Filing taxes in two states can be difficult, but this information should help you figure out what return you need to file where
For most people, filing a state tax return is just a brief addendum to filing your federal return. Your tax-filing software just transfers your information to your state’s return and you’re done in about five minutes.
But what if you moved during the tax year? What if you worked in a state other than the one where you lived? What if you worked in multiple states? Suddenly state taxes become a lot more complicated.
Basically there are three different types of state tax returns that you need to worry about:
- Resident
- Part-Year Resident
- Nonresident
As a general rule, you have to file a resident tax return in the state where you lived, a part-year resident return in any state you moved to/from, and a nonresident return in a state where you earned money but didn’t live.
Resident Return
A resident return is the return you have to file in the state where you are a resident. This return will tax you on all of your income, no matter where it was earned.
For most people this is very simple – the state where you are resident is the one where you live and work. But for people whose lives involve multiple states, things can get a little complicated. If you have a complex situation, the first step to filing state taxes is figuring out where you are a resident.
Every state has different requirements for who qualifies as a resident for tax purposes. You need to visit the websites of the tax authorities of the states in question to figure out where you are a resident.
As a native New Yorker, I’m going to use the Empire State as an example. You can find the definition of a resident here on the Department of Taxation and Finance website. Most other states will have pretty similar standards if you want a general idea of what constitutes a resident.
You should note that there are nine states without an income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you are resident of one of these states, you don’t need to file a resident tax return.
Part-Year Resident Return
A part-year resident return is for people who moved during the tax year. If you were a resident of one state for part of the year and then a resident of another state for part of the year, then you need to file a part-year resident return in the first state and a part-year resident return in the second state.
A part-year resident return taxes you on all of your income for the portion of the year that you were a resident of that state. Let’s say you started the year living in Illinois. Then in July you moved permanently to New York. You would then have to file a part-year tax return in IL that taxes you on all of your income you earned during the first six months of the year. Then you will have to file a part-year resident return in New York that taxes you on the income you earned during the last six months of the year.
Nonresident Return
You need to file a nonresident return for any state (other than the state where you live) in which you earned money. This nonresident return will only tax you on the income you earned in that state.
Here’s an example. Let’s say you live in New Jersey, but you work in New York. First you have to file a resident return in NJ. Then you have to file a nonresident return in NY and pay taxes on the income you earned there.
Don’t worry about being double-taxed: when you file the state returns you will have the opportunity to claim a credit for the taxes that you’ve already paid to another state through withholding. The states will then settle accounts among themselves.
You also have to file nonresident return for any state that’s taxes were withheld from your paycheck. Normally you only have to file taxes in the state(s) where you were a resident and where you earned money.
But sometimes HR departments goof up and withhold taxes for a state you neither lived or worked in. In this case you need to file a return just so you can get that money back in the form of a refund.
Take note: it doesn’t matter where your company is located. If you didn’t live in a state, and you physically did not work there, you don’t have to file a return there just because the company paying you is based there, although you do if they accidentally withhold taxes for that state. If this happens, ask them to stop withholding taxes in that state so you have one less return to file!
Hopefully this information will give you some basic guidance when it comes to filing state taxes. You can file your state returns right here on RapidTax after you finish your federal return, or by themselves.
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Tags: state taxes
This entry was posted on Friday, January 18th, 2013 at 4:14 pm and is filed under Tax Tips.
my wife lives in our home state and worked short time in 2012, i work in a different state but fully support her financaily.the state i work taxes is taken out, do i have to pay more taxes becasue my family in 1 and i am in another state? where do i file?
Hi Amy,
You need to file a tax return in the state where you are a resident and then a nonresident return in any other state where you earned money. You refer to the state where your wife lives as your “home state” which gives me the impression that you are still a resident there. If that’s the case you and your wife can file a resident return in that state, which will tax you on all of your income no matter where it was earned.
But you also need to file a nonresident return in the other state where you earned your money. This return will tax you only on the income you earned in that state. Don’t worry about being double-taxed. When you file your resident return you will be able to claim a credit for the taxes that were withheld for this state. The state where you work will then likely transfer some of that money over to the state where you live.
Please I live in New York and I worked at WhitePlains, Connecticut state. Where do I file my tax? also at the end of tax return should I pay any interest? Thanks
Hi Kwame,
First of all, make sure that you actually worked in Connecticut. If you worked in White Plains, that sounds like you were probably working in NY state.
You definitely need to file a NY resident return that will tax you on all of your income no matter where it was earned. If you worked in CT, then you also need to file a nonresident CT return that will tax you only on the income you earned in CT.
Hi Kwame,
First of all, make sure that you actually worked in Connecticut. If you worked in White Plains, that sounds like you were probably working in NY state.
You definitely need to file a NY resident return that will tax you on all of your income no matter where it was earned. If you worked in CT, then you also need to file a nonresident CT return that will tax you only on the income you earned in CT.
Also, you will only have to pay interest if you fail to pay your tax liability by the deadline.
My husband got a job in Arizona and we live in New Mexico. He is the primary bread winner although I work in New Mexico he is a resident of Arizona and comes home every other weekend. Where do we file resident tax and non resident tax?
i work the hold year in nj but i was a resident in ga and paying taxes, but i moved to nj in july i star paying tax in nj how i do my faling and the gross it’s different of the case 1 should i put the gross amount or the amount in case 1
Hi Eileen,
Even if you and your husband file a joint federal return you can file separate state returns. He should file a resident Arizona return if he is a resident there and you should file a resident New Mexico return if you are a resident there.
Hi Gus,
If you moved in the middle of the year, you should file a part-year resident return in GA on all of the income you earned for the portion of the year that you were a GA resident. Then you should file a part-year resident return in NJ that taxes you on all of the income you earned for the potion of the year that you were a NJ resident.
I live in Indiana and work in Illinois. I believe the states at one time had reciprocity but am not sure if that is still the case. My employer only deducts for Illinois taxes. Should they also be deducting taxes for Indiana? Thanks
I own a home in Ca. but worked and lived in West Virginia from Jan. thru Oct. 2012. I rented at first but then bought an r.v. to save money. What living expenses can I deduct ? All my withholding was from w.v.
Hi Regina,
I think the reciprocal agreement between Illinois and Indiana was rescinded in the ’90s. Give your situation, you will have to file a resident return in IN that taxes you on all of your income, and then a nonresident return in IL. You will be able to claim a credit on your IN return for the taxes you’ve paid to IL through withholding. Hopefully IL will then transfer some of that money to IN. If you don’t end up owing either state any money, then I would say there’s probably no reason to have more money withheld, but if you end up owing money to one of the states then you might ask your employer to withhold IN taxes.
Hi Andy,
I’m not aware of any living expenses that you can deduct, however you may be able to deduct some of your travel expenses.
Hi–
My husband and I lived in MA for 5 months. I lost my job and collected unemployment in MA. I then moved to NY where i still collected unemployment from MA, while my husband worked in MA during the week and came to NY on the weekends. I had no income in NY for the year. My husbands income from the year was totally in MA. Do we file both NY and MA returns?
At the beginning of 2011 my brother interned in MD while living in PA. Late in 2011 he moved to MD and started a full time job for the same company. Somehow his state taxes paid didn’t get changed from PA to MD until partway into 2012. Now on his 2012 taxes, which he was a full time resident of MD, he paid a portion to PA. How do we do his state/s return?
Hi Melissa,
The crucial question here is whether you became a permanent resident of New York. It sounds like your move was a permanent one, in which case you are probably now a NY resident (This page from the NYS Dept. of Taxation and Finance should help you make that determination: http://www.tax.ny.gov/pit/file/pit_definitions.htm#resident).
For now let’s assume that you are. I should also let you know up front that even if you and your husband file a joint federal return, you can still file separate state returns. In your case this might be the best thing to do.
Since you were a Massachusetts resident for five months you need to file a MA part-year resident return, Form 1-NR/PY. But then because you continued to collect MA unemployment (which is considered MA source income) once you moved to NY, you also need to file Schedule R/NR. Finally you have to file a NY part-year return because you were a resident there for the second half of the year.
It sounds to me like your husband remained a MA resident for the entire year so he should probably just file a MA resident return.
Hi Marcus,
If he was a resident of Maryland for the entire year, then he only owes taxes to MD. Under normal circumstances he would only have to file a MD resident return and be done with it. However, because taxes continued to be held for Pennsylvania, he needs to file a PA nonresident return in order to get that money back. On his MD return he should also be sure to claim a credit for taxes paid to PA. Basically what will happen in PA will transfer that money to MD and then your brother will be responsible for paying the difference or will get the difference back as a refund.
Thanks!
Hi, I have some questions about state tax return.
in 2012, I am a full-year resident of NY state and got W-2 in NY. However, my wife is a part-year resident of NY (another is OH), and got two W-2s, one from NY, one from OH.
So for our NY state tax return, are we full-year resident or not? If yes, where in state tax form can I deduct my wife’s OH income?
Thank you.
Hi Feng,
Even if you and your wife file a joint federal return you can file separate state returns. In your situation this might be the easiest thing to do. You should file a New York resident return and then your wife should file an Ohio part-year resident return and a NY part-year resident return.
Hi Tax Advisor,
I am a resident in MD but did a 3-month internship in CA. My W-2 from CA shows the employee address as my address in MD.
Am I considered as a non-resident in CA to fill the CA state tax?
Hi Teo,
Yes, I think that you should file a California nonresident return just on the income you earned for those three months. You can check the CA definition of residency just to be sure but I’m pretty sure you’ll be considered a nonresident.
Hi,
My employer withheld tax for wrong state and i was living and working in another state. My income was not much and i had to keep moving between those 2 states. I am international personal and due to some restrictions, I cannot avoid either of taxes for same time period…can we pay for 2 states for same time period or is that wrong by law.
Hi Tax Advisor,
I lived in Washington State, but worked in Oregon State up until September 2012. In September 2012, I moved to Kentucky, where I currently reside. Do I need to file in all three states?
Thank you!
Hi Josh,
First and foremost you need to file taxes to the right state – the one where you were living and working. This is the state that you actually owe money to. Then you need to file a nonresident return for the ‘wrong’ state, the one your employer mistakenly withheld taxes for. You don’t actually owe money to that state but you have to file in order to get back what’s been withheld.
Hi Stephanie,
Lucky for you Washington State has no income tax, so you only have to file in two states. First you need to file a nonresident return in Oregon which will tax you only on the income you earned in OR. Then you need to file a part-year resident return in Kentucky which will tax you on all of your income for the period September-December 2012.
Mr. Tax Advisor,
My wife and I live in SC but she works in NC. We are filing the federal return jointly and are itemizing our expenses. I pay the majority of the itemized expenses. I assume she will file a non-resident 1040 in NC and a resident in SC. My question would be do transfer the total itemized expense we filed on on federal return to the NC and SC 1040′s or just one of them? Do I have to try and determine a portion of the itemized expense that she directly paid for and only claim those?
Hi Travis,
I think the best thing for you all to do is just file married filing jointly on your South Carolina return and your North Carolina return. That makes things much simpler and will then allow you to apply a credit for the taxes your wife paid to NC to your SC return. Even if you file a joint NC return, it will only tax the income your wife made in NC.
Thanks Advisor, Now the thing is I have filed for both states and paid the taxes to both for same time period, which were not much, so I wanted to ask if this is wrong by law, or I need to send an amendment to one state.
Your reply is highly appreciated
Hi Josh,
No, it’s not wrong. It’s perfectly normal to owe taxes to two different states. You will definitely owe money to the state where you are a resident and then you will also owe money to any other state where you earned money. The way you described your problem made it sound like taxes were mistakenly withheld for one state. When you filed that state’s return, they should have transferred some of that withheld money to the state where you did owe, or given it back to you as a refund. Based on what you’ve told me it doesn’t sound like there’s any reason to file an amended return.
Hi Tax advisor,
My employer in Ohio sent me to their New Jersey office for seven weeks last year to fill a temporary need in that office. I returned home each weekend. I only received one W-2 and all the state taxes are credited to Ohio. Do I need to file a non-resident tax return for New Jersey? And should my employer have handled this differently? Thanks in advance.
Hi David,
Yes, you probably do need to file a New Jersey nonresident tax return. This will tax you only on what you earned in New Jersey. You’ll be able to claim a credit for the taxes you paid to Ohio through withholding and they should transfer some of that money to NJ. Ideally your employer should of withheld state income tax for NJ but since it was only seven weeks it probably wasn’t worth the trouble.
Hi,i live in New York for the past 3 years and I never file NY tax,cause my paycheck was a NJ address and my job in NJ.So last years I have to get my pay check with NY address for about 3 months.I file my tax but I forget to mention to tax preparer I live only 3 months on my pay check NY address.So now I want to make an emend and try to get my partial money back .Do you think NY State gonna ask me for those 3 years I didn’t report my income ??????I only file a tax in NJ cause my paycheck was NJ address and my job in NJ .THANK YOU VERY MUCH
Hi Maurice,
Just to be clear, if you are living in New York, and you qualify as a resident, you must file a New York tax return regardless of where you work. New York has every right to demand that you file those three years as long as they can prove you were a resident. Whether they will demand those returns if you attempt to amend your return, I can’t say. Their operation may not be that sophisticated. But you should know it’s a possibility.
Hi,
I lived and worked in VA for half of the year, then I got married and moved to MD. (My husband lived and worked in MD the entire year.) I earned NO income once I moved to MD. I understand my husband and I must file our state returns separately. He will file MD and I will file a part year in VA. Do I have to file anything for MD since I earned no income while I was a resident there?
My husband and I and our 2 kids have lived and worked in MN for 13 years. I am self employed in MN. In Sept 2012 my husband got a new job in WI. He stays there during the week (in an apartment he rents) and commutes home to MN on the weekend. Whis state is considered his resident state? How do we handle the state taxes for this situation? Also, are there any expenses we can deduct for his weekend commutes or for the apartment he rents? Thanks in advance for any help and info you can provide.
Hi Sarah,
As usual with taxes, it’s a little more complicated than that. First off, you definitely need to file a part-year resident return in Virginia. There’s no ambiguity about that.
As for Maryland, however, you can essentially choose whether to file a joint return or file separately. In some ways filing jointly may be the easiest thing (since I’m assuming that you’re filing a joint federal return). Here’s what the MD return instructions have to say about it: “Complete the Part-year/MILITARY area on the front of Form 502…Married taxpayers with different tax periods filing a joint Maryland return should enter a “D” in the box, follow the remainder of this instruction and write “different date periods” in the dates of residence area.” You can find more on page 16: http://forms.marylandtaxes.com/12_forms/resident_booklet.pdf.
Even if you decide to file separately, I think you still may be required to file a return. You have to file a MD return if your MD gross income is above $3,800. MD defines MD gross income as your federal gross income + MD additions. I’m assuming that your federal gross income was greater than $3,800 so you probably would have to file a MD return. Part-year residents must show all of the income reported on their federal return, regardless of when or where it was earned. However, they are then permitted to subtract income received when not a resident of MD. So you wouldn’t end up owing any tax, but you would probably still have to file a return, if that makes any sense.
You might want to talk to a MD tax professional, but I would suggest that you look into filing a joint return and just marking that you weren’t a resident of MD for that portion of the year.
Hi Susan,
You should definitely check out the residency requirements of both states to make a determination, but I would say he’s a MN resident and a nonresident of WI, especially if he hasn’t changed his voter registration, auto registration, driver license, etc. If this is the case, he would have to file a resident return in MN (ostensibly a joint return with you) and then a nonresident return in WI. The deductions are a whole other can of worms that I’m not going to get into in this comment, but I will say that you can only deduct travel expenses associated with a temporary work assignment. If it’s an indefinite work assignment you can’t deduct anything. Take a closer look at this IRS page for more info: http://www.irs.gov/taxtopics/tc511.html.
Hi!
Can you give me some advice?
I lived in New York for half of the year and then went to colorado for work the other half of the year. Now I was charged tax on both states. First will I get a portion of that money back since every paycheck since moving to colorado included both New York and colorado state tax? Also do taxes become more expensive if you lived in two states through the year or do they simply just divide it? Also my wife and I weren’t married in the beginning of the year in new york but due to the common law in colorado, we would like to file as married. So if you become married in the middle of the year, does it count as the whole year on taxes?
Thank you
Thank you!! Your answers were very helpful!!
Hi my husband works in Rhode Island and we live in Massachusetts. I filed our taxes online last night and we are paying in Ma and receiving from Rhode Island. He thinks something is wrong… Does this sound right or did I do something wrong?
Hi David,
1) Assuming your move to Colorado was a permanent one, you should not have had New York tax withheld after you moved there. If your employer is still doing that tell them to stop. If your move was NOT permanent and you are still a NY resident then it’s correct that NY taxes were withheld. If you are now a CO resident, you will have to file a part-year resident return in NY and then a part-year resident return in CO. Yes, you should either get some of that NY tax that was wrongly withheld back as a refund or they might transfer it to CO if it turns out you owe there.
