The Oregon Department of Revenue (ODR) confirmed a surplus of $1.9 billion from 2020 taxes in early October. Despite the pandemic, the kicker signals economic growth, as it means the state exceeded revenue projections by at least 2%.
This year, the kicker will arrive as a refundable tax credit on taxpayers’ 2021 taxes.
How do I calculate my kicker amount?
The surplus percentage, determined by the Oregon Office of Economic Analysis (OEA), is 17.341%. So, to calculate how much you’ll receive from the tax kicker, multiple your 2020 tax liability by 0.17341. The ODR also provides a tool that automatically calculates the credit for you.
How will the Oregon tax kicker impact me?
Our advisors are here to help guide you through how this tax refund may impact you. Here are a few possible outcomes. This Oregon tax kicker may:
- Reduce or eliminate your Q4 tax estimate requirement for Oregon
- Allow you to reduce your current withholdings on your paycheck
- Provide an opportunity to set aside funds for a financial goal
Understanding your Tax Liability with Aldrich
Constantly changing rules require a team that knows you, your business, and the tax implications. Our professionals meet your needs while helping you manage tax risk, control costs, and reap maximum benefit. Please contact your Aldrich Advisor to learn more about the tax kicker and how it might affect you.