Oregon Kids Credit - New for Tax Year 2025!
The Oregon Kids Credit is a new refundable credit available for taxpayers with qualifying dependent children under the age of six at the end of the tax year. This credit aims to support working families and reduce the tax burden on households with young children.
Eligibility Criteria
- Taxpayers must have a qualifying dependent child who was under the age of six at the end of the tax year.
- The credit is available for up to five children per household.
- Only one credit per child is allowed, and the maximum credit amount is $1,050 per child.
How to Claim the Credit
To claim the Oregon Kids Credit, follow these steps:
- Complete the Earned Income Credit worksheet on Form OR-40 or Form OR-40-NP.
- Enter the number of dependent children under age six (up to 5) in line 9a.
- Enter the maximum credit amount of $1,050 per child in line 9b.
- Multiply line 9a by line 9b to get the total credit before reduction (line 9).
- Apply any credit reduction based on income (line 10).
- Subtract line 10 from line 9 to get the adjusted credit (line 11).
- Multiply line 11 by your Oregon percentage (from line 35 on Form OR-40-N or OR-40-P) to get your final Oregon Kids Credit (line 13).
Important Notes
- The Oregon Kids Credit is a refundable credit, meaning you may receive a refund even if you owe no tax.
- For more details on qualifying children, refer to the "Exemption credit" section in Publication OR-17.
- Ensure you use the correct Oregon percentage from your return to calculate the final credit amount.
Source:
Form OR-40
Form OR-40-NP Instructions
Publication OR-17
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.