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Oregon Kids Credit issued to some taxpayers in error: What to know

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Oregon Kids Credit issued to some taxpayers in error: What to know


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Some Oregonians who filed their taxes early may receive less than they thought as the Oregon Department of Revenue announced approximately 500 taxpayers will have their refund adjusted after receiving the state’s Kids Credit in error.

The agency provided incorrect instructions for tax forms and with tax preparation software partners at the start of the 2026 tax season regarding how to claim the Oregon Kids Credit.

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“As a result, a small number of taxpayers who are not eligible for the Oregon Kids Credit calculated and claimed the Oregon Kids Credit on their returns,” the Department of Revenue said in a release. “An additional small number of taxpayers who are eligible to claim the Oregon Kids Credit claimed too large of a credit.”

Here’s what to know about the error and how it’s being corrected.

How many 2025 tax returns were impacted by the error?

Since the 2026 tax season opened on Jan. 26, the agency said it has processed about 135,000 returns, and the new federal deductions impacted fewer than 500 of those returns, according to the agency.

While the department expects that number to grow as the correction is updated across all filing systems, the agency anticipates that the total number of affected returns will remain low.

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“Our IT team will work through the weekend to update our systems to make sure taxpayers don’t face delays because of this error,” DOR Chief Information Officer Jon Dolan said. “We expect Direct File Oregon to be accurately filing returns for Oregon Kids’ Credit claimants by early next week.”

The department recommends that taxpayers who plan to try to claim the Oregon Kids Credit wait to file until Direct File Oregon, or the tax filing software they use, has been fully updated.

What happens to Oregonians who may have received the tax credit in error?

The Department of Revenue is automatically adjusting any returns affected by the error.

Any Oregon taxpayer who may have received the Kids Credit or too large of a credit as a result of the error does not need to take any action. They will be notified of the adjustment by mail, as well as through their Revenue Online account.

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“We will make the correction to their return, but we also want to manage taxpayers’ expectations,” Department of Revenue Director David Gerstenfeld said. “Unfortunately, their refund may be less than they anticipated. We know that a difference of even $100 can be very impactful for low-income families with young children, and we sincerely apologize for the error.”

How can Oregonians correctly claim the Oregon Kids’ Credit?

Oregon taxpayers claiming the Oregon Kids Credit are now offered a new form of assistance by the Oregon Department of Revenue to ensure they claim the correct credit amount when they electronically file their tax year 2025 return.

What is the Oregon Kids’ Credit?

The Oregon Kids Credit is a refundable credit for low-income families with young dependent children.

The full credit offers $1,050 per child, up to five children, on a modified adjusted gross income of $26,550 or less. A partial credit is also available for families with a modified adjusted gross income of up to $31,550.

What was the error?

To qualify for the Kids Credit, Oregonians must meet the requirements for their modified adjusted gross income.

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The error stemmed from how new federal deductions created under House Resolution 1, known as the One Big Beautiful Bill, for overtime pay, tips, and new car loan interest are calculated when determining Oregon taxpayers’ modified adjusted gross income.

According to the agency, the federal legislation made major changes to tax law that were quickly incorporated into Department of Revenue forms, instructions and processes. Incorrect instructions were provided on forms for the federal deductions, creating an error in calculating the modified adjusted gross income.

Where can Oregonians go if they have questions about the Kids Credit?

For any questions regarding the Oregon Kids’ Credit, Oregonians can visit the department’s website at www.oregon.gov/dor/programs/individuals/Pages/okc-faq.aspx.

Taxpayers can also call 503-947-0350 or email questions.dor@dor.oregon.gov.

Ginnie Sandoval is the Oregon Connect reporter for the Statesman Journal. Sandoval can be reached at GSandoval@statesmanjournal.com or on X at @GinnieSandoval.

