Oregon Personal Taxes

[ruthc]

I have a client who has a W2 from Oregon. She is a non-resident. Wages= $851 and total Federal wages = $26110. The AGI = $26154.
I don't have the software for Oregon and the client who is a friend said not to do the Oregon return just to get her withheld taxes of $33. I read the instructions for Oregon and it looks like she doesn't have to file if the std deduction which is $2025 is more than her Oregon wages which it is.
I would like to prepare a manual return for her to send in just to get her withholding back(no charge). I did the return using the fill in form online. I was surprised after doing the return and doing the worksheets that she would owe $4 yet the instructions said she shouldn't have to file.
If there are any folks out there that do Oregon taxes could you look at the above figures and at least say whether she shuold have to file ornot? Maybe I came out with something owed because she is a non-resident and some of the amounts have to be a % so she is not entitled to the total std deduction. Any thoughts would be appreciated.

[JohnH]

I'm not inmy office today so I can't look this up. But I had a client a few years back who was a CA resident working in OR. As I recall, at tht time we would have to prepare a special worksheet based on OR instructions (no OR form provided). The worksheet always provided a result which was very unfavorable to a non-resident. I even exchanged a few emails with the OR dept of revenue abut it and they confirmed that my calculations were correct.

[Koss]

Oregon Nonresident

I'm getting a different result: a refund of $3.00.

But I had to make certain assumptions that may not be accurate.

Here's a link to Oregon Form 40N, with your numbers, generated by my software:

http://sgaweb.net/cbllc/bzrw4480.pdf

What software are you using?

BMK

[Burke]

Maybe I came out with something owed because she is a non-resident and some of the amounts have to be a % so she is not entitled to the total std deduction. Any thoughts would be appreciated.

I do not do Oregon, but I assume you did use Form 40-N and had to apply the percentage to all deductions and exemptions. I ran into the exact same situation in VA this year; i.e, VAGI was under the minimum to file, but as a non-resident the TP did not get a full refund of the tax withheld. (Interestingly, if he had filed a Part-Year showing 1 day in VA, he would have received it all back.) Since she received wages, did she not qualify for any time residing in OR? If you do not buy out-of-state software, the TTB All States book can be very helpful.

[ruthc]

A couple Differences

Thanks so much. I use TaxAct.
I guess I didn't calculate a couple line items correctly. The rest matches yours. I recalculated. How did you calculate line 45 (federal tax liability)? The federal return showed a net federal tax liability of $1950 which includes a $19 foreign tax credit. So line 46 would be $19. I don't know how you came up with $134 on line 47. I got $65, but I could be wrong.
Would you be able to plug the numbers again with the above liability and $19 foreign credit to see what it would come up with? We are within a few dollars, but I would like to know I did it correctly and matched your numbers. I really appreciate it.

A final question.......If the instructions state that if the wages are below the standard deduction would I be ok with not filing the return at all?

[Koss]

Oregon

How did you calculate line 45 (federal tax liability)? The federal return showed a net federal tax liability of $1950 which includes a $19 foreign tax credit.

On the federal return, I have:

26,154 AGI
(5950) Standard Deduction
(3800) Personal Exemption
16,404 Taxable Income
2,029 Tax

Of course I didn't know about the foreign tax credit of $19. But that still doesn't explain the difference between $1,950 and $2,029.

So line 46 would be $19.

I don't understand how you are getting an entry on line 46 of the Oregon tax return.

I don't know how you came up with $134 on line 47.

Line 47 appears to be:

(Line 44 + Line 45) x Line 39

Your client is probably not required to file an Oregon return.

But if you'd like to solve the mystery, you can e-mail me.

BMK

[Koss]

Federal Tax = $1950?

I manipulated the federal return to get a tax liability of $1950, but in order to do that, I had to lower the AGI.

Even after accounting for a foreign tax credit of $19, I still don't see how the federal tax liability came to $1950. There must be an adjustment or something that I don't know about LOL

But that would mean that the AGI is not 26,154, as you said in your original post

Or else there's qualified dividends involved, or something else

Here's an updated version of the Oregon return:

http://sgaweb.net/cbllc/bzrw4483.pdf

BMK

[ruthc]

Thanks koss!

Just want to give a big thanks to Koss for the help on this return. I am all set now thanks to Koss!!!!