17708: OR - Kicker Surplus Credit (Drake21)

Every two years, the Oregon Department of Administrative Services determines whether there is a surplus and the amount to be returned to taxpayers is figured as the Oregon surplus credit, also known as the “kicker.” If there’s a surplus, the kicker may be claimed on the return as a refundable tax credit or donated to the State School Fund. The kicker credit is available only on the return for during an odd-numbered year. If there’s no surplus, or if the tax year is even numbered, no kicker is available.

The Oregon Department of Administrative Services has determined that there was a surplus for the most recent two-year period. For tax year 2021, the kicker is 17.341 percent of the taxpayer's 2020 personal income tax liability. For more information, see the instructions for the 2021 Oregon return.

Drake Software implemented a combined kicker worksheet from the OR-40 and OR-40 NP instructions in Drake21. In Drake21, use the OR > screen SC - OR Surplus Credit Worksheet to calculate the kicker.

Note:

• For a return which was filed through Drake20, and updated into 2021, lines 1 and 2 are carried forward during the return update process.  
  
• Only use the automatic surplus credit calculation when the taxpayer, and spouse if applicable, are the same on the returns for both 2020 and 2021.  
  

Changed Filing Status 

If your filing status has changed since 2020, you will need to enter data in both Part A and Part B, for the Taxpayer and Spouse. For example, if the taxpayer was single in 2020, but is now married filing joint, you must enter data in parts A and B, like this:

This generates two worksheets;.one for each spouse. The Taxpayer worksheet includes Part C - Combined Kicker for the new couple.  

Spouse Worksheet:

Taxpayer Worksheet 

For more information, review the worksheets in view as well as the worksheet instructions for the applicable OR-40 or OR-40NP available on https://www.oregon.gov/DOR/forms/