Special considerations for military personnel filing in Oregon
As the personal income tax return filing deadline approaches, there are a few things military personnel stationed in Oregon or those stationed outside of Oregon who claim Oregon as their home of record should keep in mind.
“Oregon residents stationed outside the state and nonresidents stationed here in Oregon may not need to file an Oregon tax return,” said Megan Denison, policy and systems manager for the Personal Tax and Compliance Division.
Nonresident military personnel only need to file in Oregon if they received non-military Oregon-source income, or if Oregon taxes were withheld from their military pay, Denison explained. Oregon-source income includes wages from other employment in Oregon, or earnings from a rental property or sale of real estate in Oregon. If Oregon taxes were withheld from military pay, nonresident military personnel can claim a refund of those withholdings.
Wages earned by military spouses or registered domestic partners (RDP) who only moved to Oregon because of a military assignment are exempt from taxation when both spouses are Oregon nonresidents, Denison said. This doesn’t apply to spouses who are also in the military. As with military personnel, spouses or RDPs can file an Oregon return to claim a refund if Oregon taxes were withheld from their exempt wages, she added.
Additionally, out-of-state wages and income earned by military members and spouses or RDPs who are Oregon residents, but live outside the state because of a military assignment, might be exempt from Oregon tax.
Oregon residents stationed outside of Oregon are considered nonresidents. Their military pay isn’t taxed by Oregon if they’ve maintained Oregon as their home of record and they meet all of the following criteria:
Did not have a permanent residence in Oregon for themselves or their family during any part of the tax year.
Maintained a permanent residence outside of Oregon.
Spent less than 31 days in Oregon during the tax year.
Military personnel may also qualify for military pay subtractions on their Oregon personal income tax return. Subtractions are available for:
Pay earned while stationed outside of Oregon.
Guard members and reservists stationed away from home for 21 days or more.
Other taxable military pay after removing other subtractions, up to $6,000.
For more filing considerations for military personnel, see the Personal income tax overview section at www.oregon.gov/dor/personal.
Visit www.oregon.gov/dor to get tax information, check the status of your refund, or make payments. You can also email [email protected] or call 503-378-4988 or 800-356-4222 (toll-free). The department receives a lot of phone calls during tax season so you may experience long wait times.
— Department of Revenue important announcement
