UNDERSTAND YOUR RESIDENCY
It may seem straightforward to determine if you are an Oregon resident, but when it comes to determining residency for tax purposes, it can get a little dicey. Your residency status in Oregon determines which form you use to file your taxes.
Full-year resident: You are a full-year resident in Oregon if you live in the state during the entire course of the year. Or, if you are living outside of Oregon, but all of the following apply: you think of Oregon as your permanent home; your core financial, social and family life are in Oregon; and you plan on returning to Oregon after you are away. The Oregon Department of Revenue says an individual with a mailing address in Oregon with a valid Oregon driver license also may be considered an Oregon resident for tax purposes.
Part-year resident: It is also possible to be considered a part-year Oregon resident if you moved into, or out of, Oregon during the tax year.
Nonresident: You are considered a nonresident if your permanent home is outside of Oregon all year. However, even if you have a permanent residence outside of Oregon but you worked in the state, the income you earned is taxable.
CHECK YOUR DEPENDENCY STATUS
If your parents claim you as a dependent, you cannot claim yourself. If someone else claims you as a dependent, it affects both your exemptions and standard deduction, which is a dollar amount that reduces the amount of income that is taxed. The Oregon Department of Revenue encourages students to discuss their dependency status with anyone who could potentially claim them. The department says it is a common mistake among students to claim independency when someone else is actually providing them with enough assistance to claim them as a dependent. To find out if you should claim yourself, visit this website.
DON’T WRITE OFF YOUR TUITION AND FEES DEDUCTION TWICE
A common mistake made among student tax filers is to deduct their tuition and fees on both their federal tax returns and their Oregon tax returns. The thing to remember here is simple: either/or, not both.
MAKE SURE YOU DON’T OWE MONEY
Because most students work in a W-2 situation, it is likely that many will be in a refund situation for their taxes. However, if you think you may owe tax money, the Oregon Department of Revenue says it is essential to have your taxes in by the April 15 deadline. If your taxes are not in by deadline and you owe money, you will be subject to penalties and interest.
FILE ELECTRONICALLY
The Oregon Department of Revenue says filing online limits the errors that students make because the online system asks specific questions to keep people on track. You can file your taxes online for free if your annual income earnings are less than $56,000 or if you younger than 20 years of age.
Resources:
More on residency guidelines
www.oregon.gov/DOR/
Find your form
www.oregon.gov/DOR/PERTAX/faq-qa_forms.shtml
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