Oregon Kids Credit

The Oregon Kids Credit is a refundable state tax credit for families with young children, and the amount is bigger than many people expect. For 2025, if your modified adjusted gross income is $26,550 or less, the full credit is $1,050 per child for up to five dependent children ages 0 to 5 at the end of the tax year. That is not $1,000; it is $1,050.

The credit phases out above that income and reaches $0 at a modified AGI of $31,550, so for most people the 2025 income limit is $31,550. Between $26,550 and $31,550 you get a reduced amount rather than nothing, so it is still worth filing.

Because it is refundable, the part of the credit above what you owe comes back to you. Even people with no taxable income or no tax owed can claim it by filing an Oregon return, which is exactly the point for a low-income family.

There is a wrinkle in the income math. You may need to add income back to your modified AGI if you claimed certain federal losses, deducted tip income, overtime wages, or vehicle interest, or had excluded foreign earned income. A worksheet in the Oregon return instructions walks through it.

You generally must also qualify for the Personal Exemption credit for your dependent to claim the Kids Credit, so the child has to be a qualifying dependent on your return.

You claim the credit by filing an Oregon income tax return, and free filing help is listed on the Department of Revenue's Free Tax Help page. It is one of several refundable family credits, alongside the Earned Income Credit, so a family with young kids should check both.