Once again, tax season has arrived, and taxpayers are starting to prepare their tax returns. The tax filing period in Oregon normally begins in mid- to late-January and lasts until April 15th. The Internal Revenue Service (IRS) declared this year that the tax filing season for 2021 will start on February 12. The Oregon Department of Revenue has not yet made a statement regarding the start date for receiving tax returns for the 2021 tax year.
On the website of the Oregon Department of Revenue, taxpayers in Oregon can electronically file their state taxes. For qualified taxpayers, the government also provides free e-filing services. State tax returns can also be mailed in, although the agency may need more time to process them. Who is Exempt from the Statewide Transit Tax in Oregon?
Both Oregon citizens and non-residents who perform services in Oregon are subject to the Oregon Statewide Transit Tax. The 0.1% tax on earnings is intended to pay for state-funded public transportation initiatives.
The Oregon Statewide Transit Tax has certain exemptions. People who make less than $1,000 in salary annually are free from paying the tax. Self-employed people who do not hire anyone else are also exempt from paying tax.
The Oregon Statewide Transit Tax must be withheld by employers and reported on W-2 forms for employees. The tax must be recorded on the W-2 form in Box 14 with the heading “OSTT.” The amount of the tax withheld should also be disclosed by employers on the Oregon Quarterly Combined Payroll Tax Report.
Federal tax returns cannot deduct the Oregon Statewide Transit Tax. On their Oregon state tax return, however, taxpayers who itemize deductions could be allowed to deduct the tax. To find out if they qualify for the tax deduction, taxpayers should utilize tax preparation software or talk with a tax expert.
In conclusion, although the Oregon Department of Revenue has not yet released an exact date, taxpayers in Oregon should plan to file their 2021 tax returns some time in mid- to late January. A tax on earnings earned in Oregon called the “Oregon Statewide Transit Tax” is levied, with low-wage workers and self-employed people receiving exemptions. Taxpayers may be allowed to write off the tax on their Oregon state tax return, and employers are responsible for withholding and reporting the tax on employees’ W-2 forms.