IRS, STATE: NO TAX OWED ON ONE TIME ASSISTANCE PAYMENTS

February 13, 2023 3:00 a.m.

Oregonians who received One-Time Assistance Payments of $600 last June do not owe taxes on those payment, according to an announcement by Oregon Department of Revenue on Friday.

Director of Revenue Betsy Imholt said, “Based on the language in the legislation creating the payments, we have always believed that they were not taxable to Oregon. The IRS clarified today that Oregonians who received the payments will not owe federal taxes on them, as well”.

The ODR release said in its statement, the IRS noted taxpayers in many states would not need to report this type of assistance payment on their 2022 tax returns. Oregon was among 17 states where the IRS said it would not challenge such payments as excludable for federal income tax purposes in 2022. The IRS statement is linked: https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers

The IRS statement clarified that Oregonians who received OTAP payments last year can go ahead and file their 2022 federal and state income tax returns as soon as they are ready. This year’s filing deadline is April 18th.