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Oregon taxpayers can expect a kicker tax credit on 2021 filings

There was enough of a surplus in Oregon's revenue that tax payers will likely see a kicker credit on their 2021 filings.
Credit: Getty Images/iStockphoto

PORTLAND, Ore. — The Oregon Office of Economic Analysis (OEA) has confirmed that there will be a tax surplus credit or “kicker” for the 2021 tax year to be filed in 2022.

According to OEA, there was a nearly $1.9 billion tax surplus. In Oregon, the kicker goes into effect when the actual state revenue exceeds the forecasted revenue by at least 2%. Then, an amount calculated by OEA is returned to the taxpayers through a credit on their tax returns. The kicker law is unique to Oregon. 

To calculate the amount of your credit, multiply your 2020 tax liability before any credits — line 22 on the 2020 Form OR-40 — by 17.341%, a percentage determined by OEA. Taxpayers who claimed a credit for tax paid to another state would need to subtract the credit amount from their liability before calculating the credit.

For anyone filing for their personal income tax, there is a calculator on the Oregon Department of Revenue’s website that will calculate your kicker amount for you. You’ll need to enter your name, Social Security number and filing status for 2020 and 2021.

You are eligible to claim the kicker if you filed a 2020 tax return and had tax due before credits. You must file a 2021 tax return to claim your kicker credit, even if you don’t have a filing obligation for the year.

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There will be detailed information on how to claim your credit in the 2021 Oregon personal income tax return instructions: Form OR-40 for full-year Oregon residents, Form OR-40-P for part-year residents, and Form OR-40-N for nonresidents. Composite and fiduciary-income tax return filers are also eligible.

The state may use some or all of your kicker to pay any state debt that is owed, which can include things like tax due for other years, child support, court fines or school loans.

Free tax preparation services are available for low- to moderate-income taxpayers through AARP and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program.

Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov.

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