Department Of Revenue Plans Events In Prineville, Pendleton, The Dalles To Help Taxpayers E-file Their Taxes For Free -01/27/25

Salem, OR--Oregonians looking to file their taxes for free could find help as close as their local library.

Volunteers from the Oregon Department of Revenue will be traveling to libraries in 18 different communities across the state in February, March, and April to assist taxpayers in using the free combination of IRS Direct File and Direct File Oregon to complete their returns.

Upcoming stops include:

February 4

Crook County Library

175 NW Meadow Lakes Drive, Prineville, OR 97754

8 a.m. to 8 p.m.

February 5

Pendleton Public Library

502 SW Dorion Ave, Pendleton, OR 97801

8 a.m. to 7 p.m.

February 6

The Dalles Wasco County Library

722 Court Street, The Dalles, OR 97058

10 a.m. to 7 p.m.

Taxpayers can find more information on the department's Free Direct File assistance at local libraries webpage.

The IRS estimates that 640,000 Oregon taxpayers will be able to e-file both their federal and state returns for free in 2025 using the combination of IRS Direct File and Direct File Oregon.

The department believes that offering free assistance will help maximize the number of Oregonians who choose to use the new free option and make it possible for many who don't have a filing requirement to file and claim significant federal and state tax credits for low-income families.

For example, the IRS estimates that one in five Oregon taxpayers eligible to claim the federal Earned Income Tax Credit are not doing so. One Oregon organization estimates that the unclaimed credits have totaled nearly $100 million in recent years.

Taxpayers should use the IRS eligibility checker to see if they'll be able to use IRS Direct File and Direct File Oregon. Eligible taxpayers should set up an IRS online account and an account with Oregon's Revenue Online before they come to an event. Taxpayers attending an event should bring the following information with them.

Identification documents

• Social security card or ITIN for everyone on your tax return
• Government picture ID for taxpayer and spouse if filing jointly (such as driver's license or passport)

Common income and tax documents

• Forms W2 (wages from a job)

• Forms 1099 (other kinds of income)
• Form SSA-1099 (Social Security Benefits)

Optional documents

• Canceled check or bank routing and account numbers for direct deposit
• Last year's tax return

Taxpayers can signup for the new "Oregon Tax Tips" direct email newsletter to keep up with information about tax return filing and how to claim helpful tax credits. 

Tax Season Opens Today: Common Errors Taxpayers Can Avoid -01/27/25

Salem, OR-- As the IRS and the state begin accepting tax year 2024 returns today, the Oregon Department of Revenue is offering taxpayers a list of suggestions to aid in efficiently processing their return and common errors to avoid that could slow things down and delay their refund.

File electronically, request direct deposit

On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund two weeks sooner than those who file paper returns and request paper refund checks.

E-filed returns will be processed in the order they are received. However, as in years past, the department won't be issuing personal income tax refunds until after February 15. A refund hold is part of the department's tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.

Sending a duplicate paper return through the mail after e-filing will a delay a refund. Taxpayers should file just once unless they need to make a change to their return.

Gather all tax records before filing

Having all necessary records is essential to filing a complete and accurate tax return and avoiding errors. Taxpayers should wait to file until they have all their tax records, including Form W-2s from their employers and Form 1099s reporting other income.

Getting in a hurry can cause taxpayers to file before they have all the information necessary to report all of their income. If income reported on a return doesn't match the income reported by employers, the return, and any corresponding refund, will be delayed.

If taxpayers receive more or corrected tax records after filing a return, they should file an amended return to report any changes.

Revenue Online

Before beginning the filing process, taxpayers should make sure their information is current in Revenue Online, the state's internet tax portal. They should check their username, password, and address; and verify any estimated tax payments they've made. Those who don't have a Revenue Online account can sign up on the agency's website.

