Yes. Any Oregon income tax refund that you earn can be deposited into an existing Oregon College Savings Plan account when you file your tax return. Depositing all or a portion of your tax refund into an Oregon College Savings Plan account (up to four accounts) is a simple way to grow your education savings and can even help you earn your tax credit for next year. Deposits must be a minimum of $25.

It’s simple to make your deposit when filing your taxes using online tax software or via a paper form. When filing electronically, you will be prompted to include the total amount of “Oregon 529 college savings plan deposits” you would like to make, outlined in detail on the OR-529 worksheet. This is the same sheet that you will need to include when filing your tax return via paper form. Please refer to the OR-529 Instructions when looking for additional guidance on this process.

This coming tax season, Oregonians can expect to receive the state’s largest ever tax kicker, a rebate on Oregon income taxes. This surplus credit is a way for state government to return some of your taxes to you when revenues are more than predicted. The Oregon Department of Revenue’s online tool can help you calculate how much you could be getting on your 2023 tax return. Depositing those extra funds to save for education with an Oregon College Savings Plan account has never been easier.

Your refund can be used to make deposits into your own account or the account of someone important in your life. If you do not have an Oregon College Savings Plan account of your own, you can elect to create an account with Part 2 of the OR-529 worksheet, and initiate the account sign up process while you file your taxes. The Oregon College Savings Plan will contact you if additional information is needed to establish your account. Note: when filing your taxes, refunds can only be deposited into preexisting accounts.

Please understand, if your refund is used to pay a tax debt you owe, or the amount you elect to deposit exceeds your available refund, your deposit will be canceled. Any remaining refund will be refunded by check or via direct deposit.

Yes. The OR-529 tax form streamlines the process of opening an Oregon College Savings Plan account by connecting it to the tax filing process (see Part 2 of the form). Oregon taxpayers can now elect to open an Oregon College Savings Plan account or deposit personal income tax refunds into a preexisting Oregon College Savings Plan account (up to four accounts) while filing their state tax returns. Because creating a new Oregon College Savings Plan account is now connected to the tax filing process, only limited information is needed to initiate the account sign up process, including basic contact information for the taxpayer and the account beneficiary. The Oregon College Savings Plan will contact you if additional information is needed to establish your account after submitting the form.

The plan administrator must send the 1099-Q by January 31, so you should receive the form no later than early February following the close of the tax year. You will receive it via mail or electronic delivery based on communications preferences.

When you make contributions to an Oregon College Savings Plan account, your money has the chance to grow and earn interest, tax-free. And unlike many other investment options, when you withdraw your savings to use for qualified educational expenses, you can spend it tax-free too.

And, if you live in Oregon, any contribution you make to an account makes you eligible for the state’s income tax credit, worth $170 for single filers or $340 for joint filers. You do not need to be the owner of the account to contribute and claim the tax credit (that includes people who send funds through a gifting page).

Worth noting, recapture provisions apply. This means that if you withdrew funds for non-qualified expenses from your Oregon College Savings Plan account 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 accrued on the principal portion of that withdrawal. This is also the case when funds are withdrawn for the purpose of enrollment or attendance at an elementary or secondary school. Read through our Plan Disclosure Booklet (PDF) for more information.

Additionally, any funds that you plan to roll over from another 529 College Savings Plan are considered new contributions and may impact your taxes in a given tax year. It’s best to contact a tax advisor if you have questions about potential tax implications.

Yes. All Oregon residents are eligible to receive a refundable state income tax credit up to $340 for joint filers and up to $170 for single filers on contributions made to an Oregon College Savings Plan account. The tax credit provides the same maximum credit to all Oregonians who are saving for education after high school, including college, trade school, certificate programs, or any other higher education pathway through the Oregon College Savings Plan. The tax credit is periodically adjusted for inflation, so please check back on our website for the most up to date numbers.

Your annual income determines how much you need to contribute to earn the full tax credit. See how much you need to save to claim the credit.

