With April 15 approaching, the Department of Revenue reminds taxpayers that the deadline for filing individual income tax returns for the 2020 tax year has been postponed to May 17, 2021. The IRS and Oregon both announced the postponements last month.
Individual taxpayers, including those who pay self-employment tax, can also postpone state income tax payments due on their 2020 tax year return until May 17, 2021. Individual taxpayers will automatically avoid interest and penalties as long as they pay all taxes due by the postponed deadline. Penalties and interest will begin to accrue on any unpaid balances as of May 18, 2021.
Oregon has not postponed the due date for first-quarter estimated income tax payments for 2021. Estimated tax payments are still due April 15, 2021. Taxpayers may choose to pay directly from their bank account or by credit card using Revenue Online. More information about the postponement of the individual income tax filing and payment due dates is available in a list of frequently asked questions on the department’s website.
Update on 2020 unemployment benefits tax relief
Revenue has started adjusting 2020 income tax returns for Oregon taxpayers who paid taxes on exempted unemployment benefits, and thousands of refunds have already been issued. The manual process began March 30 and is on track to be completed over the next several weeks. 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. The department is adjusting the returns for those taxpayers. Affected taxpayers will receive refunds or have a lower tax bill.
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. Most e-file software providers have indicated they have the necessary software updates in place. Taxpayers should check with their tax preparer or software provider if they have questions about the updates.
E-filing and free filing
The department reminds taxpayers that e-filing your return and using direct deposit is the fastest way to get your Oregon tax refund. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund sooner than those who file paper returns and request paper refund checks. More information about e-filing can be found on the agency’s website.
All Oregon taxpayers preparing their own returns can file electronically at no cost using Oregon’s free fillable forms. There are many free or low-cost preparation options available for both federal and Oregon tax returns. Some software companies offer free software use and e-filing for eligible taxpayers. More free filing information is available on the department’s website.
To get tax forms, check the status of your refund, or make tax payments, visit oregon.gov/dor or email questions.dor@oregon.gov. You also can call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon. For TTY (hearing- or speech-impaired), we accept all relay calls.
