Sunday, March 6, 2011

About if you work in Portland, OR, but commute from Vancouver, WA (15 min), do you benefit from WA's zero state tax

If you work in Portland, OR, but commute from Vancouver, WA (15 min), do you benefit from WA's zero state tax?

United States - 8 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
No. You have to file a non-resident OR tax filing.
Answer 2 :
you have to file the OR non-resident return, Form 40N
Answer 3 :
You would benefit from no state income tax in WA only if you worked in WA. Since you work in OR, you will file a nonresident OR tax return and pay income tax to OR. If you also paid income tax to WA, you would receive a credit from WA for tax you paid to OR. On the other hand, a person living in Portland, OR who worked in Vancouver, WA would file a resident OR tax return and pay tax to OR but not to WA.
Answer 4 :
WA and OR have a reciprocity agreement in place that generally insulates WA residents working in OR from paying the OR state income tax. Conversely, OR residents shopping in WA do not pay the WA sales tax.
Answer 5 :
Bostonian is usually right, but not in this case. Except for very limited situations, if you work in OR you owe OR state income tax regardless of where you live. There is no special exception for WA residents working in OR.
Answer 6 :
according to IRS your tax home is where you work unless this job is short, temporary, less than a year's duration if this is a permanent job, you file Ore state tax
Answer 7 :
need to file an OR income tax return as non-resident
Answer 8 :
WA and OR do not have a reciprocity agreement and you will be required to file a state tax return in Oregon. Your employer should have taken withholding out but it would be common for them not to.
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