Drake Tax - Oregon Kids Credit

Article #: 18931

Last Updated: February 02, 2026

 

Tags: Drake Tax

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The Oregon Kids Credit is a refundable credit for eligible Oregon taxpayers with qualifying children. The credit is automatically calculated based on the other entries made in the return.

You can review the calculation on the Oregon Kids Credit Worksheet in View/Print mode (shows as OR KC Wks or OR KC WKNP).

The Oregon Kids Credit amount carries to:

  • Form OR-40, line 38.

    • Review the OR KC Wks.

  • Form OR-40-P, line 62.

    • Review the OR KC WKNP.

  • Form OR-40-N, line 63.

    • Review the OR KC WKNP.

An override for the Oregon Kids Credit is available on OR screen 1.

Note  Drake Tax 2025 Calculation Updated

The Oregon DOR recently provided updated guidance for the Oregon Kids Credit calculation on Form OR-40. Prior to February 2, 2026, some taxpayers may have claimed the credit when not eligible or claimed an amount larger than allowed. The updated guidelines were implemented in Drake Tax with Oregon Update 3.

The Oregon DOR will adjust any previously filed returns and notify impacted taxpayers directly. See the Oregon DOR FAQ page for details.

The calculations for the Kids Credit on Forms OR-40-P and OR-40-N were not impacted.