As the 2024 filing season is quickly approaching, we would like to remind you of Oregon's important tax changes.
What's new for credits?
- Oregon Kids Credit. A new refundable tax credit is available to eligible taxpayers with a qualifying child age 5 or younger. For 2024, the income limit for the full credit is $25,750. The maximum credit amount for 2024 is $1,000 per qualifying dependent child, and phases down to zero for income at or above $30,750.
- Higher education savings and ABLE account credit. The 2024 limits for the credits for contributions made to a higher education savings account (Oregon College Savings Plan or MFS 529 Savings Plan) or an ABLE account are $360 if you're married and filing a joint return or $180 for all other filing status'.
- Agricultural Employer Overtime Tax Credit. A refundable credit is available for employers who pay overtime to their agricultural workers. Employers must apply for the credit in January for overtime wages paid in the prior year, and they must receive notification of the credit amount from the Department of Revenue before the credit can be claimed.
What's new for adjustments/deductions?
- Wildfire settlement or judgment subtractions. You may be able to subtract income from a settlement or judgment related to a wildfire that hasn't been deducted elsewhere on your federal or Oregon return. Legal expenses related to the settlement or judgment may also be subtracted.
- First-time home buyer savings account (FTHBSA) subtraction. The limits for this subtraction are now adjusted for inflation. The 2024 maximum limits for the FTHBSA subtraction are $11,865 for joint account holders who file a joint return and $5,930 for all other account holders.
- Federal tax liability subtraction. The 2024 federal tax subtraction limit is $8,250 ($4,125 for married filing separately). It may be limited further based on your adjusted gross income (AGI).
Additional Information
- Federal return. When you file your Oregon return, you must include a copy of your federal Form 1040, 1040-SR, or 1040-NR with Schedules 1 through 3 (if applicable), or Form 1040-X if you're filing an amended return. Items on your Oregon return may be adjusted or denied if your federal return isn't included.
- Oregon Instruction