If I work in Washington state, but live in Oregon, will I pay Oregon income tax?
I have a chance to get a government job in Vancouver Wa. but I want to live in Gresham Oregon. Is wages earned in Washington taxable in Oregon?
United States - 5 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
I'm not positive, you should check with a professional, but I'm pretty sure you'll pay Oregon income tax. I know a lot about the tax system (my grandfather was a CPA), but confirm that with a professional, not me.
Answer 2 :
You pay state income tax where you live & either the employee or employer pay state unemployment tax where you work.....so the answer is yes. You will pay Oregon state tax if applicable...
Answer 3 :
Yes
Answer 4 :
Generally speaking, a person who works in one state and lives in another must report the income to both states, but effectively pays tax only at the tax rate of whichever state has higher taxes. If both states tax the same income, then the person claims a credit on one return for either the tax paid to that state on income also taxed by the other or tax paid to the other state on the income also taxed by the first state whichever is less. To clarify, the credit only applies to tax on income taxed by both states, not to tax on income tax by only one of the states. In the specific case of an Oregon resident with income from Washington state, for 2007, you could claim the credit on your Form 40 Oregon resident return, line 38. For 2007, your credit was the smallest of the following: • Your Washington State 2007 net tax liability. • Your Oregon tax liability after all credits, except the credit for income taxes paid to Washington. • The amount figured using the following formula: Divide your modified adjusted gross income (MAGI) taxed by both states [this would be the amount earned in Washington] by your total MAGI. Multiply the result by your Oregon tax after subtracting all other credits. In other words, your MAGI taxed by both states ×Your Oregon tax after subtracting all other credits / Your total MAGI. For 2008, the rules will probably be similar, but the line number might change. Oregon does not tax active duty U.S. military pay earned outside of Orgeon. If this income was reported on your federal tax return, you include it on your Oregon return, but claim a subtraction using code 319. This does not apply to work as a civilian federal employee or to national guard/reserve weekend training.
Answer 5 :
Yes. If Washington State had a tax, you would end up filing both Oregon and Washington. ( You would just do NON RESIDENT for the state you did NOT live in.) But since WASHINGTON is a NO STATE INCOME TAX state. You just gotta do OREGON (+ Federal). Oregon taxes you because you live there, use their roads, their housing, their policing, etc etc. And if sometimes it really sucks, I lived in Multnomah county once, and I worked in Vancouver, I had to pay, Federal + Oregon + Multnomah County itax. ( That really sucked, what's next BLOCK TAX? - can you believe a county can make you file & pay taxes too?
I have a chance to get a government job in Vancouver Wa. but I want to live in Gresham Oregon. Is wages earned in Washington taxable in Oregon?
United States - 5 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
I'm not positive, you should check with a professional, but I'm pretty sure you'll pay Oregon income tax. I know a lot about the tax system (my grandfather was a CPA), but confirm that with a professional, not me.
Answer 2 :
You pay state income tax where you live & either the employee or employer pay state unemployment tax where you work.....so the answer is yes. You will pay Oregon state tax if applicable...
Answer 3 :
Yes
Answer 4 :
Generally speaking, a person who works in one state and lives in another must report the income to both states, but effectively pays tax only at the tax rate of whichever state has higher taxes. If both states tax the same income, then the person claims a credit on one return for either the tax paid to that state on income also taxed by the other or tax paid to the other state on the income also taxed by the first state whichever is less. To clarify, the credit only applies to tax on income taxed by both states, not to tax on income tax by only one of the states. In the specific case of an Oregon resident with income from Washington state, for 2007, you could claim the credit on your Form 40 Oregon resident return, line 38. For 2007, your credit was the smallest of the following: • Your Washington State 2007 net tax liability. • Your Oregon tax liability after all credits, except the credit for income taxes paid to Washington. • The amount figured using the following formula: Divide your modified adjusted gross income (MAGI) taxed by both states [this would be the amount earned in Washington] by your total MAGI. Multiply the result by your Oregon tax after subtracting all other credits. In other words, your MAGI taxed by both states ×Your Oregon tax after subtracting all other credits / Your total MAGI. For 2008, the rules will probably be similar, but the line number might change. Oregon does not tax active duty U.S. military pay earned outside of Orgeon. If this income was reported on your federal tax return, you include it on your Oregon return, but claim a subtraction using code 319. This does not apply to work as a civilian federal employee or to national guard/reserve weekend training.
Answer 5 :
Yes. If Washington State had a tax, you would end up filing both Oregon and Washington. ( You would just do NON RESIDENT for the state you did NOT live in.) But since WASHINGTON is a NO STATE INCOME TAX state. You just gotta do OREGON (+ Federal). Oregon taxes you because you live there, use their roads, their housing, their policing, etc etc. And if sometimes it really sucks, I lived in Multnomah county once, and I worked in Vancouver, I had to pay, Federal + Oregon + Multnomah County itax. ( That really sucked, what's next BLOCK TAX? - can you believe a county can make you file & pay taxes too?
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