Unaware Oregonians may be surprised to know that the “stimulus checks” – or as many call them “survival checks” – issued by the federal government, although not taxed federally, are taxed at the state level.
The tax rate for those checks is 8.75%. So, for your $1200 check you will end up owing the State $105 when filing your tax return. Similarly, if you were lucky to receive your second check last year, your added tax bill will come to $157.50. This will likely reduce tax refunds for many.
Sunnymax Effiong of Sunny Tax Service told KOIN news that not only were his clients surprised, but he was as well: “I’ve had a few of my clients raise the same concern: how is this fair?”
People who will not be affected are those whose income even with the stimulus check is below a certain threshold – $6,495 for a person filing as single and $12,990 for a couple with no dependents.
By Joanna Rosińska
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