Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-20-2011, 03:53 PM
Junior Member
 
Join Date: Apr 2011
Posts: 3
moving to Portland area, OR and WA tax questions

Hello,

I may be moving to the Portland area since my fiancee (we'll be married in three weeks) is interviewing for a job there. I'm an author, and since I don't need to be near an office, I was thinking of living in Vancouver, WA to save on state income taxes. If my fiancee (by then she'll be my wife) were to live with me in Washington, I understand she would still have to pay Oregon taxes on her Oregon income. If we both lived in Washington, however, would she still have to pay Oregon taxes on her half of my writing income (because WA is a community property state) or only on her Oregon employer's income?

And, on a related note, what if we were to keep two residences, and I lived primarily in Vancouver, WA, and she used the Portland residence just during the week. Would that help keep our Oregon tax liability down? Would it help if we filed separately? And, more out of curiosity than anything else, would it help if we weren't married? Or were WA registered domestic partners?

Thanks very much!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-20-2011, 09:19 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“If my fiancee (by then she'll be my wife) were to live with me in Washington, I understand she would still have to pay Oregon taxes on her Oregon income.”----->Due to lack of necessary information , I assume that you are full year residents of WA state and your spouse works in Oregon as a nonresident of Oregon. Then if this is the case, your spouse needs to file her return to Oregon on her Oregonian source income. As there is no state income tax in WA state, she can claim her Oregon income tax credit on her federal return on 1040 Sch A if she itemizes deductions. If not, she can’t claim her Oregon state tax credit.
“ If we both lived in Washington, however, would she still have to pay Oregon taxes on her half of my writing income (because WA is a community property state) or only on her Oregon employer's income?”---->s said above, as long as your spouse earns earned and unearned income in Oregon, she needs to file her return as a non-resident of Oregon to Oregon State. She doesn’t have to pay half of your writing income to Oregon. Your writing income that you earn in WA State is NOT subject to Oregon income tax.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-20-2011, 09:36 PM
Junior Member
 
Join Date: Apr 2011
Posts: 3
I see. Thanks very much. We'd be moving from Northern Virginia so are wondering how to set ourselves up. I'm still not entirely clear on the nuances, and really appreciate your help. Would my wife be taxed for half my writing income under the WA community property laws if we had two apartments, and she stayed in Portland during the workweek (making her a resident, I imagine), and I worked and lived in Vancouver?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 04-20-2011, 09:52 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“ Would my wife be taxed for half my writing income under the WA community property laws if we had two apartments, and she stayed in Portland during the workweek (making her a resident, I imagine), and I worked and lived in Vancouver?”---->No as said previously.( I assume that your spouse is a full year resident of Oregon) then as a full year resident of Oregon, your spouse needs to pay her tax on her Oregon source income ( if she still has income from WA, she needs to pay tax on her WA source income to Oregon as a full year resident of Oregion)to Oregon ( her filing status is MFS in Oregon NOT MFJ)and can claim her state income tax on her federal return on 1040 Sch A as said above; you, as a full year resident of WA don't need to pay tax on your WA source income to WA.No state income tax in WA state. However, both you and your spouse can file your federal return aas MFJ or MFS whatever status you want. As said, your income in WA is Not subject to tax to Oregon.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #5 (permalink)  
Old 04-20-2011, 10:31 PM
Junior Member
 
Join Date: Apr 2011
Posts: 3
I see. I though the community property laws in WA made it more complicated. Thank you very much for your help!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Proof of Economic Loss in Declared Disaster Area? Benny2009 Miscellaneous 0 02-11-2010 12:56 AM
IL S Corp moving to NY klft S-Corporation 0 09-25-2009 10:51 PM
Moving S Corp from OR to TX corell S-Corporation 1 02-22-2008 10:06 PM
Moving S-Corp from NJ to PA mogambo S-Corporation 2 05-08-2007 07:43 PM
Moving Soon? Let the IRS Know Samatg General 0 01-23-2007 07:57 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.