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awolfmoon
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

Active duty military in NM, home state is OR.  Spouse worked in NM & completed Form RPD-41348 to not without NM taxes. Don't those wages have to have OR taxes paid, or do I fit under the same criteria as active military working outside of OR?  IF they do need to be paid, how do I get Turbo Tax to calculate the taxes due correctly?

1 Best answer

Accepted Solutions
ToddL
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

When you complete the Personal Interview:

  1. Select OR as your state of residence (both of you);
  2. Answer "No" when asked if you "Lived in another state in 2017?" That question only applies if you changed your state of residence in 2017.
  3. When asked if you "Earned money in another state?", answer "No" (unless the military member had non-military income in the state where you are stationed).

If you entered the military from Oregon, your state of legal residence (HOR) continues to be Oregon no matter where you are stationed. It should appear in Boxes 15-17 of your DFAS W-2.

As a residents of OR, you are subject to OR state income tax, must file a OR tax return, and pay OR taxes (when applicable- see below).

Oregon allows its residents to exempt their military pay from OR tax if they are stationed outside OR for the entire year.They have a similar tax break for military spouses. See Oregon Department of Revenue / Programs / Individuals / Military personnel

Military pay subtractions

You may qualify for more than one of the subtractions below if your federal adjusted gross income (AGI) includes military pay. Military pay is: active duty pay; reenlistment bonuses; and pay for guard and reserve annual training, weekend drills, and inactive duty training.

  • Stationed outside Oregon—For military pay earned while stationed anywhere outside Oregon.
  • Guard and reserve away from home—For military pay earned by National Guard members or reservists assigned away from home 21 days or more.
  • Other military pay—For any remaining taxable military pay after taking the above subtractions, up to $6,000.

Your total subtraction can't be more than the total military pay included in federal AGI. Military pay not included in federal AGI isn't taxed by Oregon and can't be subtracted.

Oregon resident spouse living outside of Oregon

Do you qualify to be treated as a nonresident because you meet the special case Oregon resident requirements? If so, you aren't taxed on your out-of-state wages or self-employment income, even if the other state can't tax you because of the federal Military Spouse Residency Relief Act. You don't have to file unless you had Oregon tax withheld or other Oregon source income, such as rental income or retirement pay. If you file, use Form OR-40-N.

 

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7 Replies
ToddL
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

Is your spouse's HOR also OR?
awolfmoon
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

Yes.  Our Home Of Record is Oregon for both of us.
awolfmoon
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

Thank you for your response.  However, my issue is that no state tax due to Oregon is calculating in TurboTax that I think is due from the wages earned by spouse NM (with both our HOR as OR, and no state taxes taken out of the pay earned by spouse in NM). This is why I questioned whether I missed something, since I believe taxes to Oregon ARE due.  I had answered everything already according to the way you detailed it in your answer.  I an iwondering if I need to call TurboTax to advise of a potential glitch?
ToddL
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

No glitch - I'll update the answer with additional information.
ToddL
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

See the link to OR DOR - you may still owe OR tax if you have any OR source income, other than your military pay.
awolfmoon
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

Ok, perfect!  Thank you.  This was the case for us.  Spouse IS getting Oregon tax from other source income that is not wages, but not the "wages" earned in NM.
ToddL
New Member

Military in NM, HOR=OR. Spouse worked in NM & completed Form RPD-41348 to stop NM taxes. Aren't OR taxes due on these wages? How do I enter them in TurboTax?

When you complete the Personal Interview:

  1. Select OR as your state of residence (both of you);
  2. Answer "No" when asked if you "Lived in another state in 2017?" That question only applies if you changed your state of residence in 2017.
  3. When asked if you "Earned money in another state?", answer "No" (unless the military member had non-military income in the state where you are stationed).

If you entered the military from Oregon, your state of legal residence (HOR) continues to be Oregon no matter where you are stationed. It should appear in Boxes 15-17 of your DFAS W-2.

As a residents of OR, you are subject to OR state income tax, must file a OR tax return, and pay OR taxes (when applicable- see below).

Oregon allows its residents to exempt their military pay from OR tax if they are stationed outside OR for the entire year.They have a similar tax break for military spouses. See Oregon Department of Revenue / Programs / Individuals / Military personnel

Military pay subtractions

You may qualify for more than one of the subtractions below if your federal adjusted gross income (AGI) includes military pay. Military pay is: active duty pay; reenlistment bonuses; and pay for guard and reserve annual training, weekend drills, and inactive duty training.

  • Stationed outside Oregon—For military pay earned while stationed anywhere outside Oregon.
  • Guard and reserve away from home—For military pay earned by National Guard members or reservists assigned away from home 21 days or more.
  • Other military pay—For any remaining taxable military pay after taking the above subtractions, up to $6,000.

Your total subtraction can't be more than the total military pay included in federal AGI. Military pay not included in federal AGI isn't taxed by Oregon and can't be subtracted.

Oregon resident spouse living outside of Oregon

Do you qualify to be treated as a nonresident because you meet the special case Oregon resident requirements? If so, you aren't taxed on your out-of-state wages or self-employment income, even if the other state can't tax you because of the federal Military Spouse Residency Relief Act. You don't have to file unless you had Oregon tax withheld or other Oregon source income, such as rental income or retirement pay. If you file, use Form OR-40-N.

 

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