Free electronic filing through the combination of IRS Direct File and Direct File Oregon will open January 27 when both the IRS and the Oregon Department of Revenue begin processing e-filed 2024 federal and state income tax returns. Paper-filed return processing will begin in mid-February.
The IRS estimates that 640,000 Oregon resident taxpayers preparing their own tax returns in 2025 will have the option to electronically file both their federal and state income tax returns for free by filing directly with the IRS and the state.
Taxpayers are encouraged to use the IRS Eligibility Checker to see if they qualify to file directly with the IRS and the state.
E-filed returns will be processed in the order they are received. However, as in years past, the department won't be issuing personal income tax refunds until after February 15. A refund hold is part of the department's tax fraud prevention efforts and allows for confirmation that the amounts claimed on tax returns match what employers and payers report on Forms W-2 and 1099.
E-filing is the fastest way for a taxpayer to get their refund. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund two weeks sooner than those who file paper returns and request paper refund checks.
The department reminds taxpayers that taking a few easy steps in the next few weeks can make preparing their 2024 tax return easier in 2025.
Free filing options open January 27
In addition to IRS Direct File and Direct File Oregon, other free filing options will also open January 27. Free guided tax preparation is available from several companies for taxpayers that meet income requirements. Free fillable forms are available for all income levels. Using links from the department's website ensures that both taxpayers' federal and state return will be filed for free.
Free and low-cost tax help
Free tax preparation services are available for low- to moderate-income taxpayers through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information about free tax preparation services.
Voluntary self-identification of race and ethnicity information
New for 2025, Oregon taxpayers and Oregonians can voluntarily provide information about their race and ethnicity on Form OR-VSI when they file their 2024 taxes. Providing this information may be done separately from a tax return through Revenue Online. The information will be confidential. It can only be used for research purposes to analyze potential inequities in tax policy. The new option is a result of Senate Bill 1 in 2023.
Use Revenue Online to verify payments
Taxpayers can verify their estimated payments through their Revenue Online account.
Through Revenue Online, individuals can also view letters sent to them by the department, initiate appeals, make payments, and submit questions. Visit Revenue Online on the Revenue website to learn more.
Those who don't have a Revenue Online account can sign up on the agency's website.
To check the status of their refund after February 15, or make payments, taxpayers can visit Revenue's website. You can also call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon. For TTY (hearing or speech impaired), we accept all relay calls.
Source: Oregon Department of Revenue