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Returning Member
posted Feb 5, 2021 11:16:49 PM

Oregon resident vs California State tax

I was active duty military until march 2020 and then moved back home to oregon until april of 2020 where i worked in California for 3 months. So im technically still an Oregon resident at the time working in California. 
i inputted my oregon fed and state and was being refunded, but when I inputted my California fed and state I all of a sudden OWED money to OREGON on the state takes but was being refunded by California  
why is this? 

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1 Replies
Level 15
Feb 6, 2021 4:16:44 AM

Well, the exact details of your living/working situation are still not clear....

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But I suspect you did not move to and remain in CA for more than those 3 months ...or not at all if you lived near the border and just crossed over to work daily.

 

IF that is the situation, then you worked in CA as a non-resident.   CA and OR have an inverse reciprocal tax agreement.  This means that your resident state gets to tax ALL your income from CA too, and you get to take a tax credit on the CA non-resident tax return for the tax OR applied to the CA income.

 

As such, if the CA job withheld CA taxes, then CA will end up refunding some of the taxes they withheld for CA, because OR has the right to tax all of that CA income.  As such, yes....CA refund and more OR taxes.

 

AFTER you fully fill in your Federal tax return data ...every scrap....be sure you go thru the OR tax interview before working thru the CA tax return......and work thru neither state interview until the Federal area has been fully filled in with every scrap of income, deductions, credits and Federal error checks have been passed.