Discussion:CA and OR part year w-2 incorrect.
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> CA and OR part year w-2 incorrect.
Discussion Forum Index --> Tax Questions --> CA and OR part year w-2 incorrect.
| March 21, 2008 | |
| Client moved from CA to OR in early Feb. 07. Using made up numbers. W-2 shows total wages of $100,000. However, CA wages shows $10,000 and OR wages shows $100,000. Since client worked in CA the first month that part of the W-2 seems correct. Not sure why OR wages shows total since taxpayer was part year OR. Per Oregon rules, OR does NOT allow credit for tax paid to CA since it's a part year return. Could not find that CA will allow a credit for tax paid to OR. So I think options are 1) to have client try to get a corrected W-2 that shows correct OR wage. 2) pay tax to both states, or ?? Thanks for any input. | |
| 21 March 2008 | |
| First of all to inform your payroll department and to get corrected W-2c. And then file your Federal and State Tax Return for both your state from where you have income.
If you don't get W-2c till 15th April 2008 then file a "Form 4868" to IRS for automatic 6 month extension. | |
| 22 March 2008 | |
| Oregon and California stand in a reverse credit relationship; if there is any income that is taxed by both states, the state where the taxpayer was a nonresident when the income was earned is the one that will grant the credit. I don't see anything in the Oregon instructions that indicates no credit would be allowed on a part-year resident return. If the client worked in Oregon (perhaps commuting) for the first month of the year, while still residing in California, the W-2 would be right, and Oregon would allow credit for the tax paid to Oregon on that month's income.
If the client's residence and work location changed at the same time, the Oregon amount on the W-2 is incorrect. I wouldn't bother getting a corrected W-2; I'd just allocate to OR on the part-year resident return the amount that is attributable to OR, and attach an explanation of the difference. Also, there is no need to postpone filing the federal or California returns. | |
To join in on this discussion, you must first
log in.
