Remote work has become increasingly popular in recent years, as more and more people are able to take advantage of the flexibility and freedom that it offers. As such, many states have implemented taxes on remote workers to collect a portion of the income they earn while working away from home. Oregon is one such state that has recently implemented a remote work tax, and it is important for remote workers to understand what this means for them.

What is the Oregon Remote Work Tax?

The Oregon Remote Work Tax is a new tax that applies to remote workers who are employed outside of the state. This tax applies to all remote workers earning more than $10,000 annually from an employer located outside the state of Oregon. The tax rate is 0.75% of the gross income, and it is due at the end of each calendar year.

Who is Affected by the Tax?

The tax applies to any remote worker earning more than $10,000 annually from an employer located outside of the state of Oregon. This includes employees working remotely from another state, as well as those who are employed by a company located outside the state. It is important to note that this tax does not apply to those who are self-employed or who are earning income from investments.

Exemptions From the Tax

The tax does have certain exemptions that can help reduce the amount of tax owed. For example, those who are earning less than $10,000 annually are exempt from the tax. Additionally, those who are eligible for a reciprocal state income tax agreement between Oregon and another state may be able to reduce their tax liability.

How to File the Tax

The tax must be filed on Form OR-FWT-1, which can be found on the Oregon Department of Revenue website. The form can be completed online, or it can be printed and mailed in. The tax must be paid by April 15th of each year.

Conclusion

The Oregon Remote Work Tax is an important consideration for remote workers in the state. It is important for remote workers to understand the tax and to ensure that they are in compliance with the law. By understanding the tax, remote workers can ensure that they are properly filing their taxes and paying any taxes that are due.