Revenue Online is the best way to communicate with the department. Refunds for taxpayers that are new to filing returns may be delayed so the department can verify their identity. Taxpayers who receive a letter requesting identity verification are urged to respond promptly through Revenue Online to speed the processing of their return.

Refunds can also be delayed when errors are identified on returns. Taxpayers who receive a letter requesting additional information are urged to respond promptly through Revenue Online to speed the processing of their return.

Download Form 1099-G

The department reminds taxpayers that it no longer mails taxpayers Form 1099-G, which reports the amount of refunds, credits, or other offsets of personal income, statewide transit individual tax, TriMet transit self-employment tax, or Lane transit self-employment tax during the previous year.

Only those who itemized deductions on their tax year 2023 federal income tax return will need a Form 1099-G to file their tax year 2024 return. Those taxpayers can view and download their Form 1099-G through Revenue Online. 

Taxpayers who received unemployment insurance or Paid Leave Oregon benefits in 2024, will receive a separate 1099-G by January 31 from the Oregon Employment Department.

Free filing options

Free electronic filing through the combination of IRS Direct File and Direct File Oregon is available this year. Taxpayers are encouraged to use the IRS Eligibility Checker to see if they qualify to file directly with the IRS and the state. An instructional video on how to use the direct file option is now available on the Department of Revenue You Tube page.

In addition to IRS Direct File and Direct File Oregon, other free filing options will also open today. Free guided tax preparation is available from several companies for taxpayers that meet income requirements. Free fillable forms are available for all income levels. Using links from the department's website ensures that both taxpayers' federal and state return will be filed for free.

Free and low-cost tax help

Free tax preparation services are available for low- to moderate-income taxpayers through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information about free tax preparation services.

Taxpayers can sign up for the new "Oregon Tax Tips" direct email newsletter to keep up with information about tax return filing and how to claim helpful tax credits.  

Department Of Revenue Volunteers Will Help Taxpayers Use Direct File Oregon To E-file Their Taxes For Free At Libraries Across The State -01/15/25

Salem, OR—Oregonians looking for assistance in electronically filing their taxes for free, could find help as close as their local library this tax season.

Volunteers from the Oregon Department of Revenue will be traveling to libraries in 17 different communities across the state in February, March, and April to assist taxpayers in using the free combination of IRS Direct File and Direct File Oregon to complete their returns.

The one-day tax help clinics are planned at libraries in:

Dates, times, and addresses for each clinic can be found on the Free Direct File assistance at local libraries webpage.

Last year, more than 140,000 taxpayers in 12 other states filed their federal tax returns using a limited IRS Direct File pilot program while nearly 7,000 Oregon taxpayers filed their state returns using the free, state-only Direct File Oregon option.

The U.S. Department of the Treasury announced in May that it would make IRS Direct File a permanent option for taxpayers and invited all 50 states to participate. Oregon was the first of 13 new states to accept the invitation from the IRS in June creating a seamless free e-filing system for both federal and state taxes.

With the two direct file systems connected, the IRS estimates that 640,000 Oregon taxpayers will be able to e-file both their federal and state returns for free in 2025.

The department believes that offering free assistance will help maximize the number of Oregonians who choose to use the new free option and make it possible for many who don’t have a filing requirement to file and claim significant federal and state tax credits for low-income families.

For example, the IRS estimates that one in five Oregon taxpayers eligible to claim the federal Earned Income Tax Credit are not doing so. One Oregon organization estimates that the unclaimed credits have totaled nearly $100 million in recent years.

Taxpayers should use the IRS eligibility checker to see if they’ll be able to use IRS Direct File and Direct File Oregon. Eligible taxpayers should set up an IRS online account and an account with Oregon’s Revenue Online before they come to an event. Taxpayers attending an event should bring the following information with them.

