State Income Taxes for 1099-Misc

[djskro]

My son is full-time graduate student at the University of Wisconsin and lives in Wisconsin. In 2023 he was part of a research study conducted by Oregon State University and participated in the study fully remotely from Wisconsin. He received a 1099-Misc with Oregon State University as the Payer, his home address in Wisconsin, Box 3 for $4,938.00 and Box 17 lisitng WI. Must he file an Oregon State Tax return or should he only file a Wisconsin state tax return and include the amount in his Wisconsin state income? If he must file an Oregon state tax return, does he report only the $4,938 as his income or must he include all of the income he has reported on his Federal 1040? Thank you

[DMarkM1]

No.  He only needs to file a WI state return and include the income in the WI state return.  Since he was not physically working in OR they will not tax that income. Here is an OR Department of Revenue source (extracted below).

"Do you work for an Oregon Employer? If you don't live in Oregon, you only have to pay tax on the wages from your job for work you do inside Oregon. Oregon won't tax your wages for work you do at home or some other place outside Oregon."

In TurboTax enter the form 1099-Misc in the "Wages & Income" section using the "Other Common Income" dropdown to find the "Form 1099-Misc" topic.

[djskro]

Thank you for the clear and concise answer.  Just curious, would the situation be different if he would have been physically in Oregon during the 6 weeks the project lasted?  In that case, I assume the 1099-Misc would have included an Oregon address and he would have had state taxes withheld, correct?

[DMarkM1]

Yes, you are correct.  There could have been OR withholding but even without the withholding the income would have been considered OR source income.  If that OR income was more than $2,605 he would have had an OR filing requirement.  Here is an OR link for OR filing requirements.