As a PERS retiree, you may be impacted by Oregon Department of Revenue rules regarding state income tax allowances.
The Department of Revenue prohibits PERS benefits recipients from claiming any state income tax allowances if they meet either of the following criteria:
- File single withholding and receive more than $100,000 in gross annual PERS benefits.
- File married withholding and receive more than $200,000 in gross annual PERS benefits.
Additionally, benefit recipients who meet the above criteria cannot claim they are exempt from state taxes if their PERS benefits are subject to Oregon income tax.
How does this affect me as a benefit recipient?
PERS is required to amend your state tax withholding to zero allowances if you filed an allowance other than zero and meet one of the following criteria:
- Filed single and receive more than $100,000 in gross annual PERS benefits.
- Filed married and receive more than $200,000 in gross annual PERS benefits.
PERS also is required to amend your withholding if you live in Oregon, claimed exempt from Oregon taxes and receive more than $100,000 in gross annual PERS benefits.
How do I get more information?
You can find the Department of Revenue's Oregon withholding tax formulas publication and other state-tax-related information on Revenue's Forms and publications library webpage.