Any unemployment insurance benefits you receive may be taxable if you are required to file a tax return. Under federal law, the first $2,400 of unemployment insurance benefits received in 2009 is not subject to Federal taxes. The passage of Ballot Measure 66 made the first $2,400 exempt from Oregon State tax as well.

We report to the IRS and Oregon Department of Revenue all taxes withheld on the benefits you received. How Ballot Measure 66 affects the taxes you should have paid on those benefits will be determined at the time you or your tax professional files your tax return. The passage does not require a new 1099-G from the Employment Department.

For more information about how Federal and state tax laws apply to your benefits, consult IRS Publication 505 (Tax Withholding and Estimated Tax) and the Oregon Department of Revenue.