Filing Oregon Form OR-STI Statewide Transit Individual Tax Return in Lacerte

Do I need to file Oregon Form OR-STI, Oregon Statewide Transit Individual Tax Return?

This form applies to a limited number of taxpayers. Please review the form instructions to determine if this filing is required.

Form OR-STI instructions indicate the following;

You must file Form OR-STI if, while you were an Oregon resident:

• You earned taxable wages on or after July 1, 2018 through December 31, 2018 from an employer located outside Oregon for work performed outside Oregon; and
• Your employer didn’t withhold STI tax from your wages.

STI tax withholding will usually be located in box 14 of the Form W-2 you received from your employer. If STI tax withholding isn’t reported on your Form W-2 for wages that are subject, you must file and pay the STI tax.

You should also file Form OR-STI to claim a refund if, while you were a nonresident of Oregon:

• You earned taxable wages on or after July 1, 2018 through December 31, 2018 for working inside and outside Oregon; and
• Your employer withheld STI tax from all of your wages.

Nonresidents can claim a refund of the STI tax withheld for work performed outside Oregon, because it’s not subject to the STI tax. Work performed inside of Oregon is subject to the STI tax.

For example, if you’re a Washington resident and work for an Oregon employer, and you telework from your Washington residence during the year, only the wages you earned while working in Oregon are subject to the STI tax. If your STI tax withholding is based on 100% of your wages, you can file Form OR-STI to claim a refund of STI tax withheld from wages that are not subject to this tax.

Don’t file if you are an Oregon resident and each of your employers withheld STI tax (usually box 14 of your Form(s) W-2) from your wages; the STI tax has already been paid.

Exceptions
The following income isn’t subject to the STI tax:

• Wages earned prior to July 1, 2018.
• Income received for domestic services in a private home.
• Income received for services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of the minister’s ministry.
• Income received for temporary employment as an emergency forest fire fighter.
• Income received for active service in the Armed Forces of the United States if federal withholding isn’t required.
• Income received for planting or harvesting seasonal agricultural crops if the total wages received are less than $300 annually.
• Income received for work performed as an independent contractor (self-employment income).
• Income received by a nonresident who is exempt from state income tax under OAR 150-316-0173 (air carrier employees and Amtrak Act) or ORS 316.127(8) (hydroelectric dam workers and waterway workers).
• Income received by an enrolled member of a federally recognized American Indian tribe that qualifies for the exemption from state income tax. See “American Indian” under the subtractions section of Publication OR-17.
• Other income that isn’t wages, such as unemployment, retirement, and interest.

If you determine that Form OR-STI must be filed: