Oregon ‘Kicker’ Credit: Who Qualifies and What’s It Worth?

Oregonians have a reason to celebrate as the state is set to inject some unexpected cash into the pockets of eligible residents. The Oregon ‘kicker’ program, which refunds surplus state...




Oregonians have a reason to celebrate as the state is set to inject some unexpected cash into the pockets of eligible residents. The Oregon ‘kicker’ program, which refunds surplus state revenue to taxpayers, is making headlines for its remarkable $5.61 billion revenue surplus during the 2021-2023 biennium. This surplus, recently confirmed by the Oregon Office of Economic Analysis (OEA), is being hailed by lawmakers as the “largest in state history.” As a result, Oregonians can anticipate receiving a kicker amount that sets a new record.

Eligible residents will have the chance to claim this kicker as a refundable tax credit when they file their 2023 state tax returns. However, the opportunity to receive an Oregon kicker rebate only arises once every two years, and it’s important to note that no credit is available when there isn’t a surplus in state revenue. Therefore, there are no guarantees for claiming a credit in 2026. If you qualify, you certainly won’t want to miss out this year. Here’s what you need to know about claiming the kicker in 2024 and how much you can expect.

Who Qualifies for the Oregon Kicker?

The 2023 Oregon kicker credit, to be claimed in 2024, is based on the 2022 tax year. Although there are minimal requirements for claiming the 2023 kicker credit, taxpayers should carefully review the criteria to ensure they meet all necessary conditions:

  • You must have filed a 2022 Oregon state tax return (if you haven’t done so already, there’s still time to file).
  • You must file a 2023 Oregon state tax return, even if it is not required.
  • There must have been tax due on your 2022 state return before any tax credits were applied.

It’s important to note that some Oregon residents might not qualify for the 2023 kicker. For instance, if you had only received non-taxable income in 2022, you won’t be able to claim the Oregon kicker credit this year.

How Much is the Oregon Kicker for 2023?

The kicker rebate for every Oregon taxpayer is equivalent to 44.28% of the state taxes owed in 2022 before any credits were applied. This means that not every Oregonian will receive the same amount. Those with a higher state tax liability, typically higher earners, will receive a larger credit than those with lower tax liability, usually lower earners. As mentioned earlier, taxpayers with no 2022 state tax liability before credits cannot claim the credit.

So, how do you determine the amount you’ll receive? You can calculate your kicker credit by multiplying line 22 on your 2022 Form OR-40 by 44.28%. For example, if line 22 on your 2022 Oregon return is $5,000, your kicker credit will be $2,214. However, if the amount on your line 22 is $60, your credit will be less than $30.

Alternatively, you can make use of Oregon’s “What’s My Kicker?” calculator, which requires your full name, Social Security number, and filing status for tax years 2022 and 2023.

Oregon Tax Refund and Offsets

In some cases, the kicker amount you receive may be less than your calculated amount. This is because Oregon can use part or all of the kicker to offset certain state debts, including child support, state tax debt, some types of student loans, and court fines. It’s essential to be aware that the entire 2023 Oregon state tax refund amount is subject to offset for these debts, not just the kicker amount.

However, there’s some good news for many Oregonians this year, as state tax refund amounts will be higher. This boost can be especially helpful if you’re facing a tax offset. An additional benefit is the introduction of the new Oregon child tax credit for 2023, known as the Oregon Kids Credit, which is fully refundable and can be worth up to $1,000. Please keep in mind that there are strict income limits for claiming this credit, so not all families will qualify.

In conclusion, the Oregon ‘kicker’ is delivering a financial boost to Oregonians in 2024, thanks to the significant revenue surplus. Make sure you meet the eligibility criteria and file your taxes on time to ensure you don’t miss out on this exciting opportunity to bolster your finances.

Author: DPW Tax Team
October 18, 2023

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