The American Rescue Plan Act of 2021 (ARPA), which went into effect Thursday, exempts up to $ 10,200 per person from unemployment benefits from taxes through 2020 for households with adjusted gross income less than $ 150,000. The change will affect thousands of Oregon taxpayers by lowering their 2020 taxable income and lowering their tax burden.
The Oregon Department of Treasury recommends 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 tax return, as well as those who have not yet filed a tax return.
Once the IRS has identified the best way to address this unique mid-tax filing season change, the department will provide additional information to Oregon taxpayers on their own website.
Taxpayers who received Unemployment Benefit in 2020 and have not yet received a Form 1099-G should contact the Oregon Employment Department Contact us website.
Federal and state income taxes are due April 15. Information on filing an extension can be found on the Ministry of Finance website.