Yes, there is an Oregon surplus "kicker" credit available for taxpayers in 2024. This unique mechanism is a credit against your Oregon income tax liability, returning a portion of state revenue to taxpayers when collections exceed forecasts by a certain threshold.
Understanding the Oregon Kicker Tax Credit
The Oregon "kicker" is a significant feature of the state's tax system, designed to return surplus tax revenue to taxpayers. It's not a new concept; Oregon's constitution mandates this rebate when actual state revenues surpass the forecasted amount by at least 2% over a two-year budget cycle. For the 2024 tax season, this surplus has indeed triggered a "kicker" credit.
Here are some key aspects of the 2024 Kicker Credit:
- Nature: It is a non-refundable tax credit, meaning it can reduce your Oregon income tax liability down to $0, but generally won't result in a direct refund if your credit exceeds your liability.
- Trigger: Activated when state revenues exceed projections over a biennium.
- Eligibility: Generally available to taxpayers who filed an Oregon tax return and had a tax liability in the relevant year.
Key Details for the 2024 Kicker Credit
| Aspect | Details |
|---|---|
| Credit Type | Surplus "Kicker" Credit |
| Applicable Year | 2024 (reflecting the 2021-2023 biennium revenue surplus) |
| Basis of Credit | Your 2022 Oregon tax liability |
| Calculation Rate | 44.28% of your 2022 Oregon tax liability |
| Reference Line | Line 22 of your 2022 OR-40 form (Oregon Tax Liability before credits and payments) |
How to Calculate Your 2024 Kicker Credit
Calculating your specific 2024 kicker credit is straightforward, based on your previous year's tax information.
- Locate Your 2022 OR-40 Form: You will need your Oregon individual income tax return from the 2022 tax year.
- Identify Your 2022 Oregon Tax Liability: Find the amount reported on line 22 of your 2022 OR-40 form. This figure represents your Oregon tax liability before any credits or payments.
- Apply the Kicker Percentage: Multiply your 2022 Oregon tax liability (the amount from line 22) by the specified kicker percentage.
- Calculation: 2022 Oregon Tax Liability (Line 22 of OR-40) x 0.4428
- Example: If your 2022 Oregon tax liability on Line 22 was $2,500, your kicker credit would be $2,500 * 0.4428 = $1,107.
The Oregon Department of Revenue also provides tools to assist taxpayers in calculating their specific kicker credit amount, ensuring accuracy and ease of access.
