The Oregon kicker returns a qualifying state revenue surplus through the income-tax system. The credit on a 2025 Oregon return, generally filed in 2026, is based on 2024 Oregon tax liability. Calling it the “2026 kicker” without those dates can make readers use the wrong return.
Can I claim the kicker if I moved away or do not usually file?
Eligibility depends on the relevant Oregon returns and tax amounts. Your current address or whether you normally expect a refund does not answer the question by itself.
You must file a 2024 Oregon return, have qualifying 2024 Oregon tax liability, and file a 2025 Oregon return—even if you otherwise would not need to file. Moving away does not by itself prevent a claim. Use Oregon’s instructions if your filing status changed. Oregon eligibility and calculation guidance.
Which number do I use to calculate my kicker?
Start with the applicable tax liability—the tax amount calculated under the state’s rules—not wages, payroll deductions or the refund you received. The examples below show why choosing the right starting number matters.
For this cycle, multiply the applicable 2024 tax liability by 0.09863. The base is tax before most credits, withholding, and payments, with an adjustment for the credit for tax paid to another state on mutually taxed income.
| Applicable 2024 liability | Calculation | Credit before return rounding |
|---|---|---|
| $2,000 | $2,000 × 0.09863 | $197.26 |
| $5,000 | $5,000 × 0.09863 | $493.15 |
| $10,000 | $10,000 × 0.09863 | $986.30 |
This is not 9.863% of wages, withholding, or last year’s refund. Suppose your applicable liability was $5,000, withholding was $5,800, and your prior refund was $800. The kicker calculation still starts with $5,000: the illustrative credit is $493.15.
Will the kicker increase my refund or pay a bill I owe?
A credit reduces tax dollar for dollar. Its effect on the amount you receive depends on what the rest of your return shows.
The kicker is a credit claimed through the Oregon return. Holding everything else constant, if the return would otherwise show $300 due, a $493.15 credit would eliminate that amount and leave $193.15 to refund, before whole-dollar rounding or any amount applied to eligible outstanding debts (an offset). If the return already showed a $400 refund, the same credit would increase it to $893.15.
These examples explain the arithmetic; a filed return can include other credits, payments, corrections, or debts. The credit is not a separate guaranteed check equal to the amount in the table.
Which tax returns do I need, and what if my situation changed?
This kicker uses information from one year’s return to claim a credit on the next. Keep those dates beside your records so you do not use the wrong amount.
- 2024 supplies the tax-liability base.
- 2025 is the return that claims this credit.
- 2026 is the usual filing year for that return.
If the 2024 return is missing or amended, or the couple’s filing status changed, use the state’s worksheets or official calculator rather than copying a previous amount. Keep both returns together so the starting liability is easy to identify.
A kicker is not guaranteed every year. Do not apply this percentage to a future cycle. Before filing, use the current Oregon instructions for the specific return year.
Why is there a kicker in some years but not others?
The personal kicker is triggered when the relevant state revenues for a two-year budget period exceed the forecast by at least 2%. It is a return of the qualifying surplus, not a regular annual tax benefit. A different cycle can produce a different percentage or no kicker. Oregon legislative explanation of the trigger.
Could my kicker affect my federal taxes?
Possibly. Oregon does not tax the kicker, but the federal rules treat it as a state income-tax refund. Whether any amount is taxable federally depends on whether the earlier state-tax deduction actually reduced your federal tax.
Oregon may issue Form 1099-G reporting the refund, including amounts used to pay a debt or donated. Receiving that form does not by itself mean the whole amount is taxable. Use the federal refund worksheet or ask a tax preparer to check your earlier return. If an amount is included federally, Oregon allows it to be subtracted on the Oregon return. Oregon's kicker and federal reporting explanation.
How should I use this information?
These examples help you anticipate tax questions and prepare for a conversation with a qualified accountant. Each person’s or couple’s circumstances are different. Before acting, ask an accountant to apply the rules for your year and situation; timely advice may save thousands of dollars and make the decision easier.
For help preparing an eligible basic return, IRS-supported VITA and TCE programs may offer free assistance. TCE particularly serves people age 60 and older. Ask the local site about eligibility and which questions it can handle; complex property, business or multistate planning may need a specialist.