With tax season in high gear, Oregonians are scrambling to quickly claim a piece of the $1.6 billion tax credit pie, already carved into by scores of taxpayers, reports the Oregon Department of Revenue. This record-breaking kicker refund has up to now seen nearly a third of its $5.61 billion total claimed, as over 950,000 returns flood in. Yet with the April 15 deadline fast approaching, there's still over $4 billion up for grabs and officials are nudging the public to get a move on.
"More than 1 million taxpayers still need to file and we are urging Oregonians not to wait until the last minute," Megan Denison, Personal Tax and Compliance Division administrator at the Oregon Department of Revenue, told the agency. The kicker credits, a windfall from the state's surplus revenue, are being distributed through a credit on the 2023 state personal income tax returns for the 2022 tax year. Denison is pushing for taxpayers to file now to ensure they meet the cutoff to claim what's owed.
To be in the running for the kicker, taxpayers must have filed for 2022 and owe Oregon state income tax before credits are applied. Notably, eligibility does not extend to those who skipped out on their 2022 tax return or didn't owe any income tax. Furthermore, those who ignored the department's missives for additional information last year have essentially ruled themselves out of the game.
Calculating the kicker involves a straightforward formula: take the 2022 tax liability, line 22 on the 2022 Form OR-40, and multiply by 44.28 percent, the certified rate from the Oregon Office of Economic Analysis. However, if an out-of-state tax credit was claimed, that number must be deducted before the kicker can be determined exactly. Taxpayers should not even try to guess their kicker amount; instead, they can use the "What's My Kicker?" tool provided by the Department of Revenue for an accurate figure. This tool requires entering personal details, such as Social Security Number and filing status of the last two years.
Different forms are required for filing depending on the residency status, all detailed on the department’s website. The state may also divert any or the entire kicker to offset any state debts a taxpayer owes, like past due taxes or child support payments. Taxpayers keen on philanthropy have the choice to donate their entire kicker to the Oregon State School Fund, or a portion to one of 29 charities approved by the Charitable Checkoff Commission using Form OR-DONATE.
For those who find the process daunting, the Department of Revenue points to free tax preparation services accessible for both federal and Oregon returns. Some software providers are offering free usage and e-filing to those who fit the bill. More information, as well as these complimentary offers, can be found on the Department of Revenue website.
