TaxEngine - Basic Instructions for Preparing and Filing Oregon Tax Returns
In preparing the state tax return, most information will carry from the federal return. The income and withholding will carry to the state from entries on the W-2. Be sure the state information has been entered on the W-2 input screen. Other income items will carry from the federal input according to the state designated.
If you have additional information to enter, click on the 'tax forms' button. Input for all the state forms is available.
State School Fund - If there is a kicker refund, do you wish to donate your kicker refund to the State School Fund? If so, check the box. The fund if used for public elementary and secondary education. If you check the box, any kicker refund that you would have received in 2008 based on your 2007 Oregon income tax will be sent directly to the State School Fund. If you check the box, you cannot change your decision for the 2007 tax year.
Working Family Child Care Credit
This refundable credit is available to low-income working families with qualifying child care expenses. The basic information will carry from the federal Form 2441. The relationship of the caregiver to the child needs to be entered for Oregon. If there are other differences between the federal Form 2441 and the Oregon WFC, click on the tax forms button at the top of the screen and then Oregon-WFC. All the information required by Oregon can be entered there.
Part-Year Resident
You are considered a part-year resident of Oregon if, during 2007, you moved your permanent home into or out of Oregon. You must pay Oregon income tax on income you earned, received or accrued while living in Oregon.
TaxEngine will automatically allocate the income based on the information entered on the federal return. Be sure to enter the state information on the federal W-2 input form.
Nonresident
If you are a resident of another state and worked in Oregon during 2007, you are required to file a Oregon income tax return and are required to pay Oregon income tax on salary wages and other employee compensation for work performed in Oregon.
If you are a Oregon resident but worked in another state, all of your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity.