Notice Tax Question

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THE HCP

NorthEastPortland'sFinest
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The wife is in the middle of looking for new jobs.(Enter some crude joke here)

Always worked in the state of Oregon. Possible job opening in The Couv. What does this mean about working in Washington but living in Oregon?
PROS….. CONS?
 
The wife is in the middle of looking for new jobs.(Enter some crude joke here)

Always worked in the state of Oregon. Possible job opening in The Couv. What does this mean about working in Washington but living in Oregon?
PROS….. CONS?
It’s probably a good thing. WA doesn’t have a state income tax.
 
The wife is in the middle of looking for new jobs.(Enter some crude joke here)

Always worked in the state of Oregon. Possible job opening in The Couv. What does this mean about working in Washington but living in Oregon?
PROS….. CONS?

She shouldn't have to declare most of her tips.

Washington strip club laws have historically banned alcohol sales due to a "lewd conduct" rule, making it the only state with this restriction, but recent legislation (Senate Bill 6105), the "Strippers' Bill of Rights," aims to change this by improving dancer protections (security, fees, training) and allowing clubs to apply for liquor licenses if they comply with safety standards, potentially revitalizing the industry.


Key Changes from SB 6105:

  • Alcohol Sales: The primary change allows clubs to serve alcohol if they meet new requirements, ending the long-standing ban that hurt profitability and safety.
  • Dancer Protections: Mandates panic buttons, security guards, training on harassment/trafficking, and limits fees clubs can charge dancers (max $150 or 30% of earnings).
  • Security & Reporting: Requires security personnel and reporting of customer violence/criminal behavior, creating safer environments.
  • Liquor Board Role: The Liquor and Cannabis Board must grant licenses if clubs meet these standards, though enforcement of lewd conduct rules can still revoke them.


Background & Impact:

  • Old System Issues: The alcohol ban led to less social atmospheres, binge drinking in parking lots, and financial struggles for clubs, resulting in few establishments.
  • Legislative Push: The "Strippers' Bill of Rights" was a response to these issues, partly highlighted by enforcement actions at LGBTQ+ bars, and advocates for worker rights.
  • Potential Growth: By allowing alcohol and improving safety, the law aims to make clubs more viable, potentially increasing their number and improving the experience for both patrons and workers.
 
She shouldn't have to declare most of her tips.

Washington strip club laws have historically banned alcohol sales due to a "lewd conduct" rule, making it the only state with this restriction, but recent legislation (Senate Bill 6105), the "Strippers' Bill of Rights," aims to change this by improving dancer protections (security, fees, training) and allowing clubs to apply for liquor licenses if they comply with safety standards, potentially revitalizing the industry.


Key Changes from SB 6105:

  • Alcohol Sales: The primary change allows clubs to serve alcohol if they meet new requirements, ending the long-standing ban that hurt profitability and safety.
  • Dancer Protections: Mandates panic buttons, security guards, training on harassment/trafficking, and limits fees clubs can charge dancers (max $150 or 30% of earnings).
  • Security & Reporting: Requires security personnel and reporting of customer violence/criminal behavior, creating safer environments.
  • Liquor Board Role: The Liquor and Cannabis Board must grant licenses if clubs meet these standards, though enforcement of lewd conduct rules can still revoke them.


Background & Impact:
  • Old System Issues: The alcohol ban led to less social atmospheres, binge drinking in parking lots, and financial struggles for clubs, resulting in few establishments.
  • Legislative Push: The "Strippers' Bill of Rights" was a response to these issues, partly highlighted by enforcement actions at LGBTQ+ bars, and advocates for worker rights.
  • Potential Growth: By allowing alcohol and improving safety, the law aims to make clubs more viable, potentially increasing their number and improving the experience for both patrons and workers.
Wow! 🚩
 
The wife is in the middle of looking for new jobs.(Enter some crude joke here)

Always worked in the state of Oregon. Possible job opening in The Couv. What does this mean about working in Washington but living in Oregon?
PROS….. CONS?
Cons are the commute sucks. And you'd still include that income as taxable to Oregon because all income is taxable to Oregon as an Oregon resident.
 
The wife is in the middle of looking for new jobs.(Enter some crude joke here)

Always worked in the state of Oregon. Possible job opening in The Couv. What does this mean about working in Washington but living in Oregon?
PROS….. CONS?
Oregon resident owes tax on all income, doesn't matter if she earns in WA vs OR.

If you both moved to couv then her income would be nontaxable (state). You'd also save on your out of state earnings.
 
No. As an Oregon resident all income anywhere is taxed by Oregon.
Correct, it's a huge benefit to live in vancouver. Married couple earning 150k each that's about 30k yr of tax savings.

Huge benefit to living in Texas for us and I wouldn't move to a tax state unless a job offer had a massive raise.
 
I live in East Vancouver and my job is in Portland. 2 days a week I work from home. I get refunded the Oregon income tax I pay for those 2 days on my tax return. It's typically about $5,000 each year.
 
Got any family that lives in Washington? Maybe she could use their address as her residence?
 
On the surface. Sales tax will still gobble up plenty of that money back.
Not nearly as much as you would think...
On the example given, there was ~$30k savings due to income tax.

Vancouver's sales tax is 8.8%. So a little math to figure out the break even point: $30k/8.8% => $340k. A couple would need to spend over $340k on taxable stuff to pay the same amount as Oregon income tax would cost.

If a couple earning ~$150k each (~$300k total), spent $100k on stuff with sales tax, that is still only $9k... meaning Vancouver is still far better.
 
I live in East Vancouver and my job is in Portland. 2 days a week I work from home. I get refunded the Oregon income tax I pay for those 2 days on my tax return. It's typically about $5,000 each year.

Your employer doesn't have to withhold taxes for those 2 days since you aren't working in OR, you can ask them not to.

barfo
 
Your employer doesn't have to withhold taxes for those 2 days since you aren't working in OR, you can ask them not to.

barfo

Really? I wasn't aware of that. I also get to work from home on other days if needed that I also keep track of and deduct when I file my taxes, so it might be easier to just compile all the days like I have been doing.
I'm also a salaried employee, does that matter? Seems like that might make it more difficult on their/employers end.
 
Not nearly as much as you would think...
On the example given, there was ~$30k savings due to income tax.

Vancouver's sales tax is 8.8%. So a little math to figure out the break even point: $30k/8.8% => $340k. A couple would need to spend over $340k on taxable stuff to pay the same amount as Oregon income tax would cost.

If a couple earning ~$150k each (~$300k total), spent $100k on stuff with sales tax, that is still only $9k... meaning Vancouver is still far better.
Everyone's situation is different. We don't know how much in additions, subtraction, credits, business losses, etc the individual has. Oregon's rate is also generally 9%, but it is a progressive tax system. Which would be less than 30k.

For instance, if they file jointly and they have enough itemized deductions and subtraction to bring their income down to 250k, their tax is only around 21k. Not 30k.

To get a full picture, folks need to look at property tax too in their jurisdiction. It is never merely a income tax vs sales tax equation. For Vancouver, I would be surprised if Clark County assesses more than say Multnomah County. But, King County may assess more. Just like Seattle has a sales tax rate higher than the highest Oregon income tax rate.
 
Really? I wasn't aware of that. I also get to work from home on other days if needed that I also keep track of and deduct when I file my taxes, so it might be easier to just compile all the days like I have been doing.
I'm also a salaried employee, does that matter? Seems like that might make it more difficult on their/employers end.

Salaried doesn't figure into it - at least for the 2 days per week, that's a very easy calculation (40% WA, 60% OR).
It all depends on how nice you are to your payroll person(s). If they want to, they could even deal with the random days, but that's maybe more overhead than most would be willing to handle. And if you push them too far, you might get told to work in the office more often...

barfo
 
On the surface. Sales tax will still gobble up plenty of that money back.
Sales tax is not as much as you'd think; mortgage, groceries, child care, investments don't have any. Vacation and travel is the same as we'd travel to the same spots.

Biggest sales tax is buying a car but you get a credit for your trade in. Can delay buying to not pay the tax if you want.

Property tax on the house is the big one here but Portland's isn't really any lower.
 

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