Oregon Begins 2025 Income Tax Returns

Starting Monday, Oregon will kick off the processing of 2025 income tax returns. Though, let’s be honest, filing taxes can be a real headache for many. And with the recent cuts to some free tax prep services, it’s become even more daunting.

Approximately 15% of Oregonians skip filing their taxes each year. Mostly, this is because they fear a hefty tax bill or feel overwhelmed by the complicated forms. Ironically, many of these individuals miss out on significant refunds, and numerous nonprofit organizations are stepping in to help them navigate the process.

Take Hilario Gonzalez, for example. She immigrated from Colombia a few years back and is currently attending school while working in a hotel in Portland. This situation means that she has reportable income and needs to file tax returns—a complicated situation even for native English speakers. Gonzalez isn’t fluent yet, so she sought assistance from the Multnomah Family Services Program CASHOregon, which supports individuals in meeting their tax obligations.

“The plan is to comply with all the rules and regulations regarding tax payments,” Gonzalez mentioned via an interpreter. “I just want to be sure I’m doing everything correctly.” And even under these taxing circumstances, she ended up with a $1,700 refund.

“That was fantastic for me,” she laughed. “If I get a refund again this year, I’m thinking of using it to buy a new computer for school.”

Gonzalez qualified for this refund because her employer withheld too much money, earning her the tax credit. “The Earned Income Tax Credit is one of the most effective anti-poverty tools in the U.S.,” said Riley Eldridge, director of CASHOregon. “People don’t often see it that way, but it’s really woven into the tax code.”

Slightly concerning is the fact that only about 78% of eligible Oregonians actually claim this credit, mainly due to not applying for it, according to Eldridge.

“There’s this fear surrounding the process… People just don’t understand it well,” he explained. CASHOregon has trained around 360 volunteers for this tax season. However, they are just one of ten volunteer programs in Oregon.

“Last year, we assisted around 10,000 families, helping them secure about $14 million in refunds,” Eldridge noted. “These families typically have an average annual income of $28,000. That’s rent, transportation, food—everything.”

Interestingly, CASHOregon doesn’t just alleviate tax burdens. There are instances where they discover unclaimed refund checks. For instance, Eldridge mentioned a couple with two children earning about $20,000 a year. “The Earned Income Tax Credit alone could be as high as $6,000,” he said. “And we haven’t even considered the child tax credit or other potential credits.”

Once families realize that money often goes unclaimed without filing their taxes, they’re more inclined to reach out for assistance. There are hundreds of VITA programs nationwide, but spots fill up fast. On top of that, cuts to free e-filing programs by the previous administration have impacted several VITA offerings.

For instance, CASHOregon saw a 30% reduction in staff last year due to state budget cuts. As a result, they are actively seeking more volunteers to help with tax preparation.

“If you enjoy puzzles, you might actually find tax preparation fun,” Eldridge suggested. Volunteers include everything from CPAs wanting to lend a hand to accounting students seeking experience—many individuals inspired by the help they received in the past.

One such volunteer is Pradeep Gurunathan, a researcher at Intel who first came to the U.S. as a student 14 years ago. As soon as he began securing paid internships, he found himself needing to file tax returns.

“I felt a bit like I was thrown into the deep end because I was completely unaware of the country’s tax laws,” he recalled. A kind woman from his university stepped in to assist him with the paperwork, an act of kindness he has always remembered.

“I thanked her at the time, but I also felt compelled to pay it forward,” he reflected. “So, I decided to get involved in tax assistance.” Now, with expertise in non-resident tax, Gurunathan is a treasured volunteer at CASHOregon, and they are looking for more like him.

However, it’s not an easy task. Training spans around 40 hours, and there’s a certification exam along with a background check—nobody wants their financial data exposed to identity theft.

Nonetheless, Gurunathan finds great joy in the work. He recounted helping an autistic woman who wore sunglasses and headphones in the office to manage noise. After assisting her with her return, she handed him a note that still warms his heart.

It read: “Each of us bears the imprint of the friends we have met along the way. Each of us has our own imprint—good or bad, wise or foolish. We are all imprinted by one another. Thank you.”

This year, more Oregonians are expected to file their tax returns, primarily because those who don’t risk missing out on their share of Oregon’s $1.4 billion in kicker refunds.