Tax season opens today: Common errors taxpayers can avoid

File electronically, request direct deposit

On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund two weeks sooner than those who file paper returns and request paper refund checks.

E-filed returns will be processed in the order they are received. However, as in years past, the department won't be issuing personal income tax refunds until after February 15. A refund hold is part of the department's tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.

Sending a duplicate paper return through the mail after e-filing will a delay a refund. Taxpayers should file just once unless they need to make a change to their return.

Gather all tax records before filing

Having all necessary records is essential to filing a complete and accurate tax return and avoiding errors. Taxpayers should wait to file until they have all their tax records, including Form W-2s from their employers and Form 1099s reporting other income.

Getting in a hurry can cause taxpayers to file before they have all the information necessary to report all of their income. If income reported on a return doesn't match the income reported by employers, the return, and any corresponding refund, will be delayed.

If taxpayers receive more or corrected tax records after filing a return, they should file an amended return to report any changes.

Revenue Online

Before beginning the filing process, taxpayers should make sure their information is current in Revenue Online, the state's internet tax portal. They should check their username, password, and address; and verify any estimated tax payments they've made. Those who don't have a Revenue Online account can sign up on the agency's website.

Revenue Online is the best way to communicate with the department. Refunds for taxpayers that are new to filing returns may be delayed so the department can verify their identity. Taxpayers who receive a letter requesting identity verification are urged to respond promptly through Revenue Online to speed the processing of their return.

Refunds can also be delayed when errors are identified on returns. Taxpayers who receive a letter requesting additional information are urged to respond promptly through Revenue Online to speed the processing of their return.

Download Form 1099-G

The department reminds taxpayers that it no longer mails taxpayers Form 1099-G, which reports the amount of refunds, credits, or other offsets of personal income, statewide transit individual tax, TriMet transit self-employment tax, or Lane transit self-employment tax during the previous year.

Only those who itemized deductions on their tax year 2023 federal income tax return will need a Form 1099-G to file their tax year 2024 return. Those taxpayers can view and download their Form 1099-G through Revenue Online. 

Taxpayers who received unemployment insurance or Paid Leave Oregon benefits in 2024, will receive a separate 1099-G by January 31 from the Oregon Employment Department.

Free filing options

Free electronic filing through the combination of IRS Direct File and Direct File Oregon is available this year. Taxpayers are encouraged to use the IRS Eligibility Checker to see if they qualify to file directly with the IRS and the state. An instructional video on how to use the direct file option is now available on the Department of Revenue You Tube page.

In addition to IRS Direct File and Direct File Oregon, other free filing options will also open today. Free guided tax preparation is available from several companies for taxpayers that meet income requirements. Free fillable forms are available for all income levels. Using links from the department's website ensures that both taxpayers' federal and state return will be filed for free.

Free and low-cost tax help

Free tax preparation services are available for low- to moderate-income taxpayers through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information about free tax preparation services.

Taxpayers can sign up for the new "Oregon Tax Tips" direct email newsletter to keep up with information about tax return filing and how to claim helpful tax credits.