Oregon parents could see a meaningful boost to their 2026 tax refunds, thanks to the state’s new Kids Credit design for families with young children.
If you are raising little ones under age six and fall within the income limits, this credit could put hundreds or even thousands back in your pocket.
The program aims at easing the financial pressure on low-income households, especially those juggling childcare, rising costs, and day-to-day essentials.
Even families with no taxable income may benefit, because this credit is fully refundable and can be claimed simply by filing your state return.
Before the rush of tax season arrives, here is a clear look at who qualifies, how much you can receive, and the steps you should take next.
Oregon’s New Kids Credit Could Deliver $1,000 per Young Child Next Year
The Oregon Kids Credit 2026 offers families a rare financial boost at a time when childcare and basic living costs continue to rise. With up to $1,000 available per qualifying child and the possibility of combining it with other credits, eligible households could see a much larger refund this year.
Across Oregon, the program is generating buzz among families, tax professionals, and community organizations. More residents now realize that even those who owe no tax can still benefit, prompting increased interest ahead of the 2026 filing season.
Oregon Kids Credit Key Details For 2026
| Update On | Oregon Kids Credit |
| Credit Per Child | Up to $1,000 |
| Eligible Ages | Children under 6 |
| Refundable | Yes |
| Income for Full Credit | Roughly mid-$25,000 range and below |
| Phase-Out Ends | Around $30,000–$31,000 |
| Maximum Children Counted | Up to 5 |
| Filing Deadline | 15, April 2026 |
| How to Claim | File Oregon tax return with dependent details |
| Official Website | https://www.oregon.gov/dor/ |
What’s New For 2026?
Oregon’s Kids Credit is a fairly new addition to the state’s tax system, created to provide extra support for families raising very young children. It officially applies to 2025 income tax returns, which residents will file in 2026.
Unlike many state credits that are non-refundable, this one sends money back to families even when they owe no tax. That makes it especially valuable for households with limited earnings.
The credit works alongside other benefits like the Earned Income Tax Credit and Oregon’s own EIC, meaning families may see a larger total refund than in previous years.
Who Is Eligible?
To qualify for the Oregon Kids Credit 2026, you must meet these basic requirements –
- You live in Oregon the entire tax year.
- You have at least one dependent child who is under age 6 by year-end.
- You file an Oregon return using a valid SSN or ITIN.
- Your income falls within the program’s limits.
- The child must live with you, and you must be responsible for their daily care.
Benefits & Credit Amounts
Oregon families stand to receive a meaningful refund boost –
- $1,000 per qualifying child under age 6.
- Maximum credit allowed; up to five children ($5,000 total).
- Lower-income households receive the full amount; the credit gradually decreases for higher incomes.
- Completely refundable, so it’s paid out even if your tax owed is zero.
This credit can significantly reduce financial strain, especially when paired with other state and federal tax supports.
Income Limits
Your credit amount depends on your modified adjusted gross income (MAGI) –
- Full credit available to families with income in the mid-$25,000 range or below.
- Partial credit available until income approaches around $30,000-$31,000.
- Above the phase-out range, the credit ends altogether.
These limits may shift slightly each year based on state updates.
Deadlines
To receive the Oregon Kids Credit for tax year 2025; one must file your Oregon state tax return by 15, April 2026. Late filings can delay your refund and may impact your ability to receive certain benefits.
How to Apply (Simple Steps For Families)
Claiming the credit only requires filing your Oregon taxes. Here is the process –
- Collect Your Documents – income records, dependent details, SSNs/ITINs, and residency information.
- Prepare your Oregon return (Form OR-40 or the correct version for your situation).
- List each child under age six as a dependent on your return.
- File electronically for the fastest refund or mail in a paper return if needed.
- Choose direct deposit to receive payments quickly.
- Check your refund status through the state’s online “Where’s My Refund?” tool.
Free tax help is available through community organizations, volunteer tax sites, and state resources.
Who Is Affected Most?
The credit primarily impacts –
- Low- and moderate-income Oregon families raising children under six.
- Parents who previously didn’t file taxes but now benefit from refundable credits.
- Households seeking relief from childcare costs and rising living expenses.
- Immigrant families filing with ITINs, who are also eligible if other rules are met.
How You Will Receive Credit?
You will get the money as part of your Oregon state tax refund:
- Direct Deposit – Fastest Method.
- Paper Check – May Take Longer.
- Processing time varies based on when and how you file.
Refunds that include refundable credits may take extra time for verification
Whom to Contact For Help?
For questions, filing assistance, or credit guidance –
- Oregon Department of Revenue
- Phone – 503-378-4988 or 800-356-4222
- Email – questions.dor@oregon.gov.
- Website – Oregon.gov/dor.
Local community tax centers and 2-1-1 information services can also provide free assistance.
Oregon’s New Refundable Credit Is Here
The Oregon Kids Credit could be one of the most valuable financial tools available to parents of young children. Filing on time and taking a few simple steps ensures families don’t miss out on money they are entitled to.
As the next tax season approaches, now is the perfect time to gather paperwork, seek support if needed, and prepare to claim this meaningful benefit.
