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WP21Rams1
New Member

Oregon Tax applicable to non-resident

I live in Washington state and my employer pays me from Oregon and withholds Oregon state income tax.  I do.not work in Oregon but from my home in Washington state.  Do I need to pay Oregon state income taxes?

1 Best answer

Accepted Solutions
TomD8
Level 15

Oregon Tax applicable to non-resident

From page 47 of the 2020 Oregon Tax Instructions:

 

Nonresidents. *Oregon taxes the income you earned while working in Oregon. Oregon doesn’t tax any amount you earned while you were working outside Oregon.  Nonresident telecommuters who work for an Oregon employer are taxed only on the income earned from work performed in Oregon, including sick pay or other benefits.

https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2020.pdf

 

Therefore, if you're a Washington resident who never actually performs work in Oregon, your income is not subject to OR income tax.  However, if your employer incorrectly withheld OR income tax, you will have to file a non-resident OR tax return, showing zero OR income, in order to receive a refund of those taxes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

View solution in original post

3 Replies
JotikaT2
Expert Alumni

Oregon Tax applicable to non-resident

It depends.

 

If your gross income exceeds the amounts listed in the following link based upon your filing status, you will need to file a nonresident tax return in Oregon as the income is from Oregon sources.  

 

You will file using Form OR-40-N if you meet the filing requirement.

 

Oregon nonresident filing requirement threshold amounts

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TomD8
Level 15

Oregon Tax applicable to non-resident

From page 47 of the 2020 Oregon Tax Instructions:

 

Nonresidents. *Oregon taxes the income you earned while working in Oregon. Oregon doesn’t tax any amount you earned while you were working outside Oregon.  Nonresident telecommuters who work for an Oregon employer are taxed only on the income earned from work performed in Oregon, including sick pay or other benefits.

https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2020.pdf

 

Therefore, if you're a Washington resident who never actually performs work in Oregon, your income is not subject to OR income tax.  However, if your employer incorrectly withheld OR income tax, you will have to file a non-resident OR tax return, showing zero OR income, in order to receive a refund of those taxes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

View solution in original post

WP21Rams1
New Member

Oregon Tax applicable to non-resident

Thank You!

 

 

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