Some Oregon residents will receive a surprise windfall when they file their personal state income taxes next year. Officially referred to as the “Kicker,” this Oregon income tax credit is the result of the record $5.6 billion budget surplus for 2021 through 2023. The Kicker tax credit from Oregon is based on tax liability for the 2022 tax year.
Oregon income tax credit: who will get it?
In a recent news release, the Office of Economic Analysis announced the Kicker, referring to it as “the largest in state history.” This Kicker tax credit from Oregon will be credited to the taxpayers’ state personal income tax returns for 2023 (filed next year).
Eligible residents will be able to claim the Kicker tax credit as a refundable tax credit when they file their 2023 state tax returns.
The Kicker tax credit from Oregon becomes available when the state collects more revenue than the threshold. However, the possibility of this tax credit is only allowed once every two years, and there is no guarantee of the Kicker rebate in 2026.
Thus, it is important that you don’t miss out on the income tax credit from Oregon this year if you qualify.
To qualify for the Kicker credit, you must have filed a 2022 state tax return, as well as file a 2023 state tax return (even if you are not required to). Also, there must have been tax due on your 2022 state return (before applying tax credits).
Owing to the above requirements, it is possible that some may not qualify for the Kicker tax credit. For instance, those who only had non-taxable income in 2022 won’t be able to claim the credit this year.
Kicker tax credit from Oregon: how much money to expect
The Kicker credit amount is 44.28% of 2022 state taxes owed before applying any credits. This means that those with higher state tax liability are likely to receive a larger credit than those with lower tax liability. You can easily calculate the amount of your credit by multiplying line 22 of your 2022 Form OR-40 by 44.28%.
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Alternatively, you can also use an online calculator called What’s My Kicker? to find your income tax credit. You will have to provide your full name, Social Security number, and filing status for tax years 2022 and 2023 to use the calculator.
It is possible that some taxpayers actually will receive less credit than what they’ve calculated. This could be because the state can use some or all of the Kicker credit to pay for certain state debts, such as child support, state tax debt, some types of student loans, and court fines. Not only can the state use the Kicker credit, but they can use the entire 2023 Oregon state tax refund to offset any of the above-mentioned debts.
Visit the state “Kicker” credit page of the Department of Revenue website to get more information on this Oregon income tax credit.
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