Financial Affairs

What to expect this tax season with stimulus funds, PPP loans, etc.

EUGENE, Oregon – Tax season will be a little different this year due to federal and state COVID-19 assistance programs.

While stimulus checks aren’t technically taxed in Oregon, some residents may still end up paying more this year due to the way state taxes are calculated.

“Oregon gives individuals a subtraction on their tax return for federal taxes paid. The stimulus check is an advance on federal tax credits. Some individuals, a small margin of individuals, may see an effect on their Oregon federal tax evasion number, ”said Neil Langlois, agent for Jones and Roth CPA.

For more information on the impact of your stimulus funds on your tax return, CLICK HERE.

Langlois also gave information to business owners who also took out Paycheck Protection Program loans during the pandemic.

“There were all kinds of changes through the evolution of P3s to the rules, like what was considered taxable and non-taxable,” Langlois said. “Today, most P3 applicants are unlikely to pay federal tax.”

However, Langois said that for the state, Oregon could pass a bill imposing a surtax on P3 loans.

KEZI 9 News also spoke to Chief Financial Officer Ron Kanaga, who works for a nonprofit called DevNW, which helps people improve their financial well-being.

Kanaga said it is essential that people file their taxes early and that it is the best way to avoid tax evasion. He also gave other tips to people trying to get relief this tax season.

“Go directly to the IRS website if you plan to file online. Just Google: IRS free file. They will list hundreds of suppliers. Usually if you make less than $ 72,000 you shouldn’t have to pay anything, ”Kanaga said. “Also, find out a little about the tax deductions to which you are entitled. Some people have found that last year they were making a lot less income. On the bright side, you may be eligible for tax credits that you wouldn’t otherwise be entitled to.

The IRS will begin processing tax returns on February 12 of this year.