Oregonians need to use state, not federal W-4 withholding form

New federal form doesn't use allowances, as Oregon does

SALEM, Ore. (KTVZ) -- The Oregon Department of Revenue is notifying taxpayers that any changes to their state withholding must be made on Form OR-W-4 beginning Jan. 1, as the new federal Form W-4 can’t be used for Oregon withholding purposes.

The federal form doesn’t use allowances, the agency said, and Oregon withholding is calculated using allowances.

Previously filed Oregon or federal withholding statements (Form OR-W-4 or Form W-4), which are used for Oregon withholding, can remain in place if the taxpayer doesn’t change their withholding elections.

“We encourage Oregon taxpayers to check their withholding for tax year 2020,” said Personal Tax and Compliance Division Administrator JoAnn Martin. “Not withholding enough during the year could lead to an unexpected tax bill in 2021.”

Employers should provide Form OR-W-4 to employees any time an employee provides them a new federal Form W-4.

While everyone should check their withholding annually, some groups of taxpayers are more at risk for under-withholding than others, including those who:

• Started a new job in 2019 or later.
• Updated their federal Form W-4 in 2018 or 2019.
• Previously claimed federal deductions that were impacted by federal tax law changes, such as the employee business expense deduction.
• Live in a two-earner household.

Oregon’s Form OR-W-4 and Revenue’s updated online withholding calculator allow taxpayers to determine the correct amount to withhold for Oregon personal income tax. Form OR-W-4 and the calculator are available on the department’s website at www.oregon.gov/dor.

Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 800-886-7204.