▶️ How much will you get from Oregon’s record $5.6 billion ‘kicker’ next year?

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An increase in Oregon state revenues at the end of the 2021-23 biennium will result in a larger personal income “kicker” than previously estimated come tax season.

The new estimated total is $5.6 billion, breaking the previous record of $1.9 billion. It’s also nearly $2 billion more than the Oregon Office of Economic Analysis predicted in March.

The typical Oregonian is expected to receive a $980 credit when they file their state income taxes next year under Oregon’s unique “kicker” law, state economists said Wednesday. That’s the median amount, but the average will be $2,100, according to the state.

“It sounds great to me. If there’s any way I can make more money, let’s go for it. And if the state’s doing better, we’re all doing better,” Bendite Marty Nelson said.

Nelson is from California. He says the kicker could help him and his family recover from tragedy.

“We went through some hard times,” said Nelson. “We lived in a place called Paradise, California. A few years ago, our home burned down. We’re starting over here in Oregon and times a rough these days. Seems like the price of everything is going up and if the state or the government can figure out a way for me to bring more money home, I’m all there.”

“This one isn’t just bigger. It’s multiple or a few times bigger,” Democratic Rep. Nancy Nathanson, chair of the House Revenue Committee, said in a Wednesday hearing, according to Oregon Public Broadcasting.

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Whenever actual revenues from personal income taxes come in at least 2% higher than the forecast amount, taxpayers get the excess back in the form of a tax credit.

The kicker is paid after taxes are filed for odd-numbered years, but the state says the amount of the credit will be based on the tax on the return filed for the prior even-numbered year. So, the amount will be based on 2022 tax returns.

“The Department of Revenue will publish a percentage, so you’ll take whatever happened in 2022, multiply it by that percentage and then that will be your kicker amount,” economist Joshua Lehner said.

Taxpayers need to file the prior-year return before they file a current-year return to claim the kicker, according to the state website. That means to claim this record kicker, you need to make sure your 2022 return is filed before the 2023 return is filed.

Here is a breakdown from the state revenue forecast of how much people can expect. Keep in mind that the state based this on 2020 tax returns.

Adjusted Gross Income Kicker amount (rough estimate)
Less than $11,400 $60
$11,400 – $28,900

$440

$28,900 – $52,400 $1,000
$52,400 – $96,200

$1,900

 

$96,200 – $201,300 $3,800
$201,300 – $466,700 $9,200
More than $466,700 $44,600

You can see the full economic forecast at this link.

The Associated Press contributed to this report.

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