One of the few states in the US, Oregon levies state income taxes on its citizens and non-citizens who work there. Your employer has a legal obligation to deduct taxes from your pay and send them to the Oregon Department of Revenue on your behalf as an employee. Nevertheless, depending on their circumstances, some employees might be excused from Oregon’s withholding meaning.
– You didn’t owe any Oregon income taxes the year before, and you don’t anticipate owing any this year either. If the standard deduction for your filing status is less than your total income and you are a full-time student, you qualify for the exception.
– You do not live in Oregon and do not spend more than 30 days a year working there.
You must submit Form W-4, Employee’s Withholding Allowance Certificate, in order to request exemption from Oregon withholding. You must type “EXEMPT” on line 7 of the form to indicate that you are exempt from state withholding. Your employer must receive the fully filled form before it can determine how much tax withholding to make from your paycheck.
Yes, Oregon offers an e-file authorization form that enables taxpayers to give consent for a third party to electronically file their tax returns, such as a tax preparer or software supplier. Form OR-8453, Oregon Individual Income Tax Declaration for Electronic Filing, is the name of the document that authorizes electronic filing.
You must first prepare your Oregon tax return using tax preparation software or by hand filling out the papers before using Form OR-8453. When your return is finished, you must print, sign, and deliver Form OR-8453 to the Oregon Department of Revenue. If you submitted a federal tax return, a copy of it must be sent as well.
If you itemize deductions on your federal income tax return, you can deduct Oregon property taxes. The state and local taxes (SALT) deduction, which also includes state income taxes and sales taxes, includes property taxes.
For the tax years 2018 through 2025, there is a $10,000 cap on the SALT deduction. This means that you can only deduct a maximum of $10,000 on your federal income tax return if your total state and local taxes, including property taxes, exceed $10,000.
In conclusion, you can request exemption from Oregon withholding if you meet the requirements by filling out Form W-4 and giving it to your employer. Additionally, Oregon provides a Form OR-8453 that permits taxpayers to designate a third party to electronically file their Oregon tax returns. The state and local taxes (SALT) deduction in Oregon includes deductions for property taxes, however there is a $10,000 limit.