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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 

The Oregon Kids Credit is a refundable credit for people with young dependent children. For 2024, if your adjusted gross income (AGI) after Oregon additions and subtractions (your modified AGI) is $25,750 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 $25,750 the credit is reduced and is $0 at a modified AGI or $30,750.

The Oregon Kids Credit is refundable, so the portion of the credit that is more than what you owe can be refunded to you. Even people who don't have taxable income or owe any tax may be able to claim certain refundable credits. Free filing assistance resources can be found on our Free Tax Help page.

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 

If you can'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, may claim the Oregon EIC using an individual taxpayer identification number (ITIN) or an SSN that isn't valid for work. 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 higher education savings plan account contributions

A refundable tax credit for the 2024 tax year of up to $180 ($360 if married filing jointly) is available if you make contributions to an Oregon higher education savings plan 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 table). For more information about this credit, visit the Oregon College Savings website or 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 for the 2024 tax year of up to $180 ($360 if married filing jointly) is available if you make contributions to an Oregon Achieving a Better Life Experience (ABLE) account for the benefit of a person with a disability. 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, visit the Oregon ABLE Savings website or see Publication OR-17.

Personal exemption credit for dependents

A personal exemption credit is available for you, your spouse if you're filing a joint return and your qualifying dependents other than anyone who can be claimed as a dependent on someone else's return. An additional exemption credit is available if you or your spouse have a severe disability or if you have a child with a disability that qualifies them for special educations services, if your AGI isn't more than $100,000. For 2024, the credit is $249 for each qualifying personal exemption. This credit reduces tax but isn't refundable. For more information, see Publication OR-17. 

Frequently asked questions

Oregon Kids Credit 

For most individuals who qualify for the credit, the income limit for 2024 is $30,750. If you claimed losses on your federal return, you may need to add some of them back. A worksheet in the instructions for your Oregon return will help you calculate your income and credit amount. ​

​Yes.

For 2024, the full credit is $1,000 per dependent child age 5 or younger, for up to five dependents. The credit is less if your income is above $25,750, and the credit is zero if your income is $30,750 or more. The maximum total credit is $5,000. A worksheet in the instructions for your Oregon return will help you 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 residents are eligible for the Oregon Kids Credit, but your qualifying income is figured differently from a full-year resident’s and the credit amount must be prorated using your Oregon percentage. The instructions for your Oregon part-year return contain a worksheet to help you calculate your income and credit.​​

Yes. Nonresidents are eligible for the Oregon Kids Credit, but your qualifying income is figured differently from a resident’s and the credit amount must be prorated using your Oregon percentage. The instructions for your Oregon nonresident return contain a worksheet to help you calculate your income and 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, your Oregon nonresident return, or by using the Military pay subtraction (code 319) on your Oregon resident return, you may still qualify for the Oregon Kids Credit. However, you must file the correct Oregon return, depending on your situation. See our Military personnel webpage or Publication OR-17​ for military filing information.​

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.