Oregon provides several tax credits for families that can reduce the taxes you owe and even increase your refund.
Personal Exemption Credit
Oregon's personal exemption credit is available to you if:
- You can't be claimed as a dependent on someone else's return, and
- Your federal adjusted gross income isn't more than $100,000 if your filing status is single or married filing separately or isn't more than $200,000 for all other filing statuses.
For 2022, the maximum credit is $219 for each qualifying personal exemption. You can claim a credit for yourself, your spouse, and your qualifying child or qualifying relative. An additional exemption credit is available if you or your spouse has a severe disability or if you have a child with a qualifying disability. For more information, see Publication OR-17.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a federal credit that helps low- to moderate-income workers and families get a tax benefit. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund.
*If you have a dependent younger than three years old at the end of the year
If you qualify for the federal Earned Income Tax Credit (EITC), you can also claim the Oregon Earned Income Credit (EIC). If you don't qualify for the federal EITC because you dont have a Social Security Number (SSN), you may still qualify for the Oregon credit. For tax year 2022, if you have a dependent who is younger than three years old at the end of the tax year, your Oregon EIC is 12 percent of your federal EITC; otherwise, your EIC is 9 percent of your federal EITC. If you're filing a part-year resident or nonresident return, multiply your EITC by your Oregon percentage. This credit is claimed on Form OR-40, Form OR-40-N, and Form OR-40-P
Working Family Household and Dependent Care Credit information
The Working Family Household and Dependent Care Credit (WFHDC) is a tax credit that helps low- to moderate-income families pay for the care of their dependents while they're working or looking for work.
This credit is refundable, meaning the portion of the credit that is larger than your tax liability can be refunded to you.
Who qualifies for this credit?
To qualify, your adjusted gross income must be less than the limit set for your household size.
You must also have qualifying household services or dependent care expenses. Qualified expenses are paid by you (or your spouse, if filing jointly) for household services or care for qualifying individuals to allow you (and your spouse, if filing jointly) to work or look for work. Expenses may be allowed if you (or your spouse, if filing jointly) qualify as a disabled individual or a student. See the instructions for Schedule OR-WFHDC for more information.
To qualify, expenses must be paid to a provider who isn't your spouse, the parent of your qualifying individual, or a person you can claim as a dependent.
You may pay qualified expenses with pretax dollars from an employee benefit plan.
Proof of qualifying expenses
You must be able to prove that you paid qualified expenses in order to claim this credit. Proof of both the payment and the receipt are required for each expense paid.
Acceptable proof of payment includes, but isn’t limited to:
Acceptable receipts must be received at the time of payment, must match the proof of payment, and must include the following:
- Cancelled check (front and back)
- Bank statement showing the cash withdrawal, along with receipts or detailed year end statement
- Electronic history report or statement showing money was sent by you, to whom it was sent, and indicate what the payment was for
- Qualified individual’s full name
- Dates of care
- Date and amount paid
- Name of the person or agency paying
- Provider’s name, address, and phone number
- Provider’s SSN, individual taxpayer identification number (ITIN), or federal employer identification number (FEIN)
- Method of payment (check, money order, cash, etc.)
We may ask your provider to fill out Form OR-PS to verify the amount you paid. Ask for a signed receipt from your provider each time you pay for care.
Who is a "qualifying individual"?
- A child under age 13 who you can claim as a dependent.
- Your disabled spouse who wasn't able to care for him or herself and lived with you for more than half the year.
- Any disabled person who wasn't able to care for him or herself who you can claim as a dependent or could claim as a dependent except they had a gross income of $4,400 or more; they filed a joint return; or you (or your spouse if filing jointly) could be claimed as a dependent on another taxpayer's return.
What are "household services" and "care of the qualifying individual"?
Household services are the services needed to care for the qualifying individual and to run the home. Costs for the care of the qualifying individual include the services for their well-being and protection. You can include the costs for care provided outside your home for your dependent under age 13 or any other qualifying individual who regularly spends at least eight hours a day in your home.
Qualifying household and dependent care expenses don't include:
- Public or private school (K-12).
- Summer school or tutoring.
- Overnight camps.
- Child support payments.
- Food, lodging, gas, or supplies.
- Late payment and most fees (see federal Publication 503 for more information).
For expenses for after-school activities and boarding school, only the portion that is for dependent care is eligible for this credit.
Qualifying expenses also don't include items paid by others on your behalf, such as expenses paid or reimbursed by a state social service agency, payments made by another family member, or payments made by the child's other parent.
How to claim this credit
Complete a Schedule OR-WFHDC. You will be asked to calculate the percentage of qualifying expenses you can claim. You must use the WFHDC online calculator or Publication WFHDC-TB to find your percentage unless you use a tax preparation software that calculates it for you.
Include your schedule with your personal income tax return. You will also need to claim the credit on your Schedule OR-ASC or Schedule OR-ASC-NP using code 895.
Oregon 529 College Savings Network account contributions
A refundable tax credit of up to $150 ($300 if married filing jointly) is available if you make contributions to an Oregon 529 College Savings Network account. To qualify for the credit, you must make contributions during the tax year, up until the date the return is filed or the due date (not including extension), whichever is earlier. Your AGI determines the percentage of your contribution made during the year you may claim as a credit.
You can claim this credit on your Schedule OR-ASC or Schedule OR-ASC-NP using code 896.
Oregon ABLE account contributions
A refundable tax credit of up to $150 ($300 if married filing jointly) is available if you make contributions to an Oregon Achieving a Better Life Experience (ABLE) account. To qualify for the credit, you must make contributions during the tax year, up until the date the return is filed or the due date (not including extension), whichever is earlier. Your AGI determines the percentage of your contribution made during the year you may claim as a credit.
You can claim this credit on your Schedule OR-ASC or Schedule OR-ASC-NP using code 897.