Oregon over $3700 in taxes for 2025. 

   My question -- is this an error with Turbo Tax Oregon state return or a user error? If the former, what can be done to fix the problem? If it is a user error, please help guide me in correcting my mistake.

   Many thanks for your timely assistance!

Sincerely

- K.R. Washington state resident

[AmyC]

You did not live in OR and OR can't tax the pension of someone who does not live there. You should be filing a nonresident return, claim no OR income and be getting a full refund.

You need to go back through your OR return. Be sure no income is allocated to OR. OR income must be zero. The kicker will still add to your refund. Be sure the tax paid is showing on the OR forms. It doesn't sound like it is. It would have been entered in the federal 1099-R.

Look at the tax forms. Verify:

nonresident marked 

$0 income showing in col B, line 21

kicker credit - line 55

tax already paid in - line 60

refund - line 72

[rousemouse]

Amy,

Thank you for the detailed information and specific instructions! I was using the correct form and had marked it as non-resident. It turns out that the error is with TurboTax programming, which did not recognize a state pension as not taxable for a non resident. The day before AmyC posted her helpful response -- $0 income showing in col B, line 21 on OR 40 N -- I spoke with one of the tax preparers that volunteers for AARP's tax assistance service. He told me the same thing as Amy, but expressed frustration with TurboTax and what he called "sloppy programming." TurboTax, he said, must update its code to exclude pension from taxable income for non-residents.  So, I am hopeful that TurboTax will fix the error and save others from having to sort out this particular issue.

   Thanks!

    - KR