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Oregon spa advertised on escort website, offered commercial sex acts, police say

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Oregon spa advertised on escort website, offered commercial sex acts, police say


PORTLAND, Ore. (KOIN) — Two people were arrested Tuesday on prostitution charges after search warrants were served on both a spa and home in Newport, authorities said.

According to Newport police, the investigation into Amazing Lotus Spa began in March after they learned it was advertising on a prostitution/adult escort website, as well as “alluding to commercial sex acts being offered at the spa.”

During the investigation, officers surveilled the business, and “observed activity inconsistent with the normal business patterns of legitimate massage establishments,” police said.

This led to the obtaining and execution of a search warrant on both the spa and a home located in the 800 block of Northeast Avery Street.

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At the spa, investigators found evidence indicating they were operating without a license, police said.

At the 8th Street home, they found large quantities of cash, as well as “evidence related to services allegedly being offered at the spa beyond unlicensed massage activity,” officials said.

Both 63-year-old Jia Hui and 67-year-old Bing Li were arrested and lodged at the Lincoln County Jail on charges of prostitution and practicing of massage without a massage therapist license.

The investigation is ongoing and anyone with information related to this case is encouraged to contact Newport police.

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Oregon Gov. Kotek, state leaders preview 2026 wildfire season

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Oregon Gov. Kotek, state leaders preview 2026 wildfire season


As Oregon approaches the summer months, Governor Tina Kotek and other state agency leaders are preparing for wildfire season.

On Tuesday morning, Gov. Kotek joined the Oregon State Fire Marshal, the heads of departments like forestry and emergency management, and public utility spokespeople to discuss the 2026 wildfire season.

They will also be taking questions from reporters – you can watch the full press conference here:

The governor and departments that fight wildfires also gave a tour of the equipment they use in the field when battling blazes across the state.

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Doggie Dash 2026 fundraiser supports Oregon Humane’s work with shelter animals

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Doggie Dash 2026 fundraiser supports Oregon Humane’s work with shelter animals


PORTLAND Ore. (KPTV) – A major fundraiser to support local shelter animals is coming up this weekend. Oregon Humane’s Doggie Dash 2026 helps pet families across the state.

Despite the name, this year’s event is going to the cats.

“Doggie Dash is one our biggest fundraisers we do,” said Dr. Steve Kochis, chief medical officer at Oregon Humane. “Sometimes we do see some cats at the event that are on a harness in a carrier or in a backpack. While we do have Doggie Dash as the name, we are Oregon Humane and still raise money for all the pets we help.”

Access to veterinary care

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With Portland’s Doggie Dash right around the corner, Kochis wants people to be aware of some of the bigger issues Oregon Humane is trying to tackle.

“It’s been an ongoing struggle with access to services, access to veterinary care, and with that comes lack of access to spay and neuter services,” Kochis said. “And then it doesn’t take long for cats to reproduce and overpopulate.”

Kelly Bremken, a veterinary social worker at Oregon Humane, said a recent case in Marion County illustrates the problem.

“Recently in Marion County there was a family who had cats they loved very much, but without access to affordable spay and neuter in their area they became overrun with cats,” Bremken said.

Oregon Humane took in 35 cats from that home, including one named Snotty Pippins after the veterinary team had to clean out his sinuses.

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Connecting people and pets to resources

Bremken’s job as veterinary social worker is to find the intersection between the help people need and their pets on cases like this one.

“We really think improving the life of the person can improve the life of the pet,” Bremken said. “We want that for everybody.”

Events like Doggie Dash make sure Bremken can continue to connect community members to the resources they need for their pets.

“We want folks to know they can call on us, get assistance, and we are there for the long haul,” Bremken said.

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Oregon Humane’s Doggie Dash is one of the largest gatherings of pets and people on the West Coast. Registration is $25. Doggie Dash Portland takes place Saturday, May 9, at Tom McCall Waterfront Park. A Salem event is scheduled for Saturday, June 6.

Copyright 2026 KPTV-KPDX. All rights reserved.



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