PORTLAND, Ore. (KOIN) — The $1.9 trillion stimulus bill signed by President Biden on Thursday provides a third round of relief checks as well as a tax break for the hundreds of thousands of people who are still unemployed.
People who received unemployment benefits will likely receive some kind of tax refund as a result of the new relief package. But those who have already filed their taxes will likely need to re-file to get that money back.
The Biden administration’s American Rescue Plan extends unemployment benefits that were set to expire this week through Sept. 4 and provides an additional $300 weekly federal benefit. The relief bill came as welcome news to the roughly 133,000 Oregonians either already out of unemployment benefits or are about to run out.
The law makes the first $10,200 of unemployment benefits exempt from federal taxes for those who made less than $150,000 in adjusted gross income in 2020. This should also apply to people who received unemployment benefits through the Work Share program, according to the Oregon Employment Department. But many people already had taxes withheld from their unemployment checks or already filed their 2020 taxes.
David Gerstenfeld, the acting director of the OED, said the tax money they withheld has already been sent to the Internal Revenue Service and Oregon Department of Revenue.
“Once we’ve made that payment, we’ve made that payment on account of that person and we don’t have the ability to take that money back from those taxing entities,” Gerstenfeld explained.
KOIN 6 News learned the IRS is currently reviewing the process and plans to release updated guidance in the near future. New information will be posted here.
Someone who has already filed their Oregon taxes will likely need to file an amended return, according to the Oregon Department of Revenue. Department officials met on Thursday to discuss the complication and also plan to release more information soon. Until then, tax filers should wait to take action.
Taxpayers who received unemployment benefits in 2020 and have not yet received a Form 1099-G should contact the Oregon Employment Department by calling 503.947.1320.
Federal and state income taxes are due April 15.
KOIN 6 News will continue to follow this story.