2) Taxes could be more expensive if you lived in two states, if you moved from a low-tax state to a high-tax one (imagine moving from Texas to New York for example) but since you’re moving from a high-tax state to a lower-tax one, it will probably end up being a lower tax burden overall than if you had stayed in New York all year. Also note that on each return you will be able to claim a credit for taxes paid to the other state (through withholding) to ensure that you are not double-taxed.
3) When it comes to taxes you are considered married for the whole year as long as you were married on December 31st. If that’s the case, then you should file jointly. The only scenario in which you shouldn’t do this is if you two were residents of different states for different periods of time. For example, if your wife moved from NY to CO two months before you did (or never even lived in NY) then you should file a separate NY return.
Hi Pam,
I really can’t tell you if this sounds right or not because I have no idea what his withholding was like for the two states. All I can tell you is that this doesn’t send up any red flags – it’s entirely possible. Likely not enough was withheld for MA (if any was withheld) and more than enough was withheld for RI.
Hi,
My husband and I are residents of OR but moved to CA for seasonal work but never filed for residency because we are going to move back to Oregon. I have W-2 forms from both states but I don’t know how to file taxes for 2 states. I have done my federal taxes already but I’m stuck when it comes to state. Help? Thank you.
Hi Beth,
If you and your husband are still residents of Oregon then you need to file an OR resident return. This will tax you on all of your income, no matter where it was earned. Then you two need to file a nonresident return in California. This will tax you just on the income that you earned in CA. Don’t worry about being double-taxed: you will have the ability to claim a credit for the taxes you paid to the other state. I know this sounds complicated but when you use an online program like RapidTax all you have to do is input the information and it’ll fill everything out for you.
Hello,
I currently work in two different places. My work office is located in California where there is state income tax. My wife lives in Nevada (due to schooling) and my company allows me to travel back and forth from California to Nevada. Nevada has no state income tax. and I calculated that I worked remotely in Nevada about 40% of my time last year.
Is it possible to claim non resident in California if I worked remotely 40% of the time? How do I go about doing that? Thanks.
Hi Mike,
It’s a little more complicated than that. You can’t simply claim you’re no longer a California resident, you actually have to not be a CA resident according to their definition, which you can find here: https://www.ftb.ca.gov/forms/2011/11_1031.pdf. I don’t know all of the particulars of your situation, but I would guess you’re still a CA resident.
Hi,im a lil late on filing taxes but i work in svand nc but im a resident of sc how do i file? I also have 2 jobs 1 in each staze..so do i combine the two or what?
Hi Tammy,
Don’t worry about being late. You can still e-file your returns right here on RapidTax and if you’re due a refund you won’t even have to pay any penalties.
As for your state returns, you need to file in both South Carolina and North Carolina. You should file a resident return in SC. This will tax you on ALL of your income, so that will include both of your jobs in both states. You should file a nonresident return in NC. This will tax you only on the income you earned in NC. But when you file this return, they will likely ask you to enter your total income (to help determine your eligibility for certain credits, deductions, etc.) and then your NC-source income. This is the one you will actually be taxed on.
My spouse had income from MD until the mid of the year. After marriage she moved and joined me in NY and she does not have income here. I would appreciate if you can suggest on where she needs to file. Does she owe tax to New York as it is now her residence; does she even have to file at NY….very confused. Thank you.
Hi Sakar,
I’ve actually written another post on just this topic: http://www.rapidtax.com/blog/how-to-file-taxes-when-you-and-your-spouse-move-to-new-york-at-different-times/.
In this case I would say that your wife definitely has to file a part-year Maryland resident return. Then she (probably) has to file a New York part-year resident return as well. (See here for more info on who has to file: http://www.tax.ny.gov/pit/file/residents.htm). However, since she didn’t earn any income once she moved to NY she probably won’t have to actually pay any tax. She could also choose to file a joint return with you, but in that case all of her MD income would be taxed by NY when in fact it doesn’t need to be taxed by NY.
I don’t reside in California but when I was younger I lived with my mother. I changed my address when I moved to Arizona now it’s 2.13 and I just got a letter in the mail I indicating that I need to file my 2010 tax return, weird… What do I do. I’ve already told my human resource department a long time ago that I reside in Arizona. Please help me with advice.
