In its inaugural year, Oregon's tax relief efforts have visibly made an impact, funneling over $39 million into the livelihoods of low-income families, thanks to the Oregon Kids Credit. This new refundable personal income tax credit, birthed by the 2023 Legislature, targets low-income households with young dependents. It allows eligible families with a modified adjusted gross income (MAGI) of $25,750 or less to possibly receive up to $5,000—that's $1,000 per child for a maximum of five kids under six.
As reported this year, over 22,000 taxpayers have already managed to quickly claim $25 million in benefits from the Oregon Kids Credit. But the financial boost doesn't stop there. Together with the federal Earned Income Tax Credit and the Oregon Earned Income Credit, the total tax refund for the lowest income families could amplify to a hefty $13,770. As wonderful as this may sound, families need to actually file a tax return to unlock these gains. Insights from the Oregon Department of Revenue suggest that many still shy away from filing, potentially leaving money on the table.
The EITC specifically caters to those with an adjusted gross income of up to $66,818 in 2024, offering a maximum refundable credit of $7,830 federally. The state counterpart, the Oregon EIC, tops off at $940. All three credits are refundable, meaning taxpayers could get back more than they owe, or potentially receive a refund without having to normally file a tax return.
To truly leverage these credits, taxpayers have resources at their disposal. The state has rolled out free filing options like fillable forms and the new Direct File Oregon. With tax season in full swing, the Oregon Department of Revenue has also put volunteers in place to aid the process. They'll be on standby at libraries across Oregon, ensuring that no one will need to exclusively shoulder the often intimidating task of tax filing. For individuals without computer access, specialized computer kiosks in regional DOR offices provide the necessary tech to easily file using the free services on offer.
Further assistance for eligible families includes the Working Family Household and Dependent Care Credit (WFHDC), which assists with dependent care costs incurred from work, job searches, or education. For more comprehensive information, the Oregon Department of Revenue website is a repository of knowledge on the EITC, the Oregon EIC, the Oregon Kids Credit, and other similar tax benefits.
The breadwinners pondering over tax documents can head to the department's website to access free tax preparation sites with an interactive map. For additional queries concerning tax forms, refunds, or making payments, options like email ([email protected]) and phone (800-356-4222 toll-free from an Oregon prefix or 503-378-4988 for calls from Salem and outside Oregon) stand ready for support. The department assures assistance for hearing or speech-impaired taxpayers through all relay calls.
