The Oregon Department of Revenue will begin processing state tax returns on January 27, the same day the IRS will begin processing federal returns. Taxpayers can submit their returns earlier, but processing won’t start until the tax season officially begins.
Once processing begins, returns will be processed in the order received. However, the Oregon Department of Revenue won’t be issuing personal income tax refunds until after February 15. This refund hold is part of the state’s tax fraud prevention activities and will allow confirmation that the amounts claimed on returns matches what employers report on forms W-2 and 1099. The IRS is also holding federal tax refunds until after February 15, but only for those taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit.
Federal changes from the 2017 Tax Cuts and Jobs Act directly impact Oregon’s personal income tax, including changes to calculating withholding allowances for tax year 2019. This may mean that more taxpayers have a tax to pay or may have more tax to pay than usual. The department encourages taxpayers to use its online withholding calculator to check their state withholding, so they can make any necessary changes to 2020 withholding. Also, because of these federal tax changes, Oregon now has its own W-4 called Form OR-W-4. Taxpayers can request the new form from their employer or download it at www.oregon.gov/dor, fill it out and return it to their employer.
It’s important to note that beginning January 1, 2020, any changes to your state withholding must be made using Form OR-W-4 because Oregon withholding is calculated using allowances, unlike the federal form.
Here are a few other things for taxpayers to keep in mind this tax season:
For more information, visit www.oregon.gov/dor and click on “Free tax preparation services” under “More Topics” on the department’s homepage.
Forms
Oregon Department of Revenue
PO Box 14999
Salem, OR 97309-0990
Employers must file their income tax withholding returns and reports and remit the income tax withheld from their employees’ paychecks by January 31. The department uses these returns and reports to validate the information on employees’ tax returns. Submitting returns and reports by the deadline helps ensure any personal income tax refunds owed to their employees won’t be delayed.
Employer returns and reports due by January 31 include:
For information about an employer’s filing or payment responsibilities, please visit the department’s website at www.oregon.gov/dor, call 503-945-8091, or email payroll.help.dor@oregon.gov.
You can visit www.oregon.gov/dor to get forms, check the status of your refund, or make payments. Call 503-378-4988 or 800-356-4222 (toll-free) or email questions.dor@oregon.gov for additional assistance. For TTY for hearing- or speech-impaired, call 800-886-7204.
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