California is requesting for me to file my 2010 tax return
I was 22 when I lived with my mom in California but I’m now 36.
Hi Rachel,
If you’re not a California resident, you need to get in contact with the CA Franchise Tax Board and explain to them that you are not a resident. They may ask you for evidence, such as Arizona driver’s license, voter registration, utility bills, etc. to prove that you really do live in AZ.
Another thing to keep in mind – did you earn any income in CA during 2010, even though you were living in AZ? If so, you do have to file a nonresident CA tax return.
If I am not working for years and living in PA as a full time resident for 9 years and my
spouse gets a full time job in Connecticut and needs to rent an apartment and come
home weekends how does the duo state taxes work here. Plus, our child will
go to PA full time school and me staying home in the PA home as the main residense.
Otherwise, renting an apartment to work in Connecticut during the week and
keeping our same PA home residense. How doe the state taxes affect us and
how do you suggest we file? OR handle this the best way?
Thank You,
Kathy W.
Hi Kathy W.,
Okay, this is a pretty difficult situation and I highly suggest you sit down with a tax professional who can take a look at your situation in detail. That being said, the most important part of figuring this out is determining where your spouse is a resident.
Take a look at the definitions of residency in the two states and see which one your spouse fits with the best.
CT (on page 7): http://www.ct.gov/drs/lib/drs/forms/2012forms/incometax/ct-1040nrpybooklet.pdf
PA: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CC4QFjAA&url=http%3A%2F%2Fwww.portal.state.pa.us%2Fportal%2Fserver.pt%2Fdocument%2F629012%2Frev-611_pdf&ei=gue1UZubHaHA4AP-mYDoCA&usg=AFQjCNHvQU5A6jLSDgUxWr7Zjf0hVO0rww&sig2=yqw4XT5gDK4zCGk-q_nkJg
If your spouse is a PA resident, you’ll have to file a resident return there (jointly with you probably) and a nonresident return in CT. If your is a CT resident, you two should file separate state returns.
Hope that helps, but again, I suggest sitting down with a tax professional because this is a particularly tricky residency call.
Hello, please guide me…. Husband will start working in Portland however, he will travel overseas 50% of his time. I work from home and would benefit living in WA to avoid state income tax being withheld on my salary (9.9% bracket). Will hubby have the same benefit of paying OR income tax on only 50% of his salary? My question is – if he travels overseas say 180 days a year – does he pay taxes on those 180 days income since he did not drive and worked at his desk in Portland? Can he pay WA taxes as resident and non-resident tax to OR on 185 days of work. (not considering weekends, etc, just trying to simplify my question)
Thank you for any guidance! AC.-
Hi AC,
If you guys moved to Washington and became residents there, then you personally would be able to avoid state income tax entirely, as you would live and work completely in WA, which has no income tax. Obviously this would be a pretty big benefit.
Your husband, however, would still have to pay Oregon tax as long as he is physically doing work there. If you do move to WA, he would not have to pay state income taxes on all the work he does overseas. He would just have to pay OR tax on the work he actually does in OR. Obviously I’m not acquainted with every aspect of your financial situation, but it sounds to me like you stand to gain quite a bit (at least on the tax front) by moving to WA.
Many thanks! So we would complete tax forms as WA residents and then complete a 40P for the 1st year and a 40N for the following years. for OR income. Which form would we use to show the breakdown of his days at the office and days overseas? Many many thanks for your help!
Hi AC,
Well the great advantage of living in Washington is that they have no income tax, so you won’t have to file anything there. You’re correct about Oregon. You would have to file a 40P when you move and then a 40N for every year after that. On the 40N you’re only supposed to pay tax on your ‘Oregon source’ income which can be a little tricky to figure out, especially if your husband is a salaried employee. I would just take his overall salary from that OR company and then multiply it by the % of the year that he actually worked in OR. For example, if he worked in OR 185 days out of the year his OR source income would be 50% of his salary.
Note that in the year that you move, some states require you to file both a part-year resident return and then a separate nonresident return on the OR income you earn after you move. I don’t think OR is one of those states, I think you should be able to report everything on the 40P but I’m not 100% sure. You should try calling the Dept. of Revenue or talking to an OR based tax adviser just to make sure.