Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 5, 2019 11:39:48 PM

I received an oregon state tax kicker refund of $26 within 2018. Would that need to be claimed on my 2018 fed taxes as income? I would think it would be. Thanks.

0 1 1730
1 Best answer
Level 6
Jun 5, 2019 11:39:50 PM

Instead of direct refund check payments to taxpayers (which were stopped in 2011), the Oregon state income tax "Kicker" is a tax credit, and it reduces your Oregon state income tax liability for the year being filed.  The Kicker occurs when the state experiences a budget surplus by the end of a year.  Instead of reportable income, the Kicker represents a reduction in the amount of state income tax you paid that is deductible on your federal income tax return (if you itemize), for the tax year being filed.  If you don't itemize on your federal income tax return and only take the federal standard deduction, then there should be no impact to your federal income tax return.

1 Replies
Level 6
Jun 5, 2019 11:39:50 PM

Instead of direct refund check payments to taxpayers (which were stopped in 2011), the Oregon state income tax "Kicker" is a tax credit, and it reduces your Oregon state income tax liability for the year being filed.  The Kicker occurs when the state experiences a budget surplus by the end of a year.  Instead of reportable income, the Kicker represents a reduction in the amount of state income tax you paid that is deductible on your federal income tax return (if you itemize), for the tax year being filed.  If you don't itemize on your federal income tax return and only take the federal standard deduction, then there should be no impact to your federal income tax return.