Hi,
Last year I moved from Portland,OR to San Diego,CA. I fulfilled both distance and time required for claiming moving expenses. However I made a mistake in filing moving expenses. I filed moving expenses correctly on Federal and in CA. And by mistake I filed moving expenses in OR too. In OR if you move out of the state you can't claim the moving expenses. I got a letter from OR Department of Revenue.

I have to amend my OR tax return as I have to remove my moving expenses from my exemptions. However, that will not affect my Federal and CA tax returns.
My questions are:
1. Do I have to amend both Federal and CA tax returns even though there aren't any changes?
2. How much is the penalty I'm looking at for this mistake?

Thanks,
Sachin

No, you don't need to amend the other 2 returns. The fact that you will likely have to pay a bit more tax to OR in 2011 to make up for the error on your 2010 return may have an impact on your 2011 federal return, but has no effect on your 2010 federal return. Same thing with CA.

As for how much penalty you will owe - it depends on the amount of tax owed and when you pay it. Didn't the letter you received from OR tell you this? States typically charge an interest rate of around 1 or 2% per month for late payment of taxes.