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Level 1
posted Jul 11, 2020 3:35:26 PM

Washington Res working in Oregon took 401k withdrawal. Do I need to pay Oregon taxes?

Washington Resident and work in Oregon. Took an early distribution on my 401K. DO I have to pay Oregon taxes on this money since I live in Washington? Working through TT  I have the field that asks if some or all withdrawals were taxed by another state. Since Washington does not have income tax how do I answer this question.

 

Thank you

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2 Replies
Expert Alumni
Jul 11, 2020 3:52:08 PM

No.  You are taxed in the state where you live, not work.  And since Washington does not have income tax, you will not pay state tax.

Level 1
Jul 11, 2020 6:05:23 PM

Thats what I feel as well.
The issue is no matter if I use TT or do it by hand with the non resident oregon from 40-N it pulls information from the 1040 and then Oregon shows that as income as well.  when It was not earned in Oregon.