Oregonians can expect a 2021 tax kicker credit


There was enough surplus in Oregon’s revenue that taxpayers will likely see a top-up credit on their 2021 returns.

PORTLAND, Oregon – The Oregon Office of Economic Analysis (OAS) has confirmed that there will be an excess tax credit or “kicker” for the 2021 tax year that will be filed in 2022.

According to the OAS, there was a fiscal surplus of nearly $ 1.9 billion. In Oregon, the kicker goes into effect when actual state revenues exceed expected revenues by at least 2%. Then, an amount calculated by AEO is returned to taxpayers through a credit on their tax returns. The kicker law is unique to Oregon.

To calculate your credit amount, multiply your tax payable for 2020 before any credit – line 22 of the 2020 OR-40 form – by 17.341%, a percentage determined by the OFC. Taxpayers who have claimed a credit for tax paid to another state should subtract the credit amount from their obligation before calculating the credit.

For anyone filing their income tax, there is a calculator on the Oregon Department of Revenue website that will calculate your kicker amount for you. You will 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 tax return for 2020 and had tax payable before the 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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Detailed information on how to claim your credit can be found in the Oregon 2021 Personal Income Tax Return Instructions: Form OR-40 for Year-Round Residents of Oregon, Form OR-40- P for residents of part of the year and form OR-40- N for non-residents. Composite and trustee tax filers are also eligible.

The state can use all or part of your kicker to pay off any state debt owed, which can include things like taxes owed for other years, child support, court fines, or school loans.

Free tax preparation services are available for low and moderate income taxpayers through AARP and CASH Oregon. United Way also offers free tax assistance through its 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 send an email to [email protected]

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