2026 tax season opens January 26; These suggestions can help taxpayers get their refund and kicker sooner

With the start of tax season less than one week away, the Oregon Department of Revenue is providing guidance to help taxpayers file their return and claim their share of Oregon's $1.41 billion kicker. Oregon will begin processing e-filed 2025 state income tax returns on January 26, 2026, the same day the IRS will begin processing federal returns.

You have to file a return to get your kicker

The kicker is a refundable credit that will either increase a taxpayer's Oregon state income tax refund or decrease the amount of state taxes they owe. It is not sent to taxpayers separately as a check.

Only taxpayers who filed a tax year 2024 return and also file a tax year 2025 return can receive a kicker. The credit is a percentage of Oregon personal income tax liability for the 2024 tax year.

Electronic filing is faster-especially in 2026

On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund within two weeks. E-filed returns will be processed in the order they are received, with the first refunds expected to be issued February 17. For paper filed returns, refunds will not start being issued until early April.

Due to the late receipt of tax forms and information from the IRS in late 2025, processing of paper-filed Oregon personal income tax returns is expected to be delayed until late March, a process that has historically begun in February.

The delay in paper return processing will mean that the department won't be able to tell taxpayers who file paper returns that their return has been received until paper return processing starts at the end of March and their specific return enters processing. That also means information on paper-filed returns won't be available in the "Where's My Refund?" tool until that time.

Free e-filing options open January 26
Oregon residents who normally mail their paper tax return to the department should consider using Direct File Oregon, a free filing option available through Revenue Online, or other online tax preparation software, to e-file and receive their refund-and their kicker-sooner.

In addition to Direct File Oregon, other free filing options are also available. Free guided tax preparation is available from several companies for taxpayers that meet income requirements. Using links from the department's website ensures that both taxpayers' federal and state return will be filed for free.

All electronic filing software options approved for filing Oregon personal income tax returns can be found on the Electronic filing page of the agency's website. Taxpayers seeking to hire a professional to prepare their taxes can find helpful tips in the department's "How to Choose a Tax Practitioner" video.

Free and low-cost tax help

Free tax preparation services are available for low- to moderate-income taxpayers through AARP Tax Aide, VITA, and CASH Oregon. United Way also offers free tax help through their MyFreeTaxes program. Visit the Department of Revenue website to take advantage of the software and free offers and get more information about free tax preparation services.

How will U.S. Postal Service changes affect filing?

Taxpayers who choose to file a paper return, should mail it early. Due to changes at the U.S. Postal Service, returns mailed in after April 9 may not receive a postmark on time. Taxpayers who still want to mail their paper returns can take them to a local USPS office and request a postmark no later than April 15, 2026.

Paper returns can also be physically deposited in drop boxes available on both the east and west sides of the Department of Revenue Building in Salem, or outside the DOR offices in Portland, Eugene, Medford, and Bend. A drop box at DOR's Gresham office is available during business hours.