Oregon’s kicker credit occurs when actual state revenues exceed forecasted revenues by 2% or more over the two-year budget cycle. The excess, including the 2% trigger amount, is returned to taxpayers through a credit on their following year’s tax returns.
The latest Oregon Economic and Revenue Forecast released early this year revealed the state’s actual revenue in 2019-21 was better than projected, triggering expectations for a kicker credit.
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%. You can also visit https://revenueonline.dor.oregon.gov/tap?Link=WMK for the Department of Revenue’s “What’s My Kicker” calculator. Taxpayers who claimed a credit for tax paid to another state would need to subtract the credit amount from their liability before calculating the credit.
The State of Oregon reserves the right to use part or all of your kicker to pay for any state debt you owe, including child support or school loans.
For more information, visit http://www.oregon.gov/dor