Is there an Oregon income tax credit?
Yep! All Oregon taxpayers are eligible to receive a state income tax credit up to $300 for joint filers and up to $150 for single filers on contributions made to their Oregon College Savings Plan account. The tax credit goes into effect on January 1, 2020, replacing the state income tax deduction, and provides the same maximum credit to all Oregonians who are saving for college, community college, trade school, or any other post-secondary education through the Oregon College Savings Plan.
|Adjusted Gross Income (AGI) of the contributor||Percentage of Contributions eligible for tax credit||Contribution needed to maximize $150 tax credit for single filer||Contribution needed to maximize $300 tax credit for joint filer|
|Less than $30K||100%||$150 contribution||$300 contribution|
|$30,001-$70K||50%||$300 contribution||$600 contribution|
|$70,001-$100K||25%||$600 contribution||$1,200 contribution|
|$100,001-$250K||10%||$1,500 contribution||$3,000 contribution|
|More than $250K||5%||$3,000 contribution||$6,000 contribution|
Note: If you currently take advantage of the Oregon College Savings Plan's carry forward, or plan to, this option remains available to savers through December 31, 2019. You are able to carry forward your unused subtraction over the following four years. The new tax credit would be in addition to any carried forward deductions.
Worth noting, recapture provisions apply. This means that if you withdrew funds for non-qualified expenses from your Oregon College Savings Plan account, or used funds for expenses in connection with enrollment or attendance at an elementary or secondary school, and you claimed a tax benefit for that year’s contribution, the state of Oregon will recapture any Oregon State income tax benefits that you had accrued on the principal portion of that withdrawal. Read through our Plan Disclosure Booklet (PDF) for more info.