The Foreign Service Journal, January-February 2021

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2021 77 OREGON Individuals domiciled in Oregon are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Oregon’s tax rate rises from 5 percent on taxable income over $3,550 for single fil- ers and $7,100 for married filing jointly, in three steps to 9.9 percent on taxable income over $125,000 for single filers and $250,000 for joint filers. Oregon has no sales tax. Write: Oregon Department of Revenue, 955 Center St. NE, Salem OR 97301-2555. Phone: (800) 356-4222 or (503) 378-4988 Website: www.oregon.gov/dor Email: questions.dor@oregon.gov PENNSYLVANIA Pennsylvania’s tax rate is a flat 3.07 percent. Although Penn- sylvania tax authorities have ruled that Pennsylvania residents in the U.S. Foreign Service are not on active duty for state tax purposes and thus their income is taxable compensation, AFSA has learned that some FSOs have successfully argued that they qualify as non-residents in Pennsylvania. AFSA rec- ommends that readers who believe they qualify to file as non- residents in Pennsylvania consult a qualified tax adviser to assist with filing their returns. For non–Foreign Service state residents, there is no tax liability for out-of-state income if the individual has no permanent residence in the state, has a permanent residence elsewhere and spends no more than 30 days in the state during the tax year. However, Pennsylvania does not consider government quarters overseas to be a “per- manent residence elsewhere.” Filing a return is not required, but it is recommended to preserve domicile status. File Form PA-40 for all income derived from Pennsylvania sources. Write: Commonwealth of Pennsylvania, Department of Revenue, Taxpayer Services Department, Harrisburg PA 17128-1061. Phone: (717) 787-8201 Website: www.revenue.pa.gov Email: Link through the website’s Contact Us tab. PUERTO RICO Individuals who are domiciled in Puerto Rico are consid- ered residents and are subject to tax on their entire income regardless of their physical presence in the Commonwealth. Normally, they may claim a credit with certain limitations for income taxes paid to the United States on any income from sources outside Puerto Rico. Taxes range from 7 percent of taxable income up to $25,000 to 33 percent of the taxable income over $61,500 for all taxpayers. Write: Departamento de Hacienda, P.O. Box 9024140, San Juan PR 00902-4140.