Skip to main content

Oregon State Flag An official website of the State of Oregon »

Tax benefits for families

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. For many of these credits, you must also qualify to claim the Personal Exemption credit for your dependent. Find more about the Personal Exemption credit for dependents here. For a list of other types of tax credits, visit our Oregon credits page.

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.

Click here to view frequently asked questions.

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. 

Frequently asked questions

Oregon Kids Credit 

​For most individuals who qualify for the credit, the income limit is $30,000. If you claimed losses on your federal return, you may need to add some of them back. A worksheet will be available in the 2023 Form OR-40 Instructions and Form OR-40-NP Instructions to calculate your income and credit amount.​

​Yes.

​The full credit is $1,000 per dependent child age 5 or younger. The credit is less if you have an income above $25,000, and the credit is zero if your income is $30,000 or more. The maximum total credit is $5,000. A worksheet will be available in the 2023 Form OR-40 Instructions and Form OR-40-NP Instructions to calculate your income and credit amount.​

​You must file an Oregon personal income tax return to claim the credit. To find help, visit our “Get free help filing your taxes" webpage.​

​Your dependents who are a qualifying child and age 5 and younger qualify for the credit. A qualifying child may be your child, or a descendant of your child, your sibling, stepsibling, or a descendant of your sibling or stepsibling. A qualifying child must also live at the same home as you for more than half the year.​

​If your dependent lived with you for more than half the year, you may still claim the released dependent for the Oregon Kids Credit.​

​No. All filing statuses eligible for the credit have the same income limit. Those filing married filing separately do not qualify for the Oregon Kids Credit.​

​No. Returns filed as married filing separately are not eligible for the Oregon Kids Credit.​

​Yes. Part-year and nonresidents are eligible for the Oregon Kids Credit. 2023 Form OR-40-NP Instructions will contain a worksheet to calculate your credit.​

​Yes. Refer to Form OR-40-NP Instructions for information on calculating your credit. ​

​No. However, in order to qualify, your dependent needs to have lived with you for more than half the year.​

​Yes. ITIN filers and individuals with qualifying dependents with ITINs may claim the Oregon Kids Credit.​

​Yes. When you claim the Oregon Kids Credit, you may still claim other credits you are eligible for.​

​Refunds of the Oregon Kids Credit are not subject to garnishment. If you receive a refund due to the Oregon Kids Credit, and it is garnished, contact the institution that garnished it to resolve the issue.

The Oregon Kids Credit is subject to being offset by the Oregon Department of Revenue. This means that your credit may be used to pay other taxes or debts that you owe, such as past due child support or student loans.​​

You may still claim the Oregon Kids Credit even if you haven't filed returns in prior years.

If you have questions regarding filing returns for previous years, please call us at (503) 378-4988.​​

If you have military pay that is not taxed, either on your federal return or using the Military pay subtraction (code 319) on your Oregon return, you can still qualify for the Oregon Kids Credit. However, you must file the correct Oregon return, depending on your situation. 

Oregon residents stationed in Oregon 

If you are an Oregon resident stationed in Oregon, file Form OR-40. 

Oregon residents stationed outside Oregon 

You're treated as a nonresident for Oregon tax purposes (a "special case resident") if you meet all the following requirements: 

  • You didn't have a permanent residence in Oregon for yourself or your family during any part of the tax year. 

  • Your permanent residence was outside of Oregon during the entire tax year. 

  • You spent fewer than 31 days in Oregon during the tax year. 

You're also treated as a nonresident for tax purposes if you're on active service, other than annual training duty or inactive-duty training, and you are a resident of another state according to the DFAS payroll records.  

If you file a return and either of the above are true, use Oregon Form OR-40-N. 

Nonresidents stationed in Oregon 

If you are stationed in Oregon from another state, you are still considered a nonresident for tax purposes. Use an Oregon Form OR-40-N if you are required to file an Oregon return. 

For more information on filing as military personnel, please refer to OR-17​ ​

Contact us

Phone: 503-378-4988 or 800-356-4222

TTY: We accept all relay calls.

Fax: 503-945-8738

Email: questions.dor@dor.oregon.gov

Resources

More information

Read Publication OR-17 for full requirements and instructions on how to claim any of these credits on your Oregon tax return.