Oregon and the Internal Revenue Service offer many tax credits for low- to moderate-income families. These credits are fully or partially refundable, so the portion of the credit that is more than what you owe can be refunded to you. Even people who don't owe any tax can claim these credits if they file a return. An important part of claiming any of the credits is the Personal Exemption Credit for dependents. Find more about the Personal Exemption credit for dependents click here.
Oregon Kids Credit
New for tax year 2023, the Oregon Kids Credit is a refundable credit for low-income people with young dependent children. For those with a modified adjusted gross income (AGI) of $25,000 or less, the full credit is $1,000 per child for up to five dependent children ages 0 to 5 at the end of the tax year. Above a modified AGI of $25,000 the credit is reduced and is completely phased out ($0) at a modified AGI of $30,000.
More information about how to claim the credit will be added to this page before the 2024 tax season.
The Oregon Kids Credit is refundable, so the portion of the credit that is more than what the you owe can be refunded to you. Even people who don't owe any tax can claim refundable credits. Free filing assistance resources can be found on our Free Tax Help page.
Federal Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a federal credit that helps low- to moderate-income workers get a tax benefit. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund. See the eligibility table below and more information on IRS website.
*If you have a dependent younger than three years old at the end of the year
Oregon Earned Income Credit
If you qualify for the federal earned income tax credit (EITC), you can also claim the Oregon earned income credit (EIC). If you have a dependent who is younger than 3 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 EIC by your Oregon percentage. This credit is claimed on the return form. See the table above.
If you have questions about EIC you can email eic.4me@dor.oregon.gov. Additional resources are available at MFS-CASH Oregon.
Oregon EIC for ITIN filers
Starting with tax year 2022, if you couldn't claim the federal EITC only because you, your spouse, or your dependent(s) don't have a Social Security number (SSN) that is valid for work, you can now claim the Oregon EIC using individual taxpayer identification numbers (ITINs). See Schedule OR-EIC-ITIN Instructions for more information about the Oregon EIC for ITIN filers. The schedule and instructions are available in English and Spanish.
If you have questions about EIC for ITIN you can email eic.4me@dor.oregon.gov. Additional resources are available at MFS-CASH Oregon.
Working Family Household and Dependent Care credit
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, looking for work, or attending school.
You must also have qualifying household services or dependent care expenses. Qualified expenses must be 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, look for work, or attend school. See more.
Oregon 529 College Savings Network account contributions
A refundable tax credit for the 2023 tax year of up to $170 ($340 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. For more information about this credit, see Publication OR-17.
Claim this credit on Schedule OR-ASC or Schedule OR-ASC-NP using code 896.
Oregon ABLE account contributions
A refundable tax credit of up to $170 ($340 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 that you may claim as a credit. (See the table above.) For more information about this credit, see Publication OR-17.
Personal Exemption credit for dependents
A personal exemption credit is available for taxpayers (including both taxpayers who file a joint return) and their qualifying child(ren) and qualifying relative(s). An additional exemption is available if you or your spouse have a severe disability or if you have a child with a qualifying disability. For 2023, the maximum credit is $236 for each qualifying personal exemption. For more information, see Publication OR-17.