Moved over the summer, have been paying taxes in a state I no longer live

Submitted by thattaurusbitch t3_z8vtlm in personalfinance

Back in July, I moved from OR to WA, but I only updated my address in my company’s HR software a couple of weeks ago (I work remote), so now I am no longer paying OR state tax. The problem is, I continued to mistakenly pay OR tax since July. My employer said they are not able to refund taxes because it’s based off when the address was updated in their system. They suggested I ask my financial advisor to see if I can possibly request a refund to backdate when I moved. Since I don’t have a financial advisor, I turn to Reddit. How do I go about requesting a refund? From whom? Is this something handled when I file my taxes for this year? Any guidance is appreciated!

3

Comments

You must log in or register to comment.

jamaicanmecray-z t1_iydjlba wrote

Yes, it is handled when you pay your taxes at the end of the year. Your employer can’t give you a “refund” because they have paid that money to the state of Oregon already, so they’d be going in the red to also pay it to you. They’re not “at fault” since you didn’t tell them not to pay Oregon taxes, so they don’t owe you anything! When you file your taxes, you’ll file a return for Oregon saying that you only lived in OR for six months, and paid 12 months of taxes, so they’ll refund you the ~50% that you overpaid.

Suggestion: make sure you have your remote/telework agreement confirming that you both live and work in WA in case you get audited.

Random: also moved from OR to WA in July and damn this not paying state income tax is nice! Miss not paying sales tax though, what is this percentage they are throwing on all my purchases!

4

thattaurusbitch OP t1_iydkvua wrote

Definitely did not consider my employer at fault in any way! I was just unsure of how withheld taxes worked behind the scenes, but it makes sense that they send that money to OR immediately. I'll look into the remote work agreement - thank you for the suggestion!

Wow do I agree about both of those statements about taxes!! I am shocked at how much it positively impacted my paycheck! Although I really, really miss things costing the sticker price 🥴

1

ProfCatWhisperer t1_iydm75c wrote

So, in your opinion, is it better to not pay state income tax or state sales tax? Considering a move to Portland or Vancouver in a year and looking at the financials of it.

1

Rave-Unicorn-Votive t1_iydpw24 wrote

> Considering a move to Portland or Vancouver in a year and looking at the financials of it.

Not the person you asked but as a renter considering both those cities, I found the pre-tax COL more or less equal and the dollar amount of taxable purchases I'd have to make in OR to offset the lack of income tax in WA was way more than I spend in a year. Not just an average year but basically any year I don't buy a tricked-out laptop or a full room of furnishings.

Groceries (most of them) aren't taxed in WA and there are two sizable shopping centers just across the river in PDX. WA resident who shop there are supposed to report and pay use tax.

2

jamaicanmecray-z t1_iydyjra wrote

I definitely prefer not paying income tax. I don't buy all that much that's expensive (besides food, not taxed but hella expensive), so I haven't mapped it out but I'm pretty sure we're coming out way ahead

1

nolesrule t1_iydkta2 wrote

You will need to research how to file a partial year resident return with Oregon. However there may be W-2 reporting issues because it will show an incorrect split between incomes for each state. You should consult with a local tax preparer who who has regular experience dealing with this issue.

4

elmwoodtreesign t1_iydjrhh wrote

I’m not a tax professional, but I would think it would all get sorted out when you file your taxes. You will need to file with both states.

I live in one state and work in another. I file in both. I end up with a refund from the state I work in and a tax bill from the state I live in.

2

Fomention t1_iydrf94 wrote

Your tax filing will likely sort this out.

1