Oregon Residents To Receive Nearly $1,000 Each Under Colossal Tax Kicker

Oregon has announced that it will return more than $5.61 billion in tax surplus refunds to its residents, with taxpayers being paid in the form of an income tax credit known as "kicker."

The Oregon Office of Economic Analysis (OEA) determines whether there's a tax surplus—which a state reports when revenues are more than predicted—every two years, but the amount this year is unprecedented.

The surplus on 2023 returns is the largest in Oregon's history. The record kicker was confirmed on Monday by officials who said that the Beaver State will manage to pull such an incredible feat thanks to the huge revenue surplus in the years between 2021 and 2023.

It will be returned to the state's taxpayers through a credit on their 2023 state personal income tax returns filed next year. This credit, the kicker, will be based on tax liability for the 2022 tax year, according to the state.

But before you get your money, if you're an Oregon taxpayer, there are a couple of things you should check. Those who have not filed a 2022 tax return, should file it now if they want to receive the historic kicker credit next year. More information on how to get the kicker credit will be provided by the state when taxpayers file their personal income tax returns.

So, how much will Oregon taxpayers be getting in their pockets?

To know exactly what they will be receiving, taxpayers can multiply their 2022 tax liability before any credits by 44.28 percent or use a tool made available by the state on Revenue Online, called "What's my Kicker? Calculator."

The typical Oregon taxpayer can expect to receive $980 in credit, according to state economists mentioned by the Associated Press.

There's also an option for taxpayers feeling generous to donate their kicker credit to the Oregon State School Fund for K-12 public education, but it only works when deciding to give the entire amount. The entire sum or part of it can also be donated to any of 29 charities approved by the Charitable Checkoff Commission.

Under Oregon law, the state is obliged to return its tax surplus when its actual revenues exceed official projections by at least 2 percent.

News of the kicker paints a positive picture for Oregon, which in April was listed among the states which had one of the worst recoveries since the pandemic across the country.

Oregon was ranked 43rd in the country for its economic outlook, according to the annual report "Rich States, Poor States" by the nonprofit organization American Legislative Exchange Council.