Oregon has a unique tax policy known as the “kicker” credit. Unlike most states, Oregon taxpayers may receive money back when state revenue collections exceed forecasts by at least 2%. This refund is applied as a credit on your state tax return, often resulting in a larger refund or lower tax liability.
Oregon Kicker Calculator
What is the Oregon Kicker?
The Oregon Kicker is a unique taxpayer refund mechanism. If actual state revenues come in at least 2% higher than the forecast made two years earlier, the excess is returned to taxpayers in the form of a kicker credit.
Instead of receiving a separate check, the kicker appears as a credit applied on your Oregon tax return, reducing what you owe or increasing your refund.
How the Oregon Kicker Calculator Works
The calculator helps you estimate your refund by applying the kicker percentage to your Oregon state tax liability before credits.
Steps to use the calculator:
- Enter your tax liability (line number may vary by year, typically found before credits on Form OR-40).
- Enter the published kicker percentage for the tax year.
- The calculator will multiply your tax liability by this percentage to determine your kicker credit.
Formula Used in the Oregon Kicker Calculator
The formula is straightforward:
Kicker Refund = Tax Liability × Kicker Percentage
Where:
- Tax Liability = Your Oregon state income tax owed before credits
- Kicker Percentage = Percentage published by the Oregon Department of Revenue for that year
Oregon Kicker Example Calculations
Example 1: Moderate Income Taxpayer
- Tax Liability: $3,000
- Kicker Percentage: 44%
Kicker Refund = $3,000 × 0.44 = $1,320
Example 2: Higher Income Taxpayer
- Tax Liability: $12,500
- Kicker Percentage: 44%
Kicker Refund = $12,500 × 0.44 = $5,500
Example 3: Lower Income Taxpayer
- Tax Liability: $900
- Kicker Percentage: 44%
Kicker Refund = $900 × 0.44 = $396
Benefits of the Oregon Kicker Calculator
- Quickly estimate your refund amount
- Helps with tax planning before filing
- Allows taxpayers to see how much of the kicker they qualify for
- Prevents surprises when filing your state return
- Provides clarity about Oregon’s unique tax system
Important Information About the Oregon Kicker
- The kicker is not optional – it applies automatically if you qualify.
- Each tax year has a different percentage, announced by the Oregon Department of Revenue.
- Refunds are based on your tax liability, not your income.
- You must file an Oregon state tax return to claim it.
- If you don’t need the money, you can donate your kicker to Oregon schools.
20 Frequently Asked Questions (FAQs)
Q1: What is the Oregon kicker credit?
It’s a refund of excess state tax revenue applied as a credit on your Oregon tax return.
Q2: How do I know if I qualify for the kicker?
If you file an Oregon state return and have a tax liability, you may qualify.
Q3: How is the kicker percentage determined?
It’s set by the Oregon Department of Revenue based on state revenue forecasts and collections.
Q4: Where do I find my tax liability for the calculation?
On your Oregon Form OR-40, before applying credits.
Q5: Is the kicker the same every year?
No, the percentage changes depending on how much revenues exceeded forecasts.
Q6: Does the kicker depend on my income?
No, it depends on your tax liability, not your gross income.
Q7: When is the kicker applied?
It is applied when you file your state return, reducing taxes owed or increasing your refund.
Q8: Do I get a separate kicker check?
No, it appears as a credit on your Oregon tax return.
Q9: What happens if I don’t file a return?
You will not receive the kicker credit.
Q10: Can I calculate the kicker before filing?
Yes, using the Oregon Kicker Calculator.
Q11: Where can I find the official kicker percentage?
On the Oregon Department of Revenue website for the specific tax year.
Q12: Can I donate my kicker?
Yes, Oregon allows taxpayers to donate their kicker refund to state education funds.
Q13: Is the kicker taxable income?
No, it is a refund of taxes, not taxable income.
Q14: Do businesses get the kicker credit?
No, it applies to individual taxpayers, not corporations.
Q15: Is the kicker applied before or after credits?
It is based on your tax liability before credits.
Q16: Can I estimate my kicker with last year’s return?
Yes, but you’ll need the current year’s percentage for accuracy.
Q17: What happens if I owe taxes?
Your kicker credit will reduce your balance due.
Q18: What if I’m due a refund already?
The kicker increases your refund amount.
Q19: Can the kicker percentage be very high?
Yes, in some years it has been over 40%.
Q20: Do non-residents of Oregon get the kicker?
Only if they file an Oregon state return and owe Oregon state taxes.