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Level 2
January 30, 2021
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Taught in CA now OR resident

  • January 30, 2021
  • 1 reply
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Taught school in CA, retired, now resident of Oregon. Get pension from CalSTRS which taxes my income. But OR wants to tax this income as well. Do I have to pay both states?

    Best answer by MaryK4

    No, federal law says that you only report and pay tax (if required) on retirement income in your state of residence regardless of where you earned it.  You should first contact CalSTRS and let them know you want Oregon withholding.  If they withheld California tax (Box 14) you will need to file a California nonresident return this year to get the withholding back.

    1 reply

    MaryK4
    MaryK4Answer
    Level 15
    January 30, 2021

    No, federal law says that you only report and pay tax (if required) on retirement income in your state of residence regardless of where you earned it.  You should first contact CalSTRS and let them know you want Oregon withholding.  If they withheld California tax (Box 14) you will need to file a California nonresident return this year to get the withholding back.

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    msbabaycoAuthor
    Level 2
    January 30, 2021

    Thank you for your reply. Unfortunately, I already used TurboTax to file both CA and OR states taxes where they both taxed me. Very dumb move. Is it possible to send in a change?

    MaryK4
    Level 15
    January 30, 2021

    Yes, you will be able to amend your return but unfortunately, the amendments are usually not available until at least mid-March.  

     

    @msbabayco

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