Oregon Taxpayers to Receive Record Kicker on 2023 Returns

The Oregon Office of Economic Analysis (OEA) has confirmed a more than $5.61 billion revenue surplus in the 2021-2023 biennium, triggering a tax surplus credit, or “kicker,” for the 2023 tax year.

The surplus—the largest in state history—will be returned to taxpayers through a credit on their 2023 state personal income tax returns filed in 2024. The credit is based on tax liability for the 2022 tax year. Taxpayers who have not yet filed a 2022 tax return, should file now so they can claim their kicker credit when they file their 2023 tax return.

To calculate the amount of their credit, taxpayers can multiply their 2022 tax liability before any credits—line 22 on the 2022 Form OR-40—by 44.28 percent. This percentage is determined and certified by OEA. 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.

Personal income taxpayers can also determine the amount of their kicker using a What’s My Kicker? Calculator available on Revenue Online. To use the calculator, taxpayers will need to enter their name, Social Security Number, and filing status for 2022 and 2023.

Taxpayers are eligible to claim the kicker if they filed a 2022 tax return and had tax due before credits. Even taxpayers who don't have a filing obligation for 2023, still must file a 2023 tax return to claim their credit. The 2023 Oregon personal income tax return instructions will include detailed information on how to claim the credit on Form OR-40 for full-year Oregon residents, Form OR-40-P for part-year residents, and Form OR-40-N for nonresidents. Composite and fiduciary-income tax return filers are also eligible.

Taxpayers should keep in mind that the state may use all or part of their kicker to pay any state debt they owe, such as tax due for other years, child support, court fines, or school loans.

For information, visit the Oregon surplus kicker page.