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Implement Oregon EITC for ITIN filers (Schedule OR-EIC-ITIN) #7416

@PavelMakarchuk

Description

@PavelMakarchuk

Summary

Oregon allows taxpayers who file with an Individual Taxpayer Identification Number (ITIN) — or who have a qualifying child with an ITIN — to claim the Oregon Earned Income Credit even though they cannot claim the federal EITC. This was enacted by HB 2819 (2021), effective for the 2022 tax year onward.

Currently, or_eitc simply multiplies the federal EITC by 9% or 12%. Since ITIN filers receive $0 federal EITC, they get $0 Oregon EITC — the ITIN pathway is not modeled.

What needs to be implemented

ITIN filers claim Oregon's EIC using Schedule OR-EIC-ITIN, which calculates what the federal EITC would have been if the filer had a valid SSN, then applies Oregon's 9%/12% rate.

Key details:

  • Eligibility: Filer cannot claim federal EITC only because they, their spouse, or qualifying child(ren) lack a work-valid SSN (ORS 315.266)
  • Calculation: Compute a hypothetical federal EITC using ITIN filer's income and qualifying children, then apply Oregon's rate (9% with young child under 3, 12% otherwise... wait, 12% with young child, 9% otherwise)
  • Form: Schedule OR-EIC-ITIN
  • Variables involved: has_itin, taxpayer_has_itin already exist in the codebase

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