Did You File A Tax Return This Year
Most people who earn income in the United States have to file federal tax forms by April 15 of each year. If you earned income in the U.S. last year and didn’t file a tax form, you can still file one, even though the deadline has passed. To file a tax return, you need either a valid Social Security number or tax ID number that can be used only for filing taxes. Each family member listed on the return must also have a Social Security number or an ITIN. A person who doesn’t have a valid Social Security number can fill out form W-7 to apply for an ITIN. You should never put a false Social Security number on your tax return. Here are three reasons to file a tax return:
1. You may be legally required to file a tax return.
You have to file a federal tax return if you earn more than a certain amount of money each year. The amounts depend upon your age and family size, and they usually change each year.
Many workers who earn wages in Oregon have to file an Oregon state tax return as well, even if they are not full-time Oregon residents. Workers who earn money in other states may also have to file tax returns for those states.
If you owe taxes and don’t file a return and pay the taxes you owe, the government can charge you penalties and interest.
2. You may be entitled to a refund.
The EIC is a fully refundable tax credit. This means that if you owe taxes, the EIC will reduce the amount of taxes that you owe. If you don=t owe taxes, the EIC will be sent to you as a refund.
Update / Your Taxes: Filing Deadline Extended
- The Chronicle
With April 15 approaching, the Oregon Department of Revenue has issued a reminder to taxpayers that the deadline for filing individual income tax returns for the 2020 tax year has been postponed to May 17, 2021. The IRS and Oregon both announced the postponements last month.
Income tax deadline has been moved from April 15 to May 17.
Individual taxpayers, including those who pay self-employment tax, can also postpone state income tax payments due on their 2020 tax year return until May 17, 2021, according to a release from the Oregon Revenue Department. Individual taxpayers will automatically avoid interest and penalties as long as they pay all taxes due by the postponed deadline. Penalties and interest will begin to accrue on any unpaid balances as of May 18, 2021.
Oregon has not postponed the due date for first-quarter estimated income tax payments for 2021. Estimated tax payments are still due April 15, 2021. Taxpayers may choose to pay directly from their bank account or by credit card using Revenue Online. More information about the postponement of the individual income tax filing and payment due dates is available in a list of frequently asked questions the departments website.
Update on 2020 unemployment benefits tax relief
E-filing and free filing
Previous Chronicle coverage posted March 18:
Both the IRS and the Oregon Department of Revenue will be providing formal guidance in the coming days.
Irs Provides Tax Relief For Victims Of Oregon Wildfires Oct 15 Deadline Other Dates Extended To Jan 15
IR-2020-215, September 17, 2020
WASHINGTON Victims of the Oregon wildfires and straight-line winds that began on September 7 now have until January 15, 2021 to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
The IRS is offering this relief to any area designated by the Federal Emergency Management Agency as qualifying for individual assistance. Currently this includes Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties in Oregon, but taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the Tax Relief in Disaster Situations page on IRS.gov.
The tax relief postpones various tax filing and payment deadlines that occurred starting on September 7, 2020. As a result, affected individuals and businesses will have until January 15, 2021, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2019 return due to run out on October 15, 2020, will now have until January 15, 2021, to file. The IRS noted, however, that because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief.
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Oregon Irs Extend Tax Filing Deadline To May 17 Due To Covid
The Internal Revenue Service is pushing back the tax filing deadline by a month. Income taxes and payments will now be due May 17 instead of April 15, the agency and Treasury Department announced Wednesday.
Oregon announced it would join the IRS in extending the deadline for individual taxpayers to May 17 with no penalties or interest. No forms are required to qualify for the extension.
The IRS said it will provide “formal guidance in the coming days.” Taxpayers who file an extension would still have an Oct. 15 deadline.
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a statement. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds.”
Retirement savings: Profits are rising in IRAs and 401s. The bad news: So are future taxes
Rettig said filing electronically with direct deposit is the quickest way to get refunds. Taxpayers who didn’t receive the first or second stimulus payments may be eligible to claim the Recovery Rebate Credit.
Do You Need To File An Oregon Estate Tax Return
If the gross estate of an Oregon resident has a value of more than $1 million, the personal representative or executor of the estate must file a state estate tax return. Your gross estate will include just about all of the property you own at your death:
- Real estate
- Bank and investment accountsretirement and non-retirement
- Vehicles and other items of personal property
- Proceeds from any life insurance policies on your life, if you owned the policies
- Your business interests
- Any property you hold in a revocable living trust
If you own assets with someone else, generally only your share will be included in your estate. In other words, if you and your spouse own your house, half of its value would be included in your estate.
Notably, your gross estate also includes non-probate assets. For example, the property you hold in a revocable living trust avoids probate, but it does not avoid estate taxes, and is counted in your gross estate.
Portability. The federal estate tax regime allows a surviving spouse to use the deceased spouse’s unused portion of the exemptiona feature called “portability.” However, Oregon’s estate tax does not offer portability between spouses each spouse has an exemption amount of $1 million.
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Oregon Dept Of Revenue Joins Irs In Extending Tax Filing Deadline To May 17
SALEM, Ore. — The Oregon Department of Revenue said Wednesday it is joining the IRS and automatically extending the income tax filing due date for individuals for the 2020 tax year from April 15 to May 17.
Both the IRS and the Oregon Department of Revenue will be providing formal guidance in the coming days.
Individual taxpayers can also postpone state income tax payments for the 2020 tax year due on April 15 to May 17, without penalties and interest, regardless of the amount owed.
