- Federal tax liability subtraction: The federal tax subtraction limit is $7,050 ($3,525 if married filing separately) for 2021. It may be limited further based on your adjusted gross income (AGI).
- Oregon Kicker Refund: The Oregon surplus credit, also known as the "kicker," will be claimed as a credit on the 2021 return. This credit is a percentage of your 2020 income tax liability. You must manually enter this amount on the Oregon State return.
- Subtraction for AmeriCorps educational awards: A new subtraction is available for AmeriCorps volunteers who receive educational awards after completing a term of national service.
- Changes to qualified withdrawals from Oregon 529 College Savings Network accounts: Qualified withdrawals now include expenses related to apprenticeship programs and certain student loan payments.
- Credit recaptures for Oregon 529 College Savings Network and ABLE account contributions: If you claimed a tax credit based on your contributions to an Oregon College or MFS 529 Savings Plan account or an ABLE account and later made a nonqualifed withdrawal of those contributions, your credit(s) may have to be recaptured as an addition to your current year tax.
For more information, please review the Oregon Instructions.