A single parent of two young children earning $24,000 in Oregon could receive over $12,000 as a cash refund if they claim the federal Earned Income Tax Credit (EITC), the federal Child Tax Credit, the Oregon Earned Income Credit (EIC), and the Oregon Kids Credit.
Low-income Oregon families overwhelmingly use cash refunds to cover the basics—housing, utilities, food, etc.
Yet, more than 20 percent of Oregonians eligible to claim the EITC, don’t. Low participation rates in these programs leave millions of dollars on the table for low-income Oregonians.
An IRS study of 2020 federal tax returns found that Oregon ranked last in EITC participation with only slightly more than two out of three eligible taxpayers claiming the credit. Oregon’s standing has since improved, rising to 44th among the 50 states and the District of Columbia, and participation rates were up to more than 78 percent for tax year 2022.
The Oregon Department of Revenue is working with other state agencies and community partners to encourage taxpayers to learn more about this credit and find out if they’re eligible.
The department is working to increase uptake of the EITC in Oregon by both raising awareness of how refundable federal and state credits can put cash directly in the pockets of low-income Oregonians, and by offering free tax filing assistance. The state partners with community based organizations to offer free tax filing assistance at sites across the state. The hands-on guidance encourages Oregonians to check if they are eligible for these refundable tax credits.
The Earned Income Tax Credit is a fully refundable federal tax credit for people making up to $68,675 in 2025. A refundable credit not only reduces the amount of tax a taxpayer owes, any leftover credit results in a cash refund that can be deposited directly into their bank account. Families may be eligible for a maximum refundable credit of $8,046 on their federal tax return, and a maximum Oregon Earned Income Credit of $966 on their state tax return. Certain taxpayers without children may also be eligible for these credits.
Individuals may qualify for the Earned Income Tax Credit, the Oregon EIC, and other credits, even if they are not required to file a tax return. To receive the refundable credits, however, they must file a federal and state tax return.
Basic qualifications for EITC include:
- You, your spouse, or any qualifying child must have a Social Security number to claim the federal credit.
- Your earned income in 2025 must be below certain limits based on your number of qualifying dependents.
- You may be eligible even if you do not have a qualifying child.
- Taxpayers can use the IRS EITC Assistant to check their eligibility further. The assistant is available in English and Spanish.
State tax credits for families
In addition to federal refundable credits, Oregon has multiple state tax credits that low-income families can claim – the Oregon Earned Income Credit (EIC), and the Oregon Kids’ Credit. Both of these credits are also available to taxpayers who use an individual taxpayer identification number (ITIN) to file their taxes or have a qualifying child with an ITIN. Taxpayers with an ITIN, claim the Oregon EIC using schedule OR-EIC-ITIN. The EIC otherwise has the same basic qualifications as the federal EITC listed above.
The Oregon Kids Credit is a refundable credit for low-income people with young dependent children. For those with a modified adjusted gross income (MAGI) of $26,550 or less, the full credit is $1,050 per child for up to five dependent children under the age of six at the end of the tax year. A partial credit is available for individuals and families with an MAGI up to $31,550.
The department recommends that Oregonians wishing to claim the Oregon Kids Credit use Direct File Oregon, the interview-based tax preparation software that allows taxpayers to file directly with the state for free. There was an earlier error in the forms for claiming the Oregon Kids Credit which has been updated and fixed in Direct File Oregon.
Taxpayers who plan to claim the Oregon Kids Credit, and file their taxes using another tax filing software can check the Department’s webpage to see if the software has been updated with the correct forms and instructions. The department has been in communication with its tax preparation software partners to ensure the fix is quickly applied to their forms.
For more information about the federal EITC, the Oregon EIC, the Oregon Kids Credit and other similar credits, go to the Tax benefits for families page.
Taxpayers can visit the Oregon Department of Revenue website to find free tax preparation sites by using the interactive map. For more information on the EITC, visit https://www.eitc.irs.gov/. For questions about Oregon taxes, call the Department of Revenue at 503-378-4988, or email questions.dor@dor.oregon.gov.