This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties and interest will begin to accrue on any remaining unpaid balances as of May 18. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Individual taxpayers do not need to file any forms or call the Department of Revenue to qualify for this automatic tax filing and payment relief.
Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until October 15 by filing federal Form 4868 through their tax professional or tax software or by using the Free File link on IRS.gov. Oregon recognizes a taxpayers federal extension. An extension to file is not an extension to pay. Additional extension information is available on the Revenue website.
The Oregon Income Tax
Oregon collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Like the Federal Income Tax, Oregon’s income tax allows couples filing jointly to pay a lower overall rate on their combined income with wider tax brackets for joint filers.
Oregon’s maximum marginal income tax rate is the 1st highest in the United States, ranking directly below Oregon’s %. You can learn more about how the Oregon income tax compares to other states’ income taxes by visiting our map of income taxes by state.
Oregon’s high income taxes are partially due to the fact that Oregon has no state sales tax. Tax brackets for earnings under under $125,000 are indexed for inflation and adjusted yearly, while tax brackets over $125,000 are only changed explicitly by statute. To help offset high state income taxes, Oregon taxpayers can deduct up to $6,100 of Federal income tax from their Oregon taxable income.
Residents who claim the Earned Income Tax Credit on their federal tax returns can also qualify for the Oregon EITC. The Oregon EITC is 6% of your federal credit, with a minimum credit of $24. Low-income Oregon taxpayers may qualify for free legal or tax help though Oregon DOR recognized charities. To see if you qualify, you can call Legal Aid Services of Oregon at 1-888-610-8764.
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Filing And Payment Deadline
For 2019 state taxes, the state has extended the filing and payment deadline. Oregon residents now have until July 15, 2020, to file their state returns and pay any state tax they owe. As with the federal deadline extension, Oregon wont charge interest or apply any penalties on unpaid balances between April 15 and July 15, 2020.
You dont need to do anything to get this extension. Its automatic for all Oregon taxpayers.
Although this year is a bit different, your Oregon state income tax return and any tax you owe generally are due on the same day as your federal tax return, typically April 15. If Tax Day falls on a weekend or holiday, youll have until the following business day to meet the deadline.
If you request an extension, youll have until Oct. 15 to file your Oregon state tax return.
If you live or work in Oregon for the full year or only part of the year, you may be required to file an Oregon income tax return if your gross income exceeds certain thresholds for your filing status. And if youre in the military or are a Native American, you face different filing requirements.
Oregon Tax Filing And Payment Deadlines Extended To July 15
The Oregon Department of Revenue announced late Wednesday, March 25, 2020, that the state of Oregon will officially extend the deadline for certain tax payments until July 15, 2020. This automatic Oregon tax filing and payment deadlines extension incorporates some but not all of the elements of the federal income tax filing and payment deadlines extension announced last week in response to the COVID-19 pandemic.
The following Oregon state income tax return filing deadlines and payment deadlines are included in this extension:
- The personal income tax returns filing and payment due date is extended from April 15, 2020, to July 15, 2020, including:
- Form OR-40, OR-40-N, and OR-40-P
- Form OR-41
- Form OR-OC
- Form OR-STI
- Form OR-LTD and OR-TM
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How Can I Track An Oregon Tax Refund
If youve filed a return and want to know when youre going to get your refund, you can use the departments Wheres My Refund? tool to get an update.
To track your refund, youll need to input your Social Security number or individual taxpayer identification number, your filing status and the exact amount of your expected refund as shown on your return.
Send Us Your Questions
These are challenging times for our world, nation, and business community.
We at Delap want to know: What questions do you have? Ask us your questions related to COVID-19 and your business, taxes, or other topics, and well do our best to answer them on our blog in the near future.
Delap partner Harriet A. Strothers contributed to this blog post.
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How Can I File An Oregon State Tax Return
The state has limited options to allow you to e-file your tax return through its Department of Revenue site its State Fillable Forms option is typically only available for full-year residents.
However, you can e-file Oregon state tax returns through software providers approved by the Department of Revenue, which may charge a filing fee. Included on the list of approved providers is , which is always free.
If you prefer paper, you can download your tax forms and file a paper return. Heres where you can mail your Oregon state tax return.
If you expect a refund or dont owe anything:
P.O. Box 14700
If you owe a tax payment:
P.O. Box 14555Salem, OR 97309-0940
Resources For Estate Planning Help
- If you have questions about estate planning or other financial planning issues, you might want to consider finding a financial advisor who can help you navigate these complex issues. SmartAssets SmartAdvisor platform can pair you with an advisor in your area who fits your specific needs. Heres how it works: First youll answer a short series of questions about your financial situation and goals and then the tool will match you with up to three advisors. The advisors will later contact you to see if you want to work with them. All of the advisors on SmartAssets platform are registered financial advisors. They have also all been fully vetted and are free of disclosures.
- Part of planning your estate is planning for how youll live in your golden years. To make sure you understand what your finances will look like when you stop working, use this SmartAsset retirement calculator.
- You never know when tragedy might strike and youll need someone else to make decisions for you and your estate. You should consider drafting a living will to make sure everything will be taken care of the way you want it to be.
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Personal And Corporate Income Tax
The Oregon Department of Revenue has received several questions asking if Oregon is going to provide similar relief to the IRS. Now that the Department knows what the IRS is providing, it is evaluating options and authority under the statutes to provide relief for Oregon and its taxpayers. A decision is expected to be made soon.
How Income Taxes Are Calculated
When Do We Update? – We regularly check for any updates to the latest tax rates and regulations.
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Jennifer Mansfield, CPATax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAssets tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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