Taxes!

[Oogilily]

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Ok, I am a 1st year opt student at Pacific U. Anyways, maybe somebody who has had experience with this could help me out. We have kept our residency in Utah (we haven't switched to oregon due to WICHE funding requirements to keep residency in Utah). My wife works from home here in Oregon telecommuting by internet back to her company in Utah. She made some of her salary last year in utah, and some of it here in oregon. Now, where do I pay state taxes? Do I pay Utah or Oregon or both? I'm just confused as I have never lived outside of my state and especially as a student which seems to have weird exceptions to everything, especially with keeping residency in Utah. Anyways, any help or advice would be appreciated. If nobody knows anything, I'll just be headed to H&R Block 🙂.

 

[KHE]

Ok, I am a 1st year opt student at Pacific U. Anyways, maybe somebody who has had experience with this could help me out. We have kept our residency in Utah (we haven't switched to oregon due to WICHE funding requirements to keep residency in Utah). My wife works from home here in Oregon telecommuting by internet back to her company in Utah. She made some of her salary last year in utah, and some of it here in oregon. Now, where do I pay state taxes? Do I pay Utah or Oregon or both? I'm just confused as I have never lived outside of my state and especially as a student which seems to have weird exceptions to everything, especially with keeping residency in Utah. Anyways, any help or advice would be appreciated. If nobody knows anything, I'll just be headed to H&R Block 🙂.

If you lived part year in one state and part year in another, you normally pay state income taxes on income only earned in that state. If you earned $10000 in Utah and $10000 in Washington, you would be taxes on $10000 to each state. The fact that your wife telecommutes I believe is immaterial because she earned the money in Washington state. However, as always, consult a CPA.

I also strongly advise AGAINST H&R Block or these types of low level generally untrained people.

I strongly encourage all people to seek the advice of a CPA. Most CPAs definitely charge more than H&R Block but the main advantage is that most of them, as part of your tax return filing will give you unlimited phone consultations throughout the year. Even as a student, I found the advice of a CPA to be highly valuable.

 

[pippistrellodaq]

We just had a similar problem last year. my wife and I had part year earnings from Utah and the rest from Ohio. It's pretty simple to do the state filing. You'll need the TC-40C for the Utah taxes (not sure about Oregon.) The 1040C is for part-year residents and should help break down your earnings into percentages from each state so that you're taxed only on that which you made from a company in Utah. Hope that helps. Email me if you have other questions.