Finance Local News Oregon

$5000 To Families With Kids in Oregon; Check Eligibility

$5000 To Families With Kids in Oregon; Check Eligibility

Salem, OR: An upcoming tax credit offers the possibility of receiving up to $5,000 for Oregon’s most financially disadvantaged families who submit an Oregon state income tax return.

Last year, the Legislature introduced the Oregon Kids Credit, a refundable credit designed for low-income individuals with young dependent children. If your modified adjusted gross income (MAGI) is $25,000 or less, you could receive a full credit of $1,000 per child for up to five dependent children under the age of six at the end of the tax year—resulting in a maximum benefit of $5,000. Individuals and families with a MAGI up to $30,000 can qualify for a partial credit.

When paired with the federal Earned Income Tax Credit and the Oregon Earned Income Credit, it has the potential to increase the tax refund for low-income families to over $13,000.

Individuals with an adjusted gross income of up to $63,398 in 2023 are eligible for the EITC. Eligible families can receive a refundable credit of up to $7,430 on their federal tax return and up to $891 on their state tax return in Oregon.

All three credits can be fully refunded, allowing taxpayers to receive a refund for the excess amount of the credit. It’s possible for taxpayers to claim credits and receive a tax refund even if they don’t usually file a tax return.

Financial Aid Arriving in Oregon; Check Details of When and How

If families qualify for the Oregon Kids Credit, they may also qualify for the partially refundable Working Family Household and Dependent Care Credit (WFHDC), designed to assist low- to moderate-income families in covering dependent care expenses while they are working, job hunting, or pursuing education.

Encouraging Oregonians to save for college and job training, the Education Savings Credit for Oregon 529 Plan contributions offers a refundable credit of up to $170 for single filers ($340 for joint filers) when contributing to an Oregon College Savings Plan account before tax day.

For more information, taxpayers can call 2-1-1 or go to the Oregon Department of Revenue.

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