The credit for taxes paid to another state is automatically calculated in your account when you add a Nonresident return to your already created resident _______ return if you pay taxes to both _______ and another state.
If you were a full-year Oregon resident: You may claim the credit on your Oregon return only if you pay tax on the same income to both Oregon and a state other than Arizona, California, Indiana, or Virginia.
If Oregon and another state tax the same income, you may be eligible to claim a credit for taxes paid to the other state. If you have income that qualifies for the credit for taxes paid to another state and you are a part year resident, you must manually add this into the program. You can do this by following this path:
- Click State on the left side menu
- Click the three dots to the right and select edit
- Click "Begin" on Credits
- Click "Begin" on "Credits for Taxes Paid to Another State"
- Click + Add State
- Fill in the required information
If you are a full-year Oregon resident with income that is taxed by Arizona, California, Indiana, or Virginia, you must claim the credit on the nonresident return that you file with that state; don't claim the credit on your Oregon return.
This credit is only for state income tax. You cannot claim this credit for city or county income tax, sales, tax, alternative minimum tax (AMT), property tax, or other state taxes that aren't based on income. Your credit for a full-year resident is the smallest of the following:
- Your Oregon tax after all other credits; or
- The tax you actually paid to the other state.
Please note: You will need to follow these steps for each state you need to add.
For more information on this credit, please see the Oregon Secretary of State website.