Link to Owner Dr. Robert B. Pamplin Jr.

FONT & AUDIO

MORE STORIES


The department will make the correction, and, in most cases, affected taxpayers will receive refunds or have a lower tax bill

The Department of Revenue announced Friday it will adjust the tax returns for Oregon taxpayers who have already filed their 2020 returns and are due relief from income taxes paid on recently exempted unemployment benefits earned in 2020.

According to a news release from the Oregon Department of Revenue, Oregon taxpayers who received unemployment in 2020 and have not yet filed their tax returns can do so now following the instructions the IRS recently provided.

The American Rescue Plan, signed into law March 11, exempts up to $10,200 of unemployment benefits received in 2020 per individual from taxes for households with less than $150,000 in modified adjusted gross income.

The change affects thousands of Oregon taxpayers who had already filed their state income tax returns, paying taxes on 2020 unemployment benefits, before Congress made the change to the tax code.

Last week's announcement means those taxpayers do not need to take action to amend their returns. The department will correct it for them, and, in most cases, affected taxpayers will receive refunds or have a lower tax bill.

The department is still working out the details related to processing the corrections but expects to start adjusting returns this week.

More information will be available in the coming days via the department's American Rescue Plan frequently asked questions.

Most e-file software providers have indicated to Department of Revenue that they will have the necessary software updates in place.

Taxpayers who have not yet filed should check with their tax preparer or software provider. More information about e-filing can be found on the agency's website.

The deadline for filing and paying 2020 income tax returns has been extended by both the IRS and DOR until May 17, 2021.


You count on us to stay informed and we depend on you to fund our efforts. Quality local journalism takes time and money. Please support us to protect the future of community journalism.

Go to top
JSN Time 2 is designed by JoomlaShine.com | powered by JSN Sun Framework