Do US expats need to file Oregon state taxes? Possibly. One thing for sure though, is that all US Citizens and Greencard Holders are required to report their worldwide income to the IRS regardless of where they live and work (just see this post to learn more about that).
If you are no longer domiciled (meaning, you don’t consider yourself to have a permanent home in the states that you will return to if your job contract expires) read on. If you still are domiciled in Oregon, you will most likely need to file a state return every year!
Oregon Tax Guide
Here’s a simple guide that helps you determine whether you need to file Oregon state taxes:
Did you live in Oregon for any part of the year?
- Yes: You will need to file as Part-Year Resident, skip down below
- No: Continue on
Did you earn any Oregon sourced income during the year?
- Yes: File as Non-Resident, skip down below
- No: You don’t need to file
Oregon residents must file a state tax return if they are required to file a federal tax return, even if they do not have an Oregon tax liability. Oregon taxes your income from all sources.
Income earned by an individual while they are not a resident of Oregon or Part-Year Resident will be taxed in Oregon only if it is considered Oregon sourced income.
What is Oregon Sourced Income?
- Money/income earned while you worked physically in Oregon State (i.e. any income including normal salary from your non-US employer) or while on a business trip to Oregon.
- Or income earned from physical property located in Oregon (i.e. rental income from your old Oregon home).
Other Oregon Income Sources are listed here.
Oregon Specific Filing Details
Part-year and nonresident:
|You must file an Oregon income tax return if:|
|Your filing status is-||And your Oregon gross income is more than-|
|Can be claimed on another’s return||$1,050*|
|Married filing jointly||$4,435|
|Married filing separately|
|* If spouse claims standard deduction||$2,215|
|* If spouse itemizes deductions||$0|
|Head of household||$3,570|
|* The larger of $1,050, or your earned income plus $350, up to the standard deduction amount for your filing status.|
As a Part-Year Resident: Oregon taxes your income from all sources earned or received while you were an Oregon resident. Oregon also taxes your income from Oregon sources while you were a nonresident.
Expat Tax Benefits
Which expat tax benefits does Oregon State allow?
- Moving Expenses: No
- Foreign Earned Income Exclusion: Yes
- Foreign Tax Credit: No
Additional Tax Support
The information we shared on whether US expats need to file Oregon state taxes is a lot. So don’t panic if you can’t understand it all! We at MyExpatTaxes can help you out with your state tax filings in an affordable way. Click here to sign up for our app, and get ready for a fun ride!