Hello All. Looking for some sanity checks on my 2022 state tax return. I am active duty and serving out of state (Oregon, home of record). I have not bothered to file the tax exemption forms since I joined so Oregon withdraws every month. Up until recently my wife and I have just filed as Residents and then claim all W-2 income under 319 "military pay" which effectively lowers our income to $0 not counting some basic interest income. We would then be returned all of the previously paid taxes. Good to go.
Well in 2022 I cashed out an investment I had which returned a net gain around $48K ( i was issued a 1099-B for this). I started filing state taxes like usual, as Residents, then claimed my Military Pay which left us with an estimated $0 return (they now keep the ~$3K paid throughout 2022, due to the reported capital gains I guess). We're bbviously miffed at not getting the money back so I started reading into Active Military and Oregon returns and came across some information which makes me second guess the whole Resident vs. Nonresident status we've been claiming.
https://www.oregon.gov/dor/programs/individuals/Pages/military.aspx
You're a nonresident for Oregon tax purposes if you meet all the following requirements:
My family and I meet the criteria above so should we have been filing as non residents this whole time?
When I trialed the change from Resident to Nonresident in H&R block, my return went from nothing to essentially the entire $3K I had paid over the year because 1. Military Pay still... and 2. it no longer counted the capital gains since it was earned outside of Oregon.
Obviously this is ideal for my family but is this a correct understanding of Oregon tax law and if so, do I now need to refile my previous taxes?
Note: my drivers license still reflects the address from my Home of Record. However it is not my residence, no mail is sent there and of course I have not visited Oregon in years.
Well in 2022 I cashed out an investment I had which returned a net gain around $48K ( i was issued a 1099-B for this). I started filing state taxes like usual, as Residents, then claimed my Military Pay which left us with an estimated $0 return (they now keep the ~$3K paid throughout 2022, due to the reported capital gains I guess). We're bbviously miffed at not getting the money back so I started reading into Active Military and Oregon returns and came across some information which makes me second guess the whole Resident vs. Nonresident status we've been claiming.
https://www.oregon.gov/dor/programs/individuals/Pages/military.aspx
Residents stationed outside Oregon
You're a nonresident for Oregon tax purposes if you meet all the following requirements:
- You didn't have a permanent residence in Oregon for yourself or your family during any part of the tax year.
- Your permanent residence was outside of Oregon during the entire tax year.
- You spent less than 31 days in Oregon during the tax year.
My family and I meet the criteria above so should we have been filing as non residents this whole time?
When I trialed the change from Resident to Nonresident in H&R block, my return went from nothing to essentially the entire $3K I had paid over the year because 1. Military Pay still... and 2. it no longer counted the capital gains since it was earned outside of Oregon.
Obviously this is ideal for my family but is this a correct understanding of Oregon tax law and if so, do I now need to refile my previous taxes?
Note: my drivers license still reflects the address from my Home of Record. However it is not my residence, no mail is sent there and of course I have not visited Oregon in years.