Pandemic modifications can have an effect on enterprise tax returns

0
112
 Pandemic changes can affect business tax returns

The Oregon Department of Treasury began processing state income tax returns on February 12.

Returns are processed in the order in which they are received. The first refunds will be sent out on February 16th. According to the Oregon Department of Treasury, the fastest way to get a refund is to submit the returns electronically and provide information for a direct deposit.

In a press release, the department warned that federal economic reviews, unemployment benefits and changes to federal tax law related to COVID-19 could affect the way taxpayers file their tax returns compared to previous years.

For example, in Oregon, when calculating their federal tax subtraction based on the amount of federal taxes they paid in the previous year, applicants are directed to reduce the amount of federal tax they report by the amount they contribute in 2020 Received stimulus checks.

Oregon unemployment benefits are also taxable, including benefits provided under the Pandemic Unemployment Assistance program. Unlike W-2 wages, the state does not automatically withhold taxes from these checks in advance.

“For those still receiving unemployment benefits in 2021, the department urges recipients to submit Form 1040WH to the Oregon Employment Department for withholding tax approval,” a press release said.

While many Oregonians worked from home for at least part of 2020, workers who receive their wages solely from an employer and not from a business they own are not eligible for business use due to the 2017 Federal Tax Cuts and Jobs Act from home deduction. The law also suspended the deduction for unreimbursed business expenses of employees until 2025.

The Oregon Treasury has tax exemptions for taxpayers who cannot pay their taxes in full because they have been affected by COVID-19, forest fires, or windstorms. For information on these relief options, see oregon.gov/dor/Pages/COVID19.aspx.

For more information, tax forms, the status of a refund or payment, please visit www.oregon.gov/dor or email question.dor@oregon.gov. Taxpayers speaking English or Spanish can also call toll-free Oregon at 800-356-4222 or 503-378-4988 from outside of Oregon.