Oregon, IRS Begin Processing E-filed Returns; First State Refunds Expected February 17 - 01/26/26

Salem, OR—As Oregon and the IRS begin processing electronically-filed tax year 2025 returns today, the Department of Revenue expects the first Oregon taxpayers to receive their refunds—including their share of the state’s $1.41 billion kicker—as soon as February 17.

The department announced earlier this month that taxpayers who choose to file paper returns face a significantly longer wait. For paper filed returns, refunds will not start being issued until early April.

To help taxpayers avoid missteps that could further delay their refund, the department is opening 2026 tax season with a series of best practices suggestions.

File a return to claim 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.

Personal income taxpayers can determine the amount of their kicker using the “What’s My Kicker? calculator available on Revenue Online. To use the calculator, taxpayers will need to enter their name, Social Security Number, and filing status for 2024 and 2025.

File electronically, request direct deposit

On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund within two weeks. Those who file paper returns will experience a significantly longer wait in 2026 due to processing delays.

In the closing months of 2025, the IRS was late providing necessary tax forms and information to the Oregon Department of Revenue. As a result, the state’s processing of paper-filed Oregon personal income tax returns can’t begin until the end of March.

 Taxpayers should file just once unless they need to make a change to their return. They should choose to either file electronically or by paper. Doing both will delay processing of their return.

Gather all tax records before filing

In a kicker year, taxpayers can be in a hurry to file their return so they can get their refund as soon as possible. The department warns taxpayers not to get in too much of a hurry. They should make sure they have all necessary records—including Form W-2s from their employers and Form 1099s reporting other income—needed to file a complete and accurate tax return to avoid errors.

Getting in a hurry can cause taxpayers to file before they have all the information necessary to report all of their income. If income reported on a return doesn’t match the income reported by employers, the return, and any corresponding refund, will be delayed.

Revenue Online

Revenue Online is the state’s internet tax portal and is the best way to communicate with the department.

Taxpayers with a Revenue Online account should make sure their information is current before they file. They should check their username, password, and address; and verify any estimated tax payments they’ve made.

Those who don’t have a Revenue Online account can create one. They can simply go to Revenue Online, click “Sign Up” in the box at the top right and follow the prompts.

Download Form 1099-G

The department reminds taxpayers that it no longer mails Form 1099-G to taxpayers. The form reports the amount of refunds, credits, or other offsets of personal income, statewide transit individual tax, TriMet transit self-employment tax, or Lane transit self-employment tax paid during the previous year.

Only those who itemized deductions on their tax year 2024 federal income tax return will need a Form 1099-G to file their tax year 2025 return. Those taxpayers can view and download their Form 1099-G through Revenue Online.

Taxpayers who received unemployment insurance or Paid Leave Oregon benefits in 2025 will receive a separate 1099-G by January 31 from the Oregon Employment Department.

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2026 Tax Season Opens January 26; These Suggestions Can Help Taxpayers Get Their Refund And Kicker Sooner - 01/21/26

Salem, OR— 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.

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E-File Your Taxes To Get Your Refund And Kicker Faster - 01/08/26

Salem, OR— For taxpayers wanting to claim their share of Oregon’s $1.41 billion kicker  as soon as possible, filing electronically has never been more important.

On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund within two weeks. Those who file paper returns will experience a significantly longer wait in 2026 due to processing delays.

“The good news is that nobody has to wait,” said Megan Denison, administrator of the Personal Tax and Compliance Division at the Department of Revenue. “There’s a simple solution. File electronically.”

Oregon will begin processing electronically-filed returns Monday, January 26, the same day as the IRS.

The department will begin issuing refunds for e-filed returns February 15. For paper filed returns, refunds will not start being issued until early April.

In the closing months of 2025, the IRS was late providing necessary tax forms and information to the Oregon Department of Revenue. As a result, the state’s processing of paper-filed Oregon personal income tax returns can’t begin until the end of March.

Taxpayers may be eager to receive their tax refund this year due to the kicker. Oregon’s unique kicker is a refundable tax credit that either reduces the amount of tax owed or increases the amount of a taxpayer’s refund.

“To get your kicker, you must file a return. This year, if you file a paper return, you’re going to face a significant delay in receiving your refund,” Denison said. “Taxpayers who file electronically can avoid the extra wait.”

Chris Wytoski, manager of the Department of Revenue’s processing center, where paper forms and checks are processed, explained why the delay in receiving forms and information from the IRS will push back paper return processing.

“Using scanners, our front-end system captures the data reported on paper tax returns and checks. It then records the data in a digital format in our core accounting system,” Wytoski said. “We have to tell the system what data to capture and where to find it on each page of the return. Until the federal returns were finalized, we weren’t able to finalize Oregon’s returns and, ultimately, configure our system.”

The result is a delay for Oregon taxpayers filing paper returns this year.

Taxpayers who choose to file a paper return, should be sure to 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.

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.

Statewide, electronic filing rates have been steadily increasing in the last decade. In 2016, 86 percent of taxpayers filed electronically. That number edged above 90 percent in 2020 and last year, nearly 95 percent of Oregon personal income tax returns were filed electronically.

The state expects to receive more than 2.2 million Oregon personal income tax returns for tax year 2025, Denison said, and approximately 95 percent are again expected to be filed electronically. That still leaves a significant number of taxpayers who could wind up waiting longer than they’d like for their refund and kicker.

For tax year 2023, nearly 123,000 Oregon personal income tax returns were paper filed. More than 100,000 – or five out of every six paper filers – claimed a refund. Choosing to file electronically this year will help those taxpayers to get their refund sooner.

Denison said Oregon taxpayers have multiple free options to file their state returns electronically.

Now in its third year, Direct File Oregon is an interview-based program similar to commercial software and allows taxpayers the convenience and security of filing directly with the state of Oregon through Revenue Online for free. More than 14,000 taxpayers filed their Oregon personal income tax returns with Direct File Oregon in 2025.

Information about filing electronically, including a list of free tax preparation software products and other ways to get help filing your tax return for free, can be found on the Get Free Help with Your Taxes page of the department’s website.

A full list of approved commercial e-filing software is available on our Electronic filing webpage.

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Note to editors and news directors (not for publication):

Video b-roll of Department of Revenue scanners capturing

information from tax forms is available for download from Vimeo.