Oregon taxpayers are receiving a $1.41 billion surplus refund from the 2023-2025 budget cycle and here’s everything you need to know about claiming your share of the Kicker.
Understanding the Kicker Law
What triggers it:
- Oregon’s unique kicker law is activated when state revenues exceed economic forecasts by at least 2% or more
- The kicker can occur once every two years, though it is not guaranteed
- When triggered, the surplus must be returned to taxpayers through credits on their state income tax returns
Why it happened this time:
- Strong personal income tax collections during the 2024 tax year drove the surplus
- Revenue outlook shows 2024 was a very strong year with substantial growth in dividend, interest, retirement, and capital gains income
- Conservative forecasting also contributed, as past forecasts did not fully account for investment income, estate taxes, and interest earnings
Eligibility Requirements
You must meet ALL of these criteria:
- Filed a 2024 Oregon tax return (or file one now if you haven’t yet)
- Must also file a 2025 Oregon tax return to receive the credit
- There must have been tax liability on your 2024 return before any credits were applied
Important filing note:
- If you have not yet filed your 2024 tax return, you should file now to ensure you can claim your kicker credit when filing your 2025 return next year
- Even if you are not normally required to file, you must file a 2025 return to claim your credit
Calculating Your Kicker Amount
The formula:
- Take your 2024 personal income tax liability before any credits (line 24 on Form OR-40) and multiply it by 9.863%
- This percentage is determined and certified by the Oregon Office of Economic Analysis
Special considerations:
- If you claimed a credit for tax paid to another state, you need to subtract that credit amount from your liability before calculating your kicker
- The amount varies significantly based on how much you paid in 2024 taxes, meaning higher income earners typically receive much larger kicker payments
- In past kicker years, the average refund for individuals has ranged from a few hundred dollars to over $1,000
Using the calculator:
- The state provides a “What’s My Kicker?” calculator that requires your full name, social security number, and filing status for both 2024 and 2025
When and How You’ll Receive It
Timing:
- You will see your kicker when you file your 2025 Oregon income tax return, typically between January and April 2026
- The surplus is not sent as a separate check but appears as a credit on your 2025 tax return
How it appears:
- The kicker credit will either increase your Oregon state income tax refund if you are due one, or it will reduce the amount of state taxes you owe if you have a balance due
- The amount depends on each individual’s Oregon income tax liability before credits
Potential Reductions to Your Kicker
State debt offsets:
- The state can garnish your kicker rebate to pay any debts you owe to the state such as child support, fines, school loans, or prior unpaid taxes
- In these cases, the kicker amount you receive may be less than what you calculated
Voluntary options:
- You can choose to donate your refund to an approved charity or the Oregon State School Fund
- If donating to the State School Fund, you must donate your entire kicker amount
Historical Context
Comparison to previous kickers:
- Two years ago, the state had a record $5.61 billion surplus
- The current $1.41 billion kicker is significantly smaller than the previous record
Next Steps
What to do now:
- Check if you filed your 2024 Oregon tax return. If not, file it immediately to qualify
- Use the state’s “What’s My Kicker?” calculator to estimate your credit amount
- Plan to file your 2025 Oregon tax return between January and April 2026 to receive your credit
- For more information, forms, and refund status tools, visit oregon.gov/dor or consult your CPA
Remember: Filing both your 2024 and 2025 returns is absolutely essential to receiving this credit. The kicker only comes around once every two years when there is a surplus, so make sure you do not miss out on this opportunity to get money back.
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