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Ask Sandi Hargrove, SkyHawks Your Own Que...
Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks, Master Tax Advisor, Enrolled Agent
Category: Tax
Satisfied Customers: 1257
Experience:  I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.
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I live in Washington and work in Oregon. This check, they ...

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I live in Washington and work in Oregon. This check, they withheld $72 for Oregon wtihholding. Can I apply for a refund of this money at the end of the year, even though I do not live in Oregon?

Because you work in OR, your income earned there will be taxable to that state. If your withholding is more than the tax due, you will receive a refund of the extra amount. You will use NONRESIDENT forms and only the OR income will be taxed instead of your total income.


The withheld tax for OR may be a deduction for you if you use Schedule A with your Federal 1040. You can use this amount OR the sales tax amount if that is higher.

Customer: replied 11 years ago.
Reply to Sandi Hargrove, SkyHawks's Post: You said:
The withheld tax for OR may be a deduction for you if you use Schedule A with your Federal 1040. You can use this amount OR the sales tax amount if that is higher.

I'm not sure I understand this. There is no sales tax in Oregon, but there is in Washington. When you say I can deduct this amount, do you mean from my federal tax?

You also said:
You will use NONRESIDENT forms and only the OR income will be taxed instead of your total income.

I only have one source of income, and that is in Oregon. So, would I use the nonresident form and file in Oregon? I'm not sure how to do this. Or, do I just file the federal taxes and not file for state? When I do my taxes, do I file in Washington or Oregon or both?

Washington does not have income tax so no return need be filed for your resident state.


OR will require a nonresident return be filed. Use Form 40N. This will lead you thru listing the total income as reported on your federal return but will only tax the amount earned in OR and not the rest.


Your federal return (schedule A if you itemize) Line 5a will let you deduct the state/local tax withheld plus any balance due for any state return that was paid during 2005 plus any state estimated payments for 2005. Line 5b will allow you to deduct your actual sales tax paid for the year from your receipts OR a flat rate based on your total available income plus any big ticket items(auto, house, etc) paid during the year. You have the option of choosing either line 5a amount or 5b amount but not both.

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