I work in OR but live in WA. In Dec. I was paid a STD claim by a 3rd party and OR state income tax was deducted from the claim payment. Why if I wasn't "working" in OR?

[jrosin]

How can they deduct state income tax when I wasn't physically in OR working when the STD claim was made and paid?

[Hal_Al]

You are going to have the third party payer that question. But, the most likely answer is that the STD was based on a benefit earned from working in OR.

[SweetieJean · Accepted solution]

Since it replaced income earned in OR, it is taxable in OR.