Who will get it and how?

Oregon’s new credit could provide up to $5,000 to low-income families in the state with children. This new child tax credit from Oregon provides eligible families with up to $1,000 per child for up to five children. To qualify for the new child tax credit in Oregon, families must file a state income tax return.

Oregon’s New Child Tax Credit: Who Can Get It?

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

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

Children 5 years of age and younger are eligible for credit. Additionally, the eligible child must live in the same household as the taxpayer for more than half the year.

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

Other Credits Available in Oregon

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

All three credits (Oregon Child Credit, Federal and Oregon Earned Income Tax Credits) are fully refundable. If the tax credit amount is greater than the tax amount, you can receive a refund for the remaining amount. Even people who do not normally file tax returns can apply for tax credits and receive a refund.

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

Families eligible for the Oregon Kids Credit may also receive the refundable Working Family Household and Dependent Care Credit (WFHDC). WFHDC allows low- and moderate-income families to provide dependent care while they work, seek employment, or attend school.

For more information about the Oregon Kids Credit, federal EITC, Oregon EIC, and other similar credits, visit our Tax Benefits for Families page. Alternatively, taxpayers can call 2-1-1 or 503-378-4988 or visit the Oregon Department of Revenue website for more information about the credit.