Update for Owners of Pass-Through Entities
Oregon has released regulations allowing owners of eligible Pass-Through Entities (PTE) to pay their individual Oregon tax liability at the entity level, and take a personal credit for the tax paid by the entity. Eligible entities include Partnerships and S-Corporations, that meet specific requirements.
The benefit to this election is the ability for PTEs to deduct state income taxes at the entity level, avoiding the federal limitations on individual tax returns. This could also be beneficial to individuals who don’t typically itemize their deductions.
The first required Oregon estimated tax payment deadline is June 15, 2022, and registration for eligible entities opens June, 6, 2022.
With the first required payment deadline rapidly approaching, feel free to reach out to our staff if you have further questions on this topic, or if you have questions about registering your entity.
Read more about this topic at Oregon.gov
Updates for Filing Your 2021 Tax Return
Child Tax Credit
In January 2022, the IRS will send Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance child tax credit payments with their tax records. Individuals can also create or log in to IRS.gov online account to securely access their child tax credit payment amounts.
Economic Impact Payment (Stimulus Payments)
In early 2022, the IRS will send Letter 6475 that contains the total amount of the third economic impact payment and any plus-up payments received. People should keep this and any other IRS letters about their stimulus payments with other tax records. Individuals can also create or log in to IRS.gov online account to securely access their economic impact payment amounts.
Hannah Erickson, Staff Accountant for Devon A. Gaines, CPA, PC, has been featured in a Central Oregon Community College student success story! Read full article