Oregon Kicker Credit
The Oregon Kicker Credit is a refundable tax credit available to Oregon residents based on their prior year’s personal income tax liability. It is designed to return a portion of the state’s budget surplus to taxpayers.
How the Kicker is Calculated
For the 2025 tax year, the kicker is calculated as 9.863% of your total Oregon personal income tax liability from the previous year (2024). This amount is determined before applying any credits or payments, except for credits for income taxes paid to another state on mutually-taxed income.
Eligibility Requirements
To qualify for the kicker, you must:
- File your 2024 Oregon return before filing your 2025 return.
- Have an Oregon personal income tax liability for 2024.
- File a 2025 Oregon return, even if you are not otherwise required to file.
Prorated Kicker for Joint Filers
If you are married and filing jointly, you may need to prorate the kicker based on each spouse’s share of the 2024 Oregon Adjusted Gross Income (AGI). The proration is calculated by dividing your individual share of AGI by the total household AGI, then multiplying that percentage by your total kicker amount.
Donating Your Kicker
Taxpayers have the option to donate all or part of their kicker to the Oregon State School Fund. To donate fully, enter $0 on Form OR-40-N, line 57 or Form OR-40-P, line 56. If donating only a portion, you must first claim the full kicker on your return and then make a payment to the Oregon State School Fund with “State School Fund” noted on the memo line.
Where to Claim the Kicker
The kicker is claimed as a credit on your 2025 Oregon tax return. For Form OR-40, refer to line 32. For nonresidents, refer to line 57 (Form OR-40-N) or line 56 (Form OR-40-P).
Source:
Form OR-40
Form OR-40-NP Instructions
Publication OR-17
Schedule OR-DONATE
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.