Oregon corrects tax credit error affecting early filers
SALEM, Ore. (KTVZ) -- The Oregon Department of Revenue says its free online filing tool, Direct File Oregon, has been updated to fix an error that affected calculations for the Oregon Kids Credit.
The issue was tied to new federal tax deductions for overtime pay, tips, and new car loan interest—changes that altered eligibility for some low-income families claiming the state credit. The department discovered the error this week while processing early tax returns.
Officials say fewer than 500 of roughly 135,000 returns filed so far were affected. Taxpayers who already submitted their returns don’t need to take any action—DOR is automatically adjusting them and will notify anyone impacted by mail and through their Revenue Online accounts.
Department Director David Gerstenfeld apologized for the mistake, noting it could lower refunds for some families. The Oregon Kids Credit provides up to $1,050 per eligible child for families with low or moderate incomes.
The department says all filing software providers have been notified to update their systems, and Direct File Oregon is now available with the correct calculations.
