Proposed Oregon bill could reimburse taxed stimulus checks

MEDFORD, Ore. – As tax season approaches some are surprised to see their stimulus money getting taxed. State lawmakers said just under 900,000 Oregonians will be taxed on their stimulus checks this tax season. But a new bill in the State Senate hopes to reverse that.

Republican State Senator Dick Anderson said the tax on those checks is due to a loophole in the state tax code.

The Stimulus Check Protection Act would send a reimbursement check for taxed stimulus money, similar to the Oregon Kicker Refund.

A Medford CPA told NBC5 News while a reimbursement check could be on the table there are a number of ways this could pan out.

So, as for this tax season, he said taxpayers need to be proactive.

“If you’re doing your taxes yourself, you need to be really up on the current laws cause they have changed dramatically over the last year,” said Gerry Horowitz, Managing Director of Wise & Co.

Horowitz said when his clients found out about the extra tax they were not happy.

For people who haven’t already received their stimulus check, but get it in their tax returns, Horowitz said they may get taxed on it next tax season.

As for the bill, a first reading took place on the Senate floor yesterday. It now is headed to the Senate President’s desk to get referred to a committee.