Should i be taxed in california if i work there bu...
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New Member

Should i be taxed in california if i work there but my residence is oregon

just moved there in jan 2020 and dont want to have to file two returns next year. my boss said to figure it out
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Level 15

Should i be taxed in california if i work there but my residence is oregon

Yes.

The rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state.

 

 

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Level 14

Should i be taxed in california if i work there but my residence is oregon

<<Your home state will give you a credit, or partial credit, for what you paid the non-resident state.>>

 

The above is the usual rule.  However California and Oregon are "reverse credit" states.  That means that your non-resident state (CA) will give you a credit for taxes paid to your resident state (OR), on income that is taxed by both states. 

Income from work actually performed in CA is taxable by CA whether or not you are a CA resident.  So you will have to file two returns next year.

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

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