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Revenue Reminds Taxpayers to Check Withholding
Remember, unemployment compensation is taxable.

The Oregon Department of Revenue is reminding taxpayers that now is the perfect time to review their Oregon tax withholding and payments to avoid a surprise when filing next year.

“We encourage Oregon taxpayers to check their withholding for tax year 2020,” said Personal Tax and Compliance Division Administrator JoAnn Martin. “Not withholding enough during the year could lead to an unexpected tax bill in 2021.”

Oregon’s Form OR-W-4 and Revenue’s online withholding calculator allow taxpayers to determine the correct amount to withhold for Oregon personal income tax. The 2020 Form OR-W-4 and the withholding calculator are available on the department’s website.

Generally, wage earners should periodically review their withholding, especially when they had a recent personal or financial change that may affect their tax situation such as a change in income, filing status, or number of dependents.

This year, thousands of Oregon taxpayers have had to file for unemployment benefits, many of them for the first time. Unemployment compensation is taxable and withholding is not done automatically. If recipients did not elect to have state income tax withheld when applying for benefits, they will need to fill out Form 1040WH from the Oregon Employment Department website and submit it to the OED to authorize withholding.

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


--Staff Reports

Post Date: 2020-10-17 11:30:33Last Update: 2020-10-17 18:32:45



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