Oregon wage earners could face bigger income tax bills

Published 12:00 am Saturday, August 18, 2018

The Oregon Department of Revenue is urging employees to make sure they’re withholding enough from paychecks to cover their 2018 state income tax liability.

This is important for anyone who filled out the 2018 federal Form W-4, the department stated in a press release. Because of the federal 2017 Tax Cuts and Jobs Act, there is now a larger difference between withholding calculations for federal and Oregon income tax. What’s more, Oregon depends on the federal form to determine state withholding, so taxpayers might not be holding back enough taxes to cover their state income tax liability, the department said.

The department has updated its withholding calculation worksheet to account for federal changes. The worksheet, OR-WW, “Oregon Withholding Worksheet,” is available at: bit.ly/bbtaxes

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