Oregon Taxpayer Alert on Kicker Refunds
Oregon officials are notifying taxpayers who file paper income tax returns about a potential two-month delay in their state kicker refunds. Many individual taxpayers might see refunds amounting to hundreds of dollars, but these will only be issued once they’ve filed their returns.
On a different note, the Oregon Department of Revenue shared on Thursday that those who e-file their state tax returns can expect to receive their kicker cash within about three weeks.
Additionally, the Internal Revenue Service and the state of Oregon announced that the window for filing federal and state taxes opens on January 26. If taxpayers file electronically on that day, they should start receiving kicker refunds and other state tax refunds by February 15.
However, those who choose to mail their paper returns after January 26 are likely to see their refunds around April 15, as explained by Robin Maxey, a spokeswoman from the Department of Revenue.
“Some individuals might file paper returns right when tax season kicks off on January 26, but the reality is refunds will take until mid-April,” Maxey mentioned.
She added, “We felt it was important for people to be aware of this delay.”
The Department indicated that the delay in processing paper returns is due to the IRS taking longer than expected to provide necessary tax forms and information to Oregon. This slowdown follows cuts to the IRS workforce last year under the Trump administration.
“The good news is that there’s no need for anyone to wait,” remarked Megan Dennison, the Department of Revenue Administrator. “The simple solution? File electronically.”
This situation might encourage the few remaining paper filers to consider e-filing, which has become increasingly popular over the years. Back in 2016, about 86% of taxpayers in Oregon opted for electronic filing. By 2020, that number had grown to 90%, and almost 95% of individual returns were electronically filed last year.
Typically, around five out of six paper filers are expecting refunds, leading officials to urge taxpayers to file electronically for their benefit.
The kicker is meant to benefit everyone. However, whether it stays as cash in your pocket usually depends on your tax situation. If you have a significant tax obligation in 2025, the kicker funds will count as a deduction. Conversely, if a refund is anticipated, you could see an even larger amount when the kicker comes into play.
Simply put, roughly 65% to 85% of Oregon taxpayers end up owing some form of refund each year.
While the Department of Revenue currently cannot predict the average kicker amount for this tax season, historical data shows kickers range from $80 to as high as $2,910. This year, however, many residents can expect their refunds to be in the hundreds.
If you’re curious about your potential refund, take a look at your 2024 tax form and input some data into The Oregonian/OregonLive’s Kicker Refund Calculator. You can also input your social security number to see what’s next using the state kicker calculator.
