How much will my Oregon tax kicker be?
The summary states that the unexpected revenue growth seen this year has left Oregon with unprecedented balances this biennium, followed by a record kicker in 2023-25. The projected personal kicker is $3.0 billion, which will be credited to taxpayers when they file their returns in Spring 2024.
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%.
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.
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.
You can prove this to yourself by writing down your Oregon refund, then going in to TurboTax and setting the 2018 state tax to zero. Your Oregon refund should drop by the amount of the kicker (because you just set the amount of the kicker to zero).
The Oregon surplus credit, known as the “kicker,” is a way for state government to return some of your taxes to you when revenues are more than predicted. The Oregon Department of Administrative Services determines whether there is a surplus and the amount to be returned to taxpayers as a kicker.
PORTLAND, Ore. (KOIN) — Oregonians can expect a tax credit on their 2021 state income tax returns from a $1.9 billion tax surplus, or “kicker,” the Oregon Office of Economic Analysis announced Tuesday.
The Oregon Department of Revenue said Tuesday that 2021's kicker rebate for state taxpayers will be 7.341% of their tax liability for 2020. The state's unusual rebate system is triggered when tax revenue exceeds forecast revenue by 2% or more in the biennial budget cycle.
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.
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.
How much tax do you pay on $10000?
The 10% rate applies to income from $1 to $10,000; the 20% rate applies to income from $10,001 to $20,000; and the 30% rate applies to all income above $20,000. Under this system, someone earning $10,000 is taxed at 10%, paying a total of $1,000. Someone earning $5,000 pays $500, and so on.
Instead of kicker checks, the surplus will be returned to taxpayers through a credit on their 2021 state personal income tax returns filed in 2022. 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.
Your adjusted gross income (AGI) consists of the total amount of income and earnings you made for the tax year minus certain adjustments to income. For tax year 2021, your AGI is on Line 11 on Form 1040, 1040-SR, and 1040NR. It is located on different lines on forms from earlier years.
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Income Tax Brackets.
| Married, Filing Separately | |
|---|---|
| Oregon Taxable Income | Rate |
| $0 - $3,650 | 4.75% |
| $3,650 - $9,200 | 6.75% |
| $9,200 - $125,000 | 8.75% |
Your deductions changed.
A tax refund means that the government took more out of your paycheck than you actually owed. You have some measure of control over how much comes out of each paycheck, however, and changes to your deductions could lead to a smaller refund (or a bill from the IRS).
You may have received a lower refund than expected because your refund was applied to a past due debt. Some examples of past due debt include federal or state income taxes, state unemployment compensation debts, child support, or federal nontax debt such as student loans.
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.
Personal income taxpayers already received a kicker rebate totaling $1.9 billion when they filed their returns this year. Taxpayers will get their share of the kicker forecasted Wednesday to be $3 billion in 2024 in the form of a tax credit or tax refund when they file their 2023 income taxes that spring.
Oregon's personal exemption credit
This credit is available to you if: 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.
The Oregon Department of Revenue has a calculator on its website that lets people find their kicker amount by plugging in their Social Security number. The state may withhold all or part of the kicker for people who owe back taxes, child support or court fines.
What is the Form 40 Oregon resident tax return?
Oregon Form 40 is used by full-year residents to file their state income tax return. The purpose of Form 40 is to determine your tax liability for the state of Oregon. Nonresident and part-year resident filers will complete Oregon Form OR-40-N or Form OR-40-P instead.
On September 12, the credit was made official, meaning nearly $2 billion will return to Oregon taxpayers next year. 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%.
Oregon taxpayers will receive $1.9 billion kicker.
The 10% rate applies to income from $1 to $10,000; the 20% rate applies to income from $10,001 to $20,000; and the 30% rate applies to all income above $20,000. Under this system, someone earning $10,000 is taxed at 10%, paying a total of $1,000. Someone earning $5,000 pays $500, and so on.
Oregon's unique kicker rebate is triggered when tax revenues for a biennium come in more than 2% above economists' forecast from the start of the budget cycle, in this case the May 2021 revenue forecast. The state must return the full amount above the forecast to taxpayers.
