State filing/residency question NC and OR

[userfromnc]

I lived and worked in NC all of 2019.  My husband took a job in Oregon for two months.  The other 10 months he lived and earned income in NC.  Was he a non-resident of OR for those two months (Aug-Sept) or was he part year in both NC and OR?

[KatrinaB48]

He will file as a part-year resident of Oregon since he lived in the state for more than 31 days in 2019. According to the Oregon Department of Revenue, a taxpayer is only considered a nonresident if all the following are true (special-case Oregon residents):

• You're an Oregon resident who maintained a permanent home outside Oregon the entire year.
• You didn't keep a home in Oregon during any part of the year.
• You spent less than 31 days in Oregon during the year.
• You meet the federal "physical presence" test or "bona fide residence" test for residents of the United States living in a foreign country.

The state of Oregon allows married couples to file as married filing separately on their state return if their residency status was separate. Please follow the directions in this TurboTax FAQ to complete your Oregon return.

[SteamTrain]

It appears that he didn't move there permanently...so he file OR as a non-resident.

Thousands of College students work in other states during the summer....some adults take short-term jobs in other states for a couple months...but don't really move there...other than temporary housing, (or in an RV for some retired folks) . They all work in the other state as non-residents, until they more-or-less permanently move to that state

So his OR tax is as a non-resident (have work on that before NC)....then NC taxes everything from both of you, but NC will allow a tax credit for the taxes OR kept from whatever he had withheld in OR.  (at least "up-to the tax NC would have charged on the same income).  That NC credit effectively makes up for double-taxation.

[SteamTrain]

Nope...Non-Resident.  To file OR as part-year leaves the taxpayer in an impossible situation.

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My reference for OR:

"Am I a resident, a nonresident, or a part-year resident?
• You're a full-year Oregon resident, even if you live outside Oregon, if all of the following are true:
— You think of Oregon as your permanent home.  (Nope...unlikely in this situation)
— Oregon is the center of your financial, social, and family life.  (Nope..)
— Oregon is the place you intend to return.    (Nope..)

• You're still a full-year resident if:
— You temporarily moved out of Oregon or
— You moved back to Oregon after a temporary absence.
You may also be considered a full-year resident if you spent more than 200 days in Oregon during 2019 or you’re a nonresident alien, as defined by federal law.

• You’re a nonresident if your permanent home was outside Oregon all year.     (Yep OR was only a temp living condition)

• You’re a part-year resident if you moved into or out of Oregon during 2019. ( Interpretation of this could be the problem...just  coming to OR  to work isn't a "move' If you didn't intend to establish a more-or-less permanent residence in OR  (my opinion))

You're not considered a partyear resident if:
— You temporarily moved out of Oregon, or
— You moved back to Oregon after a temporary absence.

150-101-043 (Rev. 02-24-20) 6

Special-case Oregon residents. If you’re an Oregon resident and you meet all of the following conditions,  you’re considered a nonresident for tax purposes:
• You maintained a permanent home outside Oregon for the entire year.
• You didn't keep a home in Oregon during any part of the year.
• You spent less than 31 days in Oregon during the year.

Important. A recreational vehicle (RV) isn’t considered
a permanent home outside of Oregon."

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page 5:

https://www.oregon.gov/dor/forms/FormsPubs/publication-or-40-fy_101-043_2019.pdf

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True, I'm just another user with just 20+ years of experience using TurboTax software..so I can navigate the software...but some gritty tax details may be beyond my ken.