I am moving next week from OR (with state tax) to WA (no state taxes) and work from home most of the time. My employer is based in OR. I work about 2 to 5 hours per week in OR (I go to a couple in-office or client meetings).
1. Do I need to file an OR non-resident return for next tax year (2025/2026) and claim those hours in OR even though it is less than 10% of my working hours for the year? What is the maximum time I can spend in OR to not have to claim hours there? My HR rep said that if I spend less than 4 hours in OR weekly that I do not have to file tax hours in OR.
2. Do I file a partial resident return for this year since I am moving to WA on 11/1?
3. My pay is both salary and commission. OR double taxes my commission because they consider it “extra” income. Will the hours I need to claim for working in OR be based on my salary pay only or ALL of my pay?
Thanks!
Hi Calley67!
Oregon taxes all income made while working in the state, but not wages earned while working remotely in another state. So, anytime you work while physically in the state of Oregon, the income would be taxed. If your total Oregon income next year is above these thresholds then you would have to file a nonresident return for the year. For this year, yes you would file a part-year return for the time up until your move date.
I hope that helps!