Adjusted Gross Income (AGI) of the contributor	Percentage of Contributions eligible for tax credit	Contribution needed to maximize $170 tax credit for single filer	Contribution needed to maximize $340 tax credit for joint filer
Less than $30K	100%	$170 contribution	$340 contribution
$30,001-$70K	50%	$340 contribution	$680 contribution
$70,001-$100K	25%	$680 contribution	$1,360 contribution
$100,001-$250K	10%	$1,700 contribution	$3,400 contribution
More than $250K	5%	$3,400 contribution	$6,800 contribution

Worth noting, recapture provisions apply. This means that if you withdrew funds for non-qualified expenses from your Oregon College Savings Plan account 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 accrued on the principal portion of that withdrawal. This is also the case when funds are withdrawn for the purpose of enrollment or attendance at an elementary or secondary school. Read through our Plan Disclosure Booklet (PDF) for more information.

Yes. All Oregon residents are eligible to contribute to an Oregon College Savings Plan account and claim the state income tax credit. You do not need to be the owner of the account to contribute and claim the tax credit. Please note, each contribution may only be claimed once for tax purposes, either by the account owner or the person making the gift contribution.

Oregon residents that have contributed to an Oregon College Savings Plan account are eligible to claim the state income tax credit, even if their income is below the IRS minimum to file taxes. You can claim the credit while filing your taxes using online tax software, or via a paper form. There are many free options for filing your taxes, as well as other common tax credits that you may qualify for. Quality tax software will walk you through which credits you may qualify for and how to claim them. This will be a manual process for paper filing. Your annual income determines how much you need to contribute to an Oregon College Savings Plan account to earn the full tax credit. You can log in to your account portal for details on the total contributions you’ve made in a given tax year.

Your refundable Oregon state income tax credit is a dollar-for-dollar reduction of your tax bill and can also result in a refund if you owe fewer taxes than the credit amount. The overage will be returned to you in the form of a refund after you file your tax return. For example, if you owe $100 and qualify for a $300 refundable credit, you will get that extra $200 refunded to you by the Oregon Department of Revenue. Online filing, combined with direct deposit, is the fastest way to get your tax refund.

Additionally, you have the option to deposit any income tax refund you earn into an existing Oregon College Savings Plan account during the tax filing process; a simple way to grow your education savings and help earn your tax credit for next year.

Yes. Credits may earn you a tax refund! The Oregon state income tax credit is refundable, so even if your income is below the IRS minimum requirement to file taxes, you are still eligible to claim the state tax credit, but you must file your taxes to receive the refund. This also applies to other tax credits. If you qualify for other credits, but owe no tax, you are able to claim the excess tax credit as a refund when you file your return. Additionally, you have the option to deposit any income tax refund you earn into an existing Oregon College Savings Plan account during the tax filing process; a simple way to grow your education savings and help earn your tax credit for next year.

All Oregon residents preparing their own tax returns can file electronically at no cost using one of Oregon’s free file options. For the most up-to-date information on free software products and preparation assistance for filing your taxes, please visit the Oregon Department of Revenue website. Make sure you use the specific links on their website to avoid unnecessary fees or charges. Online filing, combined with direct deposit, is the fastest way to get your tax refund.

There may be a benefit to filing a tax return if your income is below the IRS minimum requirement to file. The Oregon state tax credit is refundable, so if you’ve contributed to an Oregon College Savings Plan account, but you owe no tax, you are able to earn a tax refund when you file your return. This also applies to other tax credits you may be qualified for. Additionally, you have the option to deposit any income tax refund you earn into an existing Oregon College Savings Plan account during the tax filing process; a simple way to grow your education savings and help earn your tax credit for next year.

Yes. Beyond the Oregon state income tax credit which you earn for contributing to an Oregon College Savings Plan account, the IRS offers several tax credits that can provide meaningful savings for families, reducing the amount filers owe on their taxes, and in some cases, leading to an increased tax refund.

Many qualified taxpayers overlook the Earned Income Tax Credit (EITC), a federal refundable credit for families with low or moderate incomes. If you qualify and make less than around $59,000 per year, you could get between $560 and $6,935.

The Saver’s Credit is a federal tax credit you can get for making contributions to your retirement plan or an ABLE account if you’re the designated beneficiary. The maximum credit is $1,000 ($2,000 if married filing jointly).

The Child Tax Credit is a federal tax credit that helps families with qualifying children get a tax break (up to $2,000 per kid, with $1,500 being potentially refundable). You may be able to claim the credit even if your income is below the IRS minimum required to file a tax return.

