Oregon taxpayers will receive 'kicker' rebate on 2021 tax returns thanks to $1.9 billion surplus (2024)

FAQs

What is 2021 Oregon surplus kicker? ›

For 2021, your kicker is 17.341 percent of your 2020 total Oregon personal income tax liability. Depending on whether or not your filing status or marital status changed from 2020 to 2021, this amount may need to be adjusted further.

That would bring the total “kicker” rebate to $3.5 billion, which taxpayers would receive as a credit or refund on their 2023 taxes when they file in 2024.

The projected corporate kicker is $931 million, and will be retained for educational spending.

According to the Oregon Office of Economic Analysis (OEA), there was a $1.9 billion tax surplus in 2021. The kicker activates when Oregon's state revenue exceeds the expected revenue by at least 2%. When this occurs, an amount calculated by OEA is returned to the taxpayers through a credit on their tax returns.

In March 2022, the Oregon legislature voted to approve one-time $600 payments to some residents. Taxpayers who received the earned income tax credit on their 2020 state tax return, and who lived in Oregon for the last six months of 2020, were eligible to receive one payment per household.

Instead of getting separate kicker checks, the surplus will materialize as a credit on taxpayers' 2021 state personal income tax returns when they file in 2022. To calculate the amount of your credit, you can multiply your 2020 tax liability before any credits, which appears on line 22 of form OR-40, by 17.341%.

People who received unemployment in 2020 and filed taxes will receive automatic refund. People who received unemployment benefits in 2020 and filed their taxes before March 11 will receive automatic refunds on taxes they paid on up to $10,200 in unemployment.

To qualify, a member of a household must have received the Oregon Earned Income Tax Credit on their 2020 tax filing and lived in Oregon for at least the latter half of 2020. The $600 is not subject to state or federal income tax. The total amount of one-time assistance will be around $141.8 million.

Oregon's surplus credit, known as the "kicker," will be claimed as a credit on your 2021 tax return. The credit is a percentage of your 2020 tax liability. You may donate your kicker credit to the Oregon State School Fund. See your return instructions for more information.

How much will I get? To figure out your amount, multiply your 2020 tax liability before any credits (line 22 on the 2020 Form OR-40) by 17.341%. Taxpayers who claimed a credit for taxes paid to another state need to subtract that credit amount from their liability before calculating.

Will there be a 2023 Oregon kicker? ›

One likely upshot is that taxpayers will receive an even larger “kicker” tax rebate on their 2023 taxes when they file returns in 2024: $3.7 billion total, up from $3.5 billion just three months ago.

Oregon State Refund Facts

Oregon usually issues refunds within 2-weeks of receipt of an electronically filed return. If you are a part-year or non-resident of Oregon, your Oregon refund will not be issued before March.

HOW TO DETERMINE YOUR 'KICKER' CREDIT: 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 percent. This percentage is determined and certified by OEA.

You may now check on the status of Oregon tax refunds on the DOR website. The automated phone system is still available as in past years for those who do not have computer access. That number in the Salem area is 503-378-4988 or toll free throughout the rest of Oregon at 1-800-356-4222.

Eligible Refund means a refund related to overpayment of Taxes with respect to a Pre-Closing Taxable Period, but only to the extent that such refund would be available, determined without giving effect to the consummation of the transactions contemplated by this Agreement (including without giving effect to any ...

Thanks to a state law passed earlier this year, lower-income Oregon households that received the tax credit in 2020 will soon get $600 by direct deposit or mailed check. The Oregon Department of Revenue estimates that 236,287 qualifying households should receive payments in about a week.

How much California residents will receive is based on their income, tax-filing status and household size. Single taxpayers who earn less than $75,000 a year and couples who file jointly and make less than $150,000 a year will receive $350 per taxpayer and another $350 if they have any dependents.

It's estimated that 90% of direct deposits will be issued in October 2022 and 95% of all refunds will be issued by the end of the year.

To be eligible you must be reporting taxable income between $37,000 and $126,000 and the offset will be scaled as per the table below. * Your taxable income is the income you earn less any deductions you claim – not your salary. ** offset entitlement is $255, plus 7.5% of the excess to a maximum of $1,080.

You must file a return to claim the credit, even if you don't usually file a tax return. The credit is based on your 2021 tax year information, so any third Economic Impact Payments you received will reduce the amount of the credit you're eligible for.

How do I know if I can claim the recovery rebate credit 2021? ›

You'll claim the 2021 Recovery Rebate Credit when you file your 2021 tax return. If your income is $73,000 or less, you can file your federal tax return electronically for free through the IRS Free File Program.

In March, state lawmakers approved one-time stimulus payments for certain low-income workers. Residents who claimed the Earned Income Tax Credit in 2020 received $600 payments delivered by July 31, 2022. If you have questions about the payments, call the Oregon Department of Revenue at 800-356-4222.

Will my federal income tax refund be taken in the future for my benefit overpayment? Your unpaid Unemployment Insurance benefit fraud overpayment will be taken from all your future federal income tax refunds until the overpayment is paid in full.

Direct deposits or paper checks are going to people who lived in Oregon for the last six months of 2020 and claimed the Earned Income Tax Credit, a tax break for low-income workers, on their 2020 taxes.

Refunds may be smaller in 2023. Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no Economic Impact Payments for 2022. In addition, taxpayers who don't itemize and take the standard deduction, won't be able to deduct their charitable contributions.

State leaders say an estimated 23 million people qualify for the checks, which will be sent out between October 2022 and January 2023. The payment is only available to residents who have lived in California for at least 6 months in the 2020 tax year or who are living in the state by the time the check is issued.

