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Pandemic changes may impact tax returns

State agencies urge workers to check if they qualify for Earned Income Tax Credit

State agencies urge workers to check if they qualify for Earned Income Tax Credit SALEM, Ore. (KTVZ) As the 15th anniversary of the Earned Income Tax Credit Awareness Day approaches on Friday, the Oregon Department of Human Services and the Oregon Department of Revenue are encouraging all workers with income in 2020 to check their Earned Income Tax Credit eligibility. The Earned Income Tax Credit, which may give families up to $6,660 back when they file taxes, is a federal and state tax credit for people making up to $56,844 per year. Too many Oregonians miss out because they simply don’t know about it.

Cannabis Retailers Under Duress: The Problem And The Solution

Even though there are record revenues and record state tax receipts, cannabis retailers are struggling. IRS Section 280e puts a heavy burden of additional federal business taxes on cannabis retail businesses. The greatest share of business risk is borne by main street: smaller businesses, and women & BIPOC-owned businesses. IRS Section 280e puts the effective tax rate for cannabis operators at between 60% – 70%. Retailers are hit hardest by this policy. Data on cannabis retailer sales tax payments in Oregon indicate that retailers are increasingly falling behind on their payments. On average, retailers are behind nearly $20,000 in state taxes. How will they suddenly be able to pay an annual average of $146,000 in Federal taxes?

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