PORTLAND, Ore. (KOIN) — The Internal Revenue Service and the Oregon Department of Revenue will automatically adjust tax returns for people who received unemployment benefits and who have already filed their 2020 taxes.
The American Rescue Plan made the first $10,200 of unemployment benefits someone received tax-free, but not until after some people had already filed their taxes. Many were left wondering what to do.
KOIN 6 News learned Wednesday both the IRS and the Oregon Department of Revenue will take care of the issue and people do not need to file amended returns. However, both departments are still figuring out how the corrections will be processed and how refunds will be issued. The refunds are expected to start being delivered in May and continue through the summer.
The Oregon Employment Department has been able to pay most people benefits under the American Rescue Plan on time but some who had to file new claims are still waiting. Those claims are taking an average of 21 days to process.
“We do just still have a staggering number of people that are relying on benefits and we are focused on working through them as quickly as possible,” explained David Gerstenfeld, the acting director of OED.
KOIN 6 continues to hear from people who say it’s still too difficult to get through the unemployment department by phone or through the online Contact Us form. The OED said it’s hiring more employees and focusing on additional training in order to answer 80% of calls within 15 minutes by July 1 and to respond to 90% of Contact Us inquiries within seven days.