[sachintax0115]

Hi,
For the year 2010 I worked in both Oregon and CA. I received my W2 recently and wanted to file my taxes today. I found the entries are completely confusing. My federal copy is fine.

In my CA W2 I have all the income (CA+OR)reported. Box 1 to 6 are identical to Federal W2. In Box 16 I have my CA wages alone and in 17 I have my CA state income tax paid. In Box 18 I have Oregon Wages and in Box 20 it says ORWCW.

In my OR W2, I have boxes 1 to 14 blank. In Box 16 I have Oregon Wages and in Box 17 I have OR income taxes paid. In Box 18 I have my CA wages and in Box 19 I have my CA SDI. And in Box 20 says "SDI".

I'm going to use Turbo tax. Shed some light on how to manage these two.

[ebaines]

I assume that you were a CA resident for the entire year. First complete the OR state income tax form as a non-resident. It will require you to report both your OR wages and your full income, but you pay OR income tax only on the portion of your income that derives from OR. Then you file your CA tax as a resident. You report all income for the year, and calculate the tax based on your full income, but then take a credit for taxes paid to other jurisdictions (namely OR). The result is that you aren't double taxed by either state, but your tax bracket for each state is based on your full income. Turbo Tax handles this scenario quite well, as long as you are careful to tell it that you are a CA resident with OR non-resident wages.