Identification documents

• Social security card or ITIN for everyone on your tax return
• Government picture ID for taxpayer and spouse if filing jointly (such as driver’s license or passport)

Common income and tax documents

• Forms W2 (wages from a job)

• Forms 1099 (other kinds of income)
• Form SSA-1099 (Social Security Benefits)

Optional documents to download

• Canceled check or bank routing and account numbers for direct deposit
• Last year’s tax return

Taxpayers can signup for the new “Oregon Tax Tips” direct email newsletter to keep up with information about tax return filing and how to claim helpful tax credits. 

IRS Direct File, Direct File Oregon Will Be Available When Income Tax Return Processing Begins January 27 -01/10/25

Salem, OR— Free electronic filing through the combination of IRS Direct File and Direct File Oregon will open January 27 when both the IRS and the Oregon Department of Revenue begin processing e-filed 2024 federal and state income tax returns. Paper-filed return processing will begin in mid-February.

The IRS estimates that 640,000 Oregon resident taxpayers preparing their own tax returns in 2025 will have the option to electronically file both their federal and state income tax returns for free by filing directly with the IRS and the state.

Taxpayers are encouraged to use the IRS Eligibility Checker to see if they qualify to file directly with the IRS and the state.

E-filed returns will be processed in the order they are received. However, as in years past, the department won’t be issuing personal income tax refunds until after February 15. A refund hold is part of the department’s tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.

E-filing is the fastest way for a taxpayer to get their refund. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund two weeks sooner than those who file paper returns and request paper refund checks.

The department reminds taxpayers that taking a few easy steps in the next few weeks can make preparing their 2024 tax return easier in 2025.

Free filing options open January 27
In addition to IRS Direct File and Direct File Oregon, other free filing options will also open January 27. Free guided tax preparation is available from several companies for taxpayers that meet income requirements. Free fillable forms are available for all income levels. Using links from the department’s website ensures that both taxpayers’ federal and state return will be filed for free.

Free and low-cost tax help

Free tax preparation services are available for low- to moderate-income taxpayers through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information about free tax preparation services.

Voluntary self-identification of race and ethnicity information
New for 2025, Oregon taxpayers and Oregonians can voluntarily provide information about their race and ethnicity on Form OR-VSI when they file their 2024 taxes. Providing this information may be done separately from a tax return through Revenue Online. The information will be confidential. It can only be used for research purposes to analyze potential inequities in tax policy. The new option is a result of Senate Bill 1 in 2023.

Use Revenue Online to verify payments
Taxpayers can verify their estimated payments through their Revenue Online account.

Through Revenue Online, individuals can also view letters sent to them by the department, initiate appeals, make payments, and submit questions. Visit Revenue Online on the Revenue website to learn more.

Those who don’t have a Revenue Online account can sign up on the agency’s website.

To check the status of their refund after February 15, or make payments, taxpayers can visit Revenue’s website. 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.
 

Changes Make It Easier To Claim Tax Benefits When Saving For Your First Home -01/07/25

Salem, OR— Aspiring homeowners looking to take their first steps into the real estate market now have greater access to a key tool that can help make their dreams of home ownership more affordable.

Legislative changes to the state’s First-Time Home Buyer Savings Account program last year make it easier than ever to reap tax benefits while saving for a home. First-time home buyers can now open accounts at any financial institution, and friends or family will be able to open an account to help someone else.

Individual First-Time Home Buyer Savings Account holders will be able to subtract up to $6,125 of their 2025 deposits and earnings from their Oregon income when they file their tax year 2025 return in 2026. Joint filers will be able to subtract up to $12,245. To qualify, the account holder or beneficiary can't have owned or purchased a residence in the three years prior to the date of their planned purchase.

Account holders qualify for a cumulative tax subtraction of as much as $50,000 over a decade, and deposited funds can be used for costs such as down payments, insurance, commissions and other closing costs.

Account holders can designate an account and a beneficiary, if applicable, using Form  OR-HOME, which can be found in the agency Forms and Publications Library.

To get tax forms, check the status of your refund, or make tax payments, visit www.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.