The Oregon surplus credit, known as the “kicker," is a way for state government to return some of your taxes to you when revenues are more than predicted. Every two years, the Oregon Department of Administrative Services (DAS) Office of Economic Analysis (OEA) determines whether there is a surplus and the amount to be returned to taxpayers as a kicker. If there's a surplus, the kicker may be claimed on the return as a refundable tax credit or donated to the State School Fund. The kicker credit is available only on the return for an odd-numbered year. If there's no surplus, or if the tax year is even-numbered, no kicker is available.
For the 2021-23 biennium, OEA has confirmed a
kicker of more than $5.61 billion. Taxpayers will claim the kicker as a
refundable credit on their 2023 tax return filed in 2024. To calculate the
amount of the credit, taxpayers multiply their 2022 tax liability before any
credits – line 22 on the 2022 Form OR-40 – by 44.28 percent. Taxpayers who
claimed a credit for tax paid to another state would need to subtract the
credit amount from their liability before calculating the credit.
Historic 2 percent Oregon surplus "kicker" statistics
The 1979 Oregon Legislature passed the "Two percent kicker" law, which requires the state to refund excess revenue to taxpayers when actual General Fund revenues exceed the forecast amount by more than two percent.
Personal Income Kicker History
Frequently asked questions
When the Oregon Office of Economic Analysis determines that a surplus exists and certifies the kicker percentage, the credit will be claimed on the personal income tax, composite, or fiduciary return filed for the current odd-numbered year. The amount of the credit will be based on the tax on the return filed for the prior even-numbered year. Taxpayers need to file the prior-year return before they file a current-year return to claim the kicker. For example, the kicker credit for the 2021-2023 biennium will be claimed on the 2023 return filed in 2024, with the amount based on taxpayers' 2022 tax. Taxpayers had to file a 2022 return before they filed a 2023 return to claim the kicker.
The kicker credit will be disallowed, however, after the prior year return is processed, the kicker will be adjusted on the current year return.
For
the personal income tax surplus credit (kicker), the money comes from all
General Fund revenue sources, except for corporate tax revenues. Personal
income tax is by far the largest contributor.
The Oregon Office of Economic Analysis determines
the kicker. The kicker a taxpayer may receive is based on the taxpayer’s prior
year income tax return and is claimed as a credit on the current tax return.
Yes. Taxpayers can donate their kicker with a checkbox on their tax return to the Oregon State School Fund for K-12 public education, but they must donate the entire amount. The donation is permanent and cannot be taken back.
Taxpayers can also donate to any or all of the 29 charities approved by the Charitable Checkoff Commission. Taxpayers use Form OR-DONATE (available on the DOR Forms Web page) to designate any amount or all of their refund to donate to charity.
If there is a corporate kicker, it all goes to K-12 public education funding.