Sunday, July 3, 2011

About my spouse and I are separating. Because I work in Washington State

My spouse and I are separating. Because I work in Washington State?
I am thinking of renting a home in Washington State, and allowing my spouse and children to continue living in Oregon. Would I owe Oregon Income Tax if this were my living situation?
United States - 5 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
Your tax situation depends on where you work, not where you live.
Answer 2 :
No, you would owe taxes in the state where you worked. If you and your husband file joint income taxes and Oregon has a state tax, you would have to pay taxes on what your husband earned in Oregon.
Answer 3 :
If you live in Washington State the entire year, you will not owe Oregon income tax because you are no longer an Oregon resident. If you move to Washington and live there only part of the year, you will file as a part-year resident of Oregon and owe a proportionate amount of income tax. You need to file a separate return for the above.
Answer 4 :
I am assuming you are not a same-sex couple. You owe Oregon taxes on all of your income earned anywhere in the world if you are an Oregon resident. You also owe Oregon taxes on income earned from Oregon sources no matter where you live. If you abandon your Oregon residence completely without intention of returning soon, you won't owe any Oregon taxes unless you work in Oregon, have a business in Oregon, win money from an Oregon casino, etc. Remember that you would still owe Oregon taxes for the period of time before you moved out of Oregon. Keep in mind that Washington is a community property state, but Oregon is a common law state. The fact that you live in Washington means that your spouse will own half of anything you earn while the community still exists under Washington law. This presents a tax problem for your spouse (not you, since Washington doesn't have an income tax). Essentially this means that your spouse will have to pay Oregon income tax on half the money you earn, even though you don't live or work in Oregon. Please refer to the examples on page 19 of Oregon Publication 17 1/2: http://www.oregon.gov/DOR/PERTAX/docs/2009Forms/101-431-09.pdf Under Washington law, the community ends when the marriage becomes "defunct." You should consult with your divorce attorney about how this applies to your marriage. I would suggest that your spouse work with a qualified tax practitioner to file their taxes as the issues of community property are difficult for most people to understand. As for you, if you choose to file a separate federal return, you are also going to have to deal with community property issues. You may also wish to consult with a qualified tax practitioner. And some non-tax advice: If there is the possibility of a divorce or legal separation in your future, consult with a divorce attorney before making the decision to move to Washington. Your move could have a major impact on your property rights in the event of a divorce.
Answer 5 :
if you are working in Wash for more than a temporary assignment, one that is likely to be permanent, you will file your tax home as Wash. not sure I understand your meaning of separation--is this something that will be permanent? if you have moved as of June 30 for the remainder of the year, without a single overnite, you can file as single-- the spouse also single and if the children reside with the spouse, head of household but the June 30-Dec. 31, time line is critical, not a single overnite during that time
Read more other entries :