$5,000 New Child Tax Credit from Oregon: Who Will Get It and How?

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A new credit from Oregon could give up to $5,000 to the lowest-income families in the state with children. This new child tax credit from Oregon offers eligible families up to $1,000 per child for a maximum of five. Families need to file their state income tax return to get this new child tax credit from Oregon.

New child tax credit from Oregon: who will get it?

In 2023, lawmakers created the new child tax credit from Oregon, officially called the Oregon Kids Credit. The new child tax credit from Oregon received near unanimous support, including a 51-1 vote in the House and a 24-1 vote in the Senate.

To qualify for the full credit, a taxpayer must have a modified adjusted gross income (MAGI) of $25,000 or less. A partial credit is available to taxpayers with MAGI of up to $30,000. It is a refundable credit for low-income families with young children.

Children aged five and younger qualify for the credit. Also, a qualifying child must live in the same home as the taxpayer for more than half the year.

The Oregon Center for Public Policy estimates the new credit could benefit about 55,000 children across the state. If every child eligible for the credit is claimed, the Oregon Kids Credit could lift about 5,000 children out of poverty.

Other available credits from Oregon

The Oregon Kids Credit could give some families more than $13,000 when combined with the federal Earned Income Tax Credit and the Oregon Earned Income Credit. Eligible families can get up to $7,430 in federal EITC and up to $891 on their state tax return. The threshold income to qualify for the EITC is $63,398 in 2023.

All three credits – the Oregon Kids Credit, federal and Oregon Earned Income Tax Credit – are fully refundable. If the credit amount is larger than the tax amount, the remaining can be refunded. Even those who don’t normally file a tax return will be able to claim the credit and get a refund.

Taxpayers need to file a return to claim the three credits. The state offers several types of assistance to help taxpayers with their returns, including free fillable forms, the new Direct File Oregon service, and free assistance options on the Department of Revenue website. The last date to file your taxes and claim the credit is April 15.

Families who qualify for the Oregon Kids Credit may also be eligible for the refundable Working Family Household and Dependent Care Credit (WFHDC). The WFHDC allows dependent care to low- to moderate-income families while working, searching for a job, or attending school.

Visit the Tax benefits for families page to get more information on the Oregon Kids Credit, federal EITC, the Oregon EIC and other similar credits. Alternatively, taxpayers can dial 2-1-1 or 503-378-4988 or visit the Oregon Department of Revenue website for more information on the credits.