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Old 03-31-2011, 01:39 PM
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Multi-State Tax issue

I am engaged to be married; I live and work in Washington state. My fiance lives in Oregon, 2 hours away. When we marry, I am not certain which state to declare residency in. I own a home in Seattle and live there the part of the time. I believe I can legally retain my Washington state residency as I live and work there.

What are the tax implications of living in Oregon and earning your income in Washington?

Would I owe Oregon state income tax if I had Oregon residency but worked in Washington?

Would we be able to file a joint Federal return if we resided in 2 states?

Thank you!!!



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Old 03-31-2011, 02:04 PM
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“I believe I can legally retain my Washington state residency as I live and work there. “-->Agreed.I guess you are full year resident of WA state.
“What are the tax implications of living in Oregon and earning your income in Washington?”-->As you can see, there is no state income tax in WA state, the person earning income in WA state needs to file his Oregonian state income tax to Oregon as he doesn’t pay any income tax to WA, he doesn’t claim state income tax credit on OR return.
“Would I owe Oregon state income tax if I had Oregon residency but worked in Washington?”--> Yes; as said above. You should file your OR tax, as full year resident of OR, on your WA income.
“Would we be able to file a joint Federal return if we resided in 2 states?”-->. Yes; you can file your federal return either as MFJ or MFS while you ( as you live in the two separate states) need to file MFS on her OR state return; as there in state income tax in WA state.



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Old 03-31-2011, 03:00 PM
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Okay, if I retain Washington state residency after marriage, will I still owe OR state income tax? I am just trying to figure out how not to lose $250 a month in income, to Oregon state taxes.



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Old 03-31-2011, 06:47 PM
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“Okay, if I retain Washington state residency after marriage, will I still owe OR state income tax?”---->No; as said, you are still full year resident of WA while your spouse is a full year resident of OR, so she needs to file her OR return as MFS. You are NOT responsible for OR state taxes on your WA income.Only your spouse( if she is a full year resident of OR) is responsible for OR taxes on her income that she earned in OR.



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Old 04-06-2011, 12:36 PM
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*Are you sure we could file Fedral Jointly and he could file Oregon MFS?

The Oregon tax form uses line items from the Federal form and is filed with copies of the federal forms 1040, itemized deductions and schedule F attached.



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Old 04-06-2011, 03:37 PM
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“*Are you sure we could file Fedral Jointly and he could file Oregon MFS?”-As you said, you can file your federal return either as MFJ or MFS while he MAY file his OR return as MFS;
Please visit the OREGON DOR Website here ( READ ” Exceptions for married persons when each spouse has a different residency status:” SECTION); http://www.oregon.gov/DOR/PERTAX/doc...101-043-10.pdf
“The Oregon tax form uses line items from the Federal form and is filed with copies of the federal forms 1040, itemized deductions and schedule F attached.”- He needs to include his federal Form 1040, 1040A, or1040EZ prepared “as if” he had filed married filing separately, and A copy of the joint Form 1040, 1040A, or 1040EZ, he actually filed with the IRS.



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