Portland Municipal Tax Form FAQs: File With TaxAct

Tax News

As a taxpaying resident of Portland, Oregon, you may have some unique tax forms to file. Thankfully, TaxAct® can help you do so quickly and without hassle. But first, let’s look at some FAQs and clarify who should file these tax forms and why.

At a glance:

Portland residents may need to file and pay the SHS tax, Multnomah County PFA tax, and Arts Tax.
TaxAct can help you file and pay these taxes with ease.

What Portland tax forms must I file with my income tax return?

You may be required to file several tax forms as a Portland taxpayer, including Form MET-40, Form MET-40-NP, Form MC-40, and Form MC-40-NP. You’ll also be responsible for paying the city’s Arts Tax. We’ll go over all of these in more detail below.

While you may need to file other forms as well, TaxAct is the only consumer tax filing software that can file the specific tax forms mentioned above, so these are the documents we will focus on.

Forms MET-40 and MET-40-NP

You’ll need Form MET-40 to file Portland’s Metro Supportive Housing Services (SHS) Personal Income Tax. This tax went into effect Jan. 1, 2021, and it is a 1% personal income tax rate for taxpayers who live in Metro, work in Metro, or have income from Metro sources.

This address lookup can help you determine if you live within the Metro boundaries for tax purposes. You can also find a map of Greater Portland zip codes here.

As of tax year 2022, the SHS tax filing requirements apply to individuals with Portland Metro taxable income above $125,000 for single filers or $200,000 for joint filers, head-of-household filers, and surviving spouse filers who live in Metro (even if only for part of the year), work in Metro, or have income from Metro sources, even if not a Metro resident. Clackamas, Multnomah, and Washington counties are all within the Metro’s district, meaning if you work in these counties but live outside the Metro, you’ll still be liable for the SHS tax.

You must file a separate Metro SHS personal tax return to pay the SHS tax. Full-time residents will use MET-40. If you are a non-resident or part-year resident, you’ll use MET-40-NP. TaxAct can help you file either of these forms using our tax preparation software.

Portland still needs to announce updated instructions for tax year 2023, but if anything changes, we will update this page accordingly.

Forms MC-40 and MC-40-NP

You’ll need Form MC-40 or MC-40-NP to file the Multnomah County Preschool for All (PFA) Personal Income Tax. This tax also went into effect Jan. 1, 2021, and it is a 1.5% personal income tax (due to increase by 0.8% in 2026) for taxpayers with Multnomah County taxable income who work in Multnomah County or have income from Multnomah County sources even if you do not live there.

As of tax year 2022, the PFA personal income tax applies to single filers with Multnomah County taxable income above $125,000 or $200,000 if filing jointly. An additional 1.5% tax applies on Multnomah County taxable income over $250,000 for single filers or $400,000 for joint, head-of-household, and surviving spouse filers. To determine if you live within the Multnomah County tax jurisdiction, try searching your address using Portland Maps.

You must file a separate Multnomah County PFA tax return to pay the PFA tax. Full-time residents should use Form MC-40, and part-time or non-residents should use Form MC-40-NP. If you decide to file with TaxAct, we can help you file either form correctly.

Just like Form MET-40, we do not yet have updated figures for tax year 2023 but will update if needed once available.

Portland Arts Tax

The City of Portland also imposes a $35 Arts Tax. As a Portland resident, you must pay the Portland Arts Tax if you are 18 or older and earn $1,000 or more annually. This fixed amount applies to full-time and part-time residents — there is no tax reduction for those who only lived in Portland for part of the year.

You are exempt from the Arts Tax if you meet any of the following criteria:

You are under 18.
Your household income is at or below the federal poverty level.
You earned less than $1,000 of any kind of income during the tax year.

If you itemize your deductions on your federal tax return, you can deduct your Arts Tax payment using Schedule A.

To determine if you are a Portland resident for the purposes of this tax, look up your address using Portland Maps and verify your address has “Portland” in the jurisdiction.

When is the due date for these taxes?

The SHS tax, PFA tax, and Arts Tax are all due at the same time as your federal and state tax returns (typically April 15, unless it falls on a weekend or a holiday).

Why file your Portland municipal forms with TaxAct?

TaxAct stands out as the only e-filing consumer tax filing software that can handle these specific Portland municipal tax forms.

Plus, when you file with us, you get:

A user-friendly experience that guides you through the tax filing process step by step — you don’t have to be a tax expert to use our product.
Access to necessary Portland municipal tax forms, making TaxAct a one-stop solution for your tax filing needs.
Built-in error checks before filing to help ensure your forms are filled out correctly and minimize the risk of mistakes.

While Portland taxes may seem daunting with all these extra tax statements, TaxAct simplifies the filing process. We’ll ask you interview questions to determine how much tax you owe and what forms you need, allowing you to file all the necessary municipal documents quickly and confidently.

This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.

The post Portland Municipal Tax Form FAQs: File With TaxAct appeared first on TaxAct Blog.

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How to Make Your Travel Tax Deductible in 2024

Small Business & Rentals

We all know there has been a boom in business and personal travel these last few years. Maximizing tax deductions on these travels can significantly reduce your tax liabilities. 

In general, business travel expense deductions are only available to business owners. However, as you shall see, this doesn’t mean you don’t qualify.

This post explores the ins and outs of business travel deductions, ensuring you make the most of every business trip.

Business-related travel expenses are deductible

The IRS provides details on business travel tax deductions in IRS publication 463, and the good news is the rules allow a variety of travel expenses to be deducted, including:

Airplane, train, bus, or car travel between your home and business destinations

Transportation costs like taxi fares from airports to hotels

Shipping of baggage and business materials

Use of a personal car for business purposes

Lodging and meals (subject to the 50% rule for meals)

Dry cleaning, laundry, business calls, and tips related to these expenses

Other similar expenses deemed ordinary and necessary

As with all tax deductions, maintaining detailed records of your expenses is key, including bank and credit card statements and receipts. This basic documentation is vital to substantiate your deduction during an audit. 

Tools like Quicken make this process easy and organized. Just take photos of any documents you need and attach them to their underlying transactions.

Defining a business trip

A trip is considered business related if its primary purpose is business. Again, it’s critical to document the business reasons for your travel, particularly when combining personal activities or family time. The IRS audit guides provide examples of good documentation, including keeping minutes of meetings and maintaining schedules of conferences attended.

Family travel considerations

But what if you bring your family with you? Unfortunately, travel expenses for family members are generally non-deductible unless they’re employees of your business and their travel has a business purpose. If sharing a hotel room, the cost remains fully deductible as there’s no additional expense.

Mixing business with pleasure

When combining business with leisure, like attending a conference in Orlando, separate the expenses. The travel costs for the conference are deductible, but personal activities, like a day at Disney World, are not.

Non-business owners

If you don’t own a business, your tax deduction opportunities for travel are limited. One strategy is to invest in rental properties at popular destinations. Travel expenses for managing these properties, like visiting a rental condo in Orlando for maintenance check-ins or association meetings, are typically deductible.

Engage a tax professional

Tax laws can be complex and vary by individual situation. Consult a tax professional for advice tailored to your specific circumstances, especially for complex travel deduction scenarios.

Conclusion

Understanding and utilizing business travel deductions is a smart strategy for reducing tax liabilities. Always prioritize accurate documentation and stay informed about IRS guidelines. By doing so, you ensure that your business travel is not only productive but also financially savvy. 

Remember, every journey offers opportunities, not just for business growth but also for tax savings. Plan your trips wisely, document meticulously, and consult professionals as needed to fully leverage the tax benefits of business travel.

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