Oregon Kids Credit Offers Big Boost for Low-Income Families

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Oregon’s newest tax credit could provide as much as a $5,000 boost to the budgets of the state’s lowest income families.

The Oregon Kids Credit, created by the Legislature last year, is a refundable credit for low-income people with young dependent children. For those with a modified adjusted gross income (MAGI) of $25,000 or less, the full credit is $1,000 per child for up to five dependent children under the age of six at the end of the tax year with a maximum benefit of $5,000. A partial credit is available for individuals and families with a MAGI up to $30,000.

US IRS Internal Revenue Service income tax form 1040 with supporting documents. 3×2 aspect ratio

The Oregon Department of Revenue encourages anyone who knows a family or families that might benefit from the Oregon Kids Credit to share the information found on the agency’s website.

When combined with the federal Earned Income Tax Credit and the Oregon Earned Income Credit, it could help boost the tax refund for the lowest income families to more than $13,000.

The EITC is for people with an adjusted gross income of up to $63,398 in 2023. Families may be eligible for a maximum refundable credit of $7,430 on their federal tax return, and a maximum Oregon EIC of $891 on their state tax return.

All three credits are fully refundable, meaning the portion of the credit that is larger than what a taxpayer owes can be refunded. Taxpayers may even be able to claim the credits and receive a tax refund if they don’t normally file a tax return.

To claim the credits, taxpayers must file a return. To assist taxpayers, Oregon offers several free filing options, including free fillable forms and the new Direct File Oregon. Taxpayers who need help filing their taxes can also find free assistance options on the agency website.

Families who are eligible for the Oregon Kids Credit are also likely eligible for the partially refundable Working Family Household and Dependent Care Credit (WFHDC), which helps low- to moderate-income families pay for the care of their dependents while they’re working, looking for work, or attending school.

For more information about the federal EITC, the Oregon EIC, the Oregon Kids Credit and other similar credits, go to the Tax benefits for families page.

Taxpayers can dial 2-1-1 or visit the Oregon Department of Revenue website to find free tax preparation sites by using our interactive map. For more information on the EITC, visit https://www.eitc.irs.gov/. For questions about Oregon taxes, call the Department of Revenue at 503-378-4988.

About Author

Robin is a Public Information Officer for the Oregon Department of Revenue.

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