Unemployment compensation received during the year is considered taxable income. You may choose to have 10% of your weekly benefit amount withheld for federal income taxes or 6% withheld for state income taxes, or both for a total withholding of 16%. All withheld taxes are immediately transmitted to the Internal Revenue Service and the Oregon Department of Revenue.
Changing your tax status after filing your initial claim requires you to complete the Authorization for Tax Withholding (1040WH) form. If you cannot download the online form, call the UI Contact Center at 877-345-3484 to have one sent to you.