In a delightful turn of events for Oregon taxpayers, the Oregon Office of Economic Analysis (OEA) has recently confirmed a remarkable revenue surplus of more than $5.61 billion in the 2021-2023 biennium. This surplus is not just another statistic; it’s the trigger for the eagerly awaited “kicker” tax credit in the 2023 tax year. This article delves into the details of this exciting development and what it means for Oregon residents and taxpayers.
What is the Kicker Credit?
The Oregon Kicker is a unique tax credit mechanism that benefits taxpayers when the state experiences an unforeseen revenue surplus. In essence, it’s like a fiscal bonus for Oregon residents. The surplus funds are returned to eligible taxpayers through a credit on their state personal income tax returns for the following year.
Eligibility for the Kicker Credit:
To be eligible for the Kicker credit for the 2023 tax year, taxpayers must meet the following criteria:
- Filed an Oregon 2022 tax return.
- Had tax due before any credits on their Oregon 2022 return.
Whether you’re a resident, part-year resident, non-resident, or a composite and fiduciary-income tax return filer, you can benefit from this surplus windfall.
Calculating Your Kicker Credit:
Taxpayers can calculate the amount of their Kicker credit by either of the following methods:
- Multiply their 2022 tax liability before any credits (line 22 on the 2022 Form OR-40) by 44.28%.
- Use the “What’s My Kicker? Calculator,” a convenient tool available on Revenue Online.
This flexibility ensures that taxpayers can easily determine the amount they can expect to receive.
Charitable Options:
While many taxpayers look forward to this bonus as extra spending money, there are also options to pay it forward:
- Donate the entire Kicker amount to the Oregon State School Fund for K-12 public education. It’s important to note that this donation is permanent and cannot be revoked.
- Consider donating a portion or the entirety of your refund to any or all of the 29 charities approved by the Charitable Checkoff Commission.
These charitable options allow taxpayers to make a positive impact on their community and state.
Conclusion:
The 2023 Kicker credit, triggered by the substantial $5.61 billion revenue surplus in the 2021-2023 biennium, promises a financial boost for eligible Oregon taxpayers. Whether you plan to use this surplus for personal expenses or give back to the community, the Kicker is a welcome financial opportunity for everyone. As tax season approaches, be sure to explore your options and make the most of this unexpected windfall.