Bend, Oregon News: Tax Surplus Announcement
BEND, Ore. — On Friday, the Oregon Department of Revenue revealed that the state anticipates a surplus of $1.41 billion for the 2023-2025 biennium, which means Oregonians can look forward to the kicker tax credit in 2026.
These tax credits are provided every two years. Eligible residents who file their 2024 and 2025 tax returns will reap the benefits next year. The kickback either enhances your state refund or helps to lessen your tax obligations.
The Department has created a site where individuals can find out how much they’ll receive through the kicker. You can check it out at “What’s my kicker? Calculator.”
Interestingly, two years back, the state reported an unprecedented surplus of $5.61 billion.
The Oregon Office of Economic Analysis (OEA) has confirmed the surplus amount, which activates the tax surplus credit, or “kicker,” for the 2025 tax year.
This surplus will be returned to taxpayers via a deduction on their 2025 tax returns, which will be filed in 2026. It won’t be issued as a cash check. The kicker can either increase your Oregon tax refund or decrease what you owe in state taxes.
Only those who’ve submitted a tax return for both the 2024 and 2025 tax years will be eligible for the kicker. This credit corresponds to a percentage of your personal income tax bill from 2024. If you haven’t filed your 2024 return yet, it might be wise to do so soon. This way, you’ll be in line to claim the credit when filing for 2025 next year.
To figure out the kicker amount, taxpayers can multiply their 2024 income tax liability (before any credits) by 9.863 percent, a figure decided by the OEA. If you claimed credits for taxes paid elsewhere, remember to subtract those from your total before calculating.
There’s also a calculator available for those wanting to estimate their kicker amount. Just head over to “What’s my kicker? Calculator” on Revenue Online, where you’ll need to input your name, Social Security number, and filing status for the respective years.
Even if you aren’t obligated to file for 2025, you’ll still need to submit a tax return to access the kicker credit.
The 2025 Oregon Personal Income Tax Filing Instructions will provide more details on claiming the deduction. Residents in Oregon should use Form OR-40, part-year residents have Form OR-40-P, and nonresidents utilize Form OR-40-N. Combined and fiduciary income tax filers are eligible as well.
It’s important for taxpayers to keep in mind that the state may use some or all of the kicker to settle debts, which could include back taxes, child support, court fines, loans, etc.
If desired, taxpayers can donate their kicker to the Oregon State Schools Fund for public education, but it must be the full amount and is not refundable.
Additionally, taxpayers can opt to donate part or all of their refund to any of the 29 charities recognized by the Charity Checkoff Board. To designate donations, use Form OR-DONATE.
More information can be found regarding the Oregon Surplus “Kicker” Credit on the Department of Revenue’s website, along with a fact sheet for reference.
If you haven’t filed your 2024 Oregon tax return, it might be a good idea to do that electronically. There’s free tax preparation help available for both federal and state returns. Some companies even provide free software for eligible taxpayers. Check out the Department of Revenue’s website for more details.
In January, the Department of Revenue is expected to announce when taxpayers can start filing their 2025 returns. They plan to keep offering direct filing options for free electronic submissions, making it quicker to claim and receive the kicker by opting for electronic filing with direct deposit.
For tax forms, refund statuses, or payment inquiries, visit www.oregon.gov/dor or reach out via phone at 800-356-4222 for support in Oregon or 503-378-4988 for those outside the Salem area.