If you paid someone to care for your child or other qualifying person so you could work or look for work, you may be able to take the federal Child and Dependent Care Credit to help cover your expenses. The credit covers a maximum 35% of up to $3,000 of childcare/dependent costs, and up to $6,000 of expenses for two or more dependents.

If you adopt a child, the federal Adoption Credit covers up to $14,890 in adoption costs per child. People who adopt children with functional needs may get the full credit even if their actual expenses were less.

Education credits such as the federal American Opportunity Tax Credit (AOTC) and the federal Lifetime Learning Credit (LLC) help with the cost of higher education. The AOTC runs up to $2,500 per student for tuition and other associated education costs during the first four years of college. It is partially refundable, so if the credit lowers your tax bill to $0, you can get up to 40% (limited to $1,000) back as a refund. The LLC can get up to $2,000 for undergraduate, graduate or even nondegree courses at accredited institutions, as well as associated education costs.

Yes. Oregon residents that have contributed to both an Oregon College Savings Plan account and an Oregon ABLE Savings Plan account can claim the state tax credit for each plan independently. Therefore, a person is eligible for the state income tax credit for their Oregon College Savings Plan contributions and eligible for a separate tax credit for their contributions to an Oregon ABLE Savings Plan account. You can earn a maximum of $340 for joint filers and $170 for single filers for each instance that you claim the state tax credit. For example, you would earn $680 total ($340 for Oregon College Savings Plan contributions + $340 for Oregon ABLE Savings Plan contributions) if you file jointly and are eligible for the maximum tax credit. Your annual income determines how much you need to contribute to earn the full tax credit.

If you make a withdrawal from your account, you will receive IRS Form 1099-Q, which details all of the withdrawals you made throughout the tax year from your account. The recipient of the Form 1099-Q will be either the account owner or the beneficiary, depending upon the tax responsible party you elected during the redemption process. Withdrawals sent to an eligible educational institution will be reported under the beneficiary's Social Security number (or taxpayer identification number), per IRS guidelines.

To ensure that you properly handle matters on your federal income tax return, please consult a tax advisor and learn more about Form 1099-Q from the IRS directly.

No. You will only receive a 1099-Q tax form if you withdrew funds from or closed your Oregon College Savings Plan account for that tax year. If you did not make any withdrawals, you are still able to claim the state income tax credit. Please log in to your account portal for details on the total contributions made in a given tax year. And remember to use this information when completing your online or paper tax filing.

The money that you contribute to your Oregon College Savings Plan account is made with after-tax dollars, and any of your account earnings can be withdrawn and used to pay for qualified expenses tax-free.

Yes. If you make a withdrawal from your account for a non-qualified expense, the earnings tied to that distribution will be considered taxable income. There is a 10% federal tax penalty made on any earnings used to pay for non-qualified expenses. You will also have to pay back the state for any state income tax credits you have taken for contributions made to your account in relation to the amount withdrawn. Remember, your account grows and earns interest, tax-free, and when you withdraw those savings to use for qualified educational expenses, you can spend it tax-free too. These accounts are designed to be flexible, with most expenses related to higher education qualifying as eligible. You will only pay taxes if you use your account funds to pay for non-qualified expenses.

There are a few exceptions. You will not need to pay this additional 10% federal tax penalty if a withdrawal is made because the beneficiary has died or become disabled; has received a scholarship (the withdrawal amount cannot exceed the scholarship amount); or if the beneficiary has enrolled in an eligible military academy (the withdrawal amount cannot exceed the value of the education). If you’re still unsure about how things may affect your taxes, you may want to speak to a tax advisor for more information.

The good thing about making gift contributions to an Oregon College Savings Plan account is that they may reduce your own tax burden by helping to reduce the taxable value of your estate. Individuals making gift contributions may benefit from an annual federal gift tax exclusion of $17,000 per donor ($34,000 for married contributors), per beneficiary. And in the event that a contributor’s gifted amount to a beneficiary exceeds $17,000 in a single year, they may elect to treat up to $85,000 ($170,000 for married contributors) as having been made over a period of five years for federal gift tax exclusion. Please consult a tax advisor for more information.