In October, the Oregon Office of Economic Analysis (OEA) certified that the surplus refund (kicker) rate was 16 percent. However, the OEA recently updated the surplus refund (kicker) rate to 17.171 percent.
The kicker is a refundable tax credit claimed on your Oregon personal income tax, composite tax, or fiduciary income tax return. To calculate the amount of the credit, multiply your 2018 tax liability before any credits (Ln 22, Form OR-40) by 17.171 percent. If there was a credit for taxes paid to another state, this credit will need to be subtracted from your tax liability before calculating the kicker credit. In case you don’t have access to your 2018 tax return, the Oregon Department of Revenue (ODR) will also have a “What’s my kicker” calculator available online in January for help calculating the kicker credit. Please note, fiduciary and composite return filers will need to look at the form instructions for how to calculate the kicker.
To receive the kicker, taxpayers must file a 2019 tax return. Since the state will not be issuing physical “kicker” checks in the mail, this means there may be some cases when a taxpayer may have to file a 2019 tax return even though they would not otherwise have been required to do so.
More information on calculating the surplus credit will soon be available in the forms instructions for 2019 personal, composite, or fiduciary returns. These should be available in January on the ODR website.