Phone: 503-378-4988 or 800-356-4222.

INITIATIVE PETITION 10 - OREGON SENIOR PROPERTY TAX FREEZE KEY FACTS: The measure applies to the primary residence of an Oregon senior property owner(s) upon one of the resident homeowners achieving age 65 by April of the tax year in which the next property taxes are due.

Hundreds of thousands of Oregonians are eligible for the Earned Income Tax Credit but don't know it – and could be missing out on a tax credit of up to $6,935. DO I QUALIFY FOR THIS TAX CREDIT? If your income was less than $59,187 in 2022, you may be able to get this refund.

The Oregon Property Tax Freeze for Seniors Amendment may appear on the ballot in Oregon as an initiated constitutional amendment on November 5, 2024. The initiative would provide for a property tax freeze for homes of residents 65 years of age or older.

How much is the oregon kicker check this year? ›

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.

Generally, your refund is calculated by how much money is withheld for federal income tax, minus your total federal income tax for the year. (There are other factors, too, like deductions -- more on that below.) Remember that the taxes withheld from your paycheck don't always go to federal income tax.

For tax year 2018, Oregon residents filed about 1.92 million Oregon personal income tax returns, representing about 2.6 million taxpayers, which includes spouses. Those taxpayers paid a final tax after adjustments, deductions and credits on average equal to about 6% of their total income.

Oregon Ducks add commitment from top-ranked 2023 kicker Grant Meadors.

The Oregon Department of Revenue states it will start issuing personal income tax refunds on February 15, 2021. Return processing times vary depending on many factors, including complexity of the return and our verification processes.

Once TOP receives certification from the state of the past-due tax debt, the federal income tax refund may be taken to pay down the state debt. This process is referred to as offset.

(updated July 7, 2022) We issue most refunds in less than 21 calendar days. However, if you filed on paper and are expecting a refund, it could take six months or more to process your return.

Are the federal stimulus payments taxed in Oregon? The stimulus, officially called the Economic Impact Payments, are not taxed as income in Oregon. However, the payments may impact the federal tax calculations used on your Oregon income tax return.

The kicker tax credit goes into effect when the actual state revenue exceeds the forecasted revenue by at least 2%. An amount is then returned to the taxpayers through a credit on their tax returns.

Why would Oregon Department of revenue send me a letter? ›

We accept most tax returns as filed, but to ensure the accuracy of voluntary compliance, we audit a variety of returns each year. Once a return is assigned to one of our auditors, an Audit Appointment or Correspondence Letter is sent. This letter will ask you to submit information required for the audit.

A larger refund, however, is more problematic. When you get a giant sum back from the IRS, it means you really overpaid your taxes the previous year. If your most recent refund was large -- say, $2,000 or more -- then you may want to make one key change for the rest of 2022.

There's no limit on the amount your tax refund can be. However, in some cases, high-value tax refunds may be sent as a paper check instead of a direct deposit. The IRS doesn't publish the threshold for when a check is issued instead of a direct deposit, but it does limit direct deposits to three deposits per account.

(1) Return Received, (2) Refund Approved, and (3) Refund Sent.

Oregon's surplus credit, known as the "kicker," will be claimed as a credit on your 2021 tax return. The credit is a percentage of your 2020 tax liability. You may donate your kicker credit to the Oregon State School Fund. See your return instructions for more information.

Surplus lines policies are subject to three charges, which are paid quarterly: State of Oregon Premium Tax: 2% of premium and fees/charges. State of Oregon Fire Marshal Tax: 0.3% of premium and fees/charges.

​No. These credits are not income and will not be reported as income on a taxpayer's 2021 tax return. These credits are advance credits of the tax year 2021 Child Tax Credit.

HOW TO DETERMINE YOUR 'KICKER' CREDIT: 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 percent. This percentage is determined and certified by OEA.

Oregon usually issues refunds within 2-weeks of receipt of an electronically filed return. If you are a part-year or non-resident of Oregon, your Oregon refund will not be issued before March.

To qualify, a member of a household must have received the Oregon Earned Income Tax Credit on their 2020 tax filing and lived in Oregon for at least the latter half of 2020. The $600 is not subject to state or federal income tax. The total amount of one-time assistance will be around $141.8 million.

Will there be an Oregon tax kicker in 2023? ›

(Salem, OR) -- The potential income tax kicker rebate for 2023 in Oregon has grown by 500-million dollars over the forecast three months ago. The Oregon Department of Revenue is forecasting a three-and-a-half billion dollar kicker which would be paid in 2024.

Effective average tax rate: $7.00 per $1,000 of real market value for residential homes and land, giving Josephine County the lowest property tax rate in the state.

SURPLUS LINES TAXES

Most states charge an insurance premium tax to insurance companies licensed and “admitted” to do business within their borders. Generally speaking, those carriers then pass the cost of those taxes onto their policyholders by adding a comparable amount to their premiums.

Are the federal stimulus payments taxed in Oregon? The stimulus, officially called the Economic Impact Payments, are not taxed as income in Oregon. However, the payments may impact the federal tax calculations used on your Oregon income tax return.

Oregon's personal exemption credit

You can't be claimed as a dependent on someone else's return, and. Your federal adjusted gross income isn't more than $100,000 if your filing status is single or married filing separately, or isn't more than $200,000 for all others.

You can also check refund status through Oregon's automated phone system at 1-503-378-4988 or toll-free at 1-800-356-4222. This same information is required by the automated phone system. (This information is updated once per day.)