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The American Rescue Plan Act of 2021 (ARPA), signed into law Thursday, exempts up to $10,200 of unemployment benefits received in 2020 per individual from taxes for households with less than $150,000 in adjusted gross income. The change will affect thousands of Oregon taxpayers by reducing their 2020 taxable income and lowering their tax bill.
The Oregon Department of Revenue recommends that affected taxpayers wait for further information from the IRS and the department before taking action. This includes those who have already filed their 2020 federal and state taxes and may need to file an amended return, as well as those who have yet to file.
Once the IRS determines the best way to address this unique change in law made in the middle of tax filing season, the department will offer more information to Oregon taxpayers via its website.
Taxpayers who received unemployment benefits in 2020 and have not yet received a Form 1099-G should contact the Oregon Employment Department by calling 503-947-1320.
Federal and state income taxes are due April 15. Information about filing for an extension can be found on the Department of Revenue website.
ARPA is a $1.9 trillion COVID-19 relief bill. In addition to exempting some unemployment benefits from taxable income, the act includes more direct payments to households, an expansion of jobless benefits, funding for state and local governments and an expansion of vaccinations and virus-testing programs.
To get tax forms, check the status of your refund, or make payments, visit oregon.gov/dor or email questions.dor@oregon.gov. You can also 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.
