I believe that most of us assumed that the stimulus checks we received earlier this year were considered to be "tax free." But I was surprised when I read through my new Oregon Tax booklet that we must deduct the stimulus amounts from our federal tax liability before figuring out our Oregon taxes.
This would mean, based on a 9% tax rate, that a family of four would deduct the $1800 they received from their liability that they would either owe, or have their refund reduced by, an additional $162 in taxes this year.
I doubt many of us expected that to happen. It seems the state just couldn't let that federal money slip by without getting their 9% portion of it.
A web site explaining this is here: