Preparation of Oregon Tax Returns

[Lee B]

Oregon has now adopted rules similar to California.

The preparation of Oregon Tax Returns for residents or a business residing or located in Oregon

by preparers located outside of Oregon

is considered to be Oregon Income subject to Oregon Tax.

[BulldogTom]

Not a surprise.  But based on your earlier email they are not going to have out of state EA preparers anyways because they don't recognize our licensure.   I don't have any OR clients, and I guess I never will.   I will send anyone who asks to you Lee.

Tom
Longview, TX

[jklcpa]

Do you know if a final PY return for a taxpayer that moved from OR be considered a "resident" return for this purpose?

[Lee B]

12 minutes ago, jklcpa said:

Do you know if a final PY return for a taxpayer that moved from OR be considered a "resident" return for this purpose?

My understanding is that it would be based on where the client is residing at the time the return was prepared.

[Sara EA]

This might not be as bad as it sounds.  The income threshold to file a return for OR nonresidents is about $2,700 single and $5.500 MFJ.  That one OR client who pays you $500 is not going to trigger your filing in OR.  Or is there some other rule governing tax preparers?  EAs don't have to worry about it at all since those who reside in other states can't prepare OR returns anyway.  So if you're a CPA preparing an OR return, be sure to keep your price at $5,495.

[Lee B]

16 hours ago, Sara EA said:

This might not be as bad as it sounds.  The income threshold to file a return for OR nonresidents is about $2,700 single and $5.500 MFJ.  That one OR client who pays you $500 is not going to trigger your filing in OR.  Or is there some other rule governing tax preparers?  EAs don't have to worry about it at all since those who reside in other states can't prepare OR returns anyway.  So if you're a CPA preparing an OR return, be sure to keep your price at $5,495.

However, depending on where your client resided your income could be subject to Self Employment Tax from a Transit District or a City.

Over $400 of Self Employment Income related to a client living in Eugene would require the filing of a Lane Transit District SE Tax Return

and the filing of a City of Eugene SE Tax Return.

[Lee B]

On the other hand, these rules strongly suggest that if I prepare any tax returns for residents of Nevada or Washington (states with no income tax)

then that income would not be Oregon Income or subject to Oregon Tax. Hmm