A more than $1.5 billion tax surplus was confirmed by the Office of Economic Analysis (OEA) earlier this month, triggering a tax surplus credit, or “kicker,” for the 2018 tax year.
Instead of kicker checks, the surplus will be returned to taxpayers through a credit on their 2019 state personal income tax returns filed in 2020.
To calculate the amount of your credit, multiply your 2018 tax liability before any credits—line 22 on the 2018 Form OR-40—by 16 percent. This percentage is determined and certified by OEA. Taxpayers who claimed a credit for tax paid to another state will need to subtract the credit amount from their liability before calculating the credit.
You’re eligible to claim the kicker if you filed a 2018 tax return and had tax due before credits. Even if you don’t have a filing obligation for 2019, you still must file a 2019 tax return to claim your credit. There will be detailed information on how to claim your credit in the 2019 Oregon personal income tax return instructions: 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.
Keep in mind that the state may use all or part of your kicker to pay any state debt you owe, such as tax due for other years, child support, court fines, or school loans.
A What’s My Kicker? calculator will be active on Revenue’s website for personal income tax filers when filing season opens in January. To calculate your kicker, you’ll enter your name, Social Security Number, and filing status for 2018 and 2019.
Visit http://www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email firstname.lastname@example.org. For TTY (hearing or speech impaired), call 800-886-7204.