My family and I are on a Temporary Relocation Assignment (TRA) from my employer. We are from Oregon but now living Texas. We’ll be here for at least 18 months and I’m being paid a “per diem” to help offset some costs on top of my normal salary. We will continue to pay income tax in Oregon while we are down here (my per diem is also fully taxed).=======>UNLESS you are a full year resident of TX, you need to pay tax to Oregon on your TX/Oregon source income as a full year resident of Oregon and as a nonresident of TX.As your per diem is fully taxes, this means that your ER applies non-accountable plan; Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay. Your ER will report the total in box 1 of your Form W-2. You must complete Form 2106 / 2106-EZ and itemize your deductions to deduct your expenses for travel, transportation, meals, or entertainment or etc. Unless you itemize deductions on Sch A of 1040, you can not deduct the expenses. Your meal and entertainment expenses will be subject to the 50% limit. Also, your total expenses will be subject to the 2%-of-AGI limit that applies to most miscellaneous itemized deductions.
We will keep our Oregon licenses, car plates, and auto/life insurance. I will also be setting up a PO Box in Oregon on my next trip back (forgot to do that before we left). Texas has no income tax so I’m not worried about taxes here. We sold our home in Oregon (we were going to sell anyways) and are buying here in Texas. =====>Then, unless you become a full year resident of TX, you , as a full year resident, need to pay tax to Oregon DOR on your Oregon source income.
Here are questions/concerns:
- Does buying a home in Texas make my Oregon residency invalid?=====>No not at all;
If so it’s illegal for me to take a per diem. I don’t know why it would. I’m just a triple checker. My employer says it does not invalidate my Oregon residency, but in the same breath they also say “but we can’t guarantee it and should check with a tax professional” =========>>>>>>>>>>it is not ILLEGAL for you to take a per diem;however, while domiciled in Oregon, you can be tqaxed as a nonresident of Oregon if you do not maintain a permanent residence in OR ;you maintain a permanent residence outside oregon and you spend LESS than 31 days of the year in Oregon. So unlessd
- Will my Texas property taxes (and other home deductions) be counted in my Oregon taxes as deductions? =====>>>>>>You, as a full year resident of Oregon and a nonresident of TC need to pay tax on income that you earn in TX to Oregon DOR as there is no state tax in TX. So no income tax in TX, you may claim your pty tax on yoru residence in TX on your federal return on SCh A aslongas you itemize deductions on your return as said above; I mean you CAN NOT claim pty tax in TX on your Oregon form 40 but you MUST claim it on yoru Sch A of 1040.