Fillable Form Fia-40 - Oregon Farm Income Averaging

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12. Add lines 9, 10, and 11.

of $208 from 2010 Form FIA-40, line 12, on his 2011 Form

Enter the result here and on

FIA-40, line 18. Kevin enters his recomputed 2009 tax of

Form FIA-40, line 13 ............................. 12 __________

$1,169 from 2010 Form FIA-40, line 16, on his 2011 Form

FIA-40, line 19. He enters his recomputed 2010 tax of $188

from 2010 Form FIA-40, line 4, on his 2011 Form FIA-40, line

Example 1. Kevin Crooper did not income average for tax

20. He adds lines 18, 19, and 20 and enters $1,565 on line 21.

year 2008 or 2009 but he did income average for tax year

This is the recomputed tax he paid for the 2008, 2009, and

2010 and he wants to income average for tax year 2011. For

2010 tax years.

tax years 2008, 2009, and 2010 Kevin filed joint returns. His

filing status for tax year 2011 is also married filing jointly.

Kevin subtracts the recomputed tax of $1,565 on line 21 from

For tax year 2008, Kevin’s taxable income from Form 40, line

the recomputed tax of $3,481 on line 17 and enters the result

28 is $1,112. For tax year 2009, Kevin’s taxable income from

of $1,916 on line 22. He figures his tax on $27,900 using the

Form 40, line 28 is $14,250. For tax year 2010, Kevin’s taxable

tax tables and enters $2,082 on line 23. Because the FIA tax is

income from Form 40, line 28 is $12,777. For tax year 2011,

less than the tax tables, he will enter $1,916 on line 24. This

Kevin’s taxable income from Form 40, line 28 is $27,900 and

is Kevin’s 2011 tax liability from farm income averaging. He

his elected farm income is $24,000. For the tax years above,

enters this figure on Form 40, line 29, and checks box 29b.

he has no net operating losses, no net operating carryfor-

Example 2. John Farmington did not use farm income aver-

wards or carrybacks and no capital losses.

aging for 2008, 2009, or 2010. For tax year 2011, John has

Kevin income averaged for tax year 2010. Kevin had $12,777

elected farm income on Form FIA-40, line 2 of $18,000. His

of taxable income and elected to farm income average $9,000,

Oregon taxable income shown on his 2008 Form 40, line 28,

leaving Oregon taxable income on his 2010 form FIA-40, line

is $6,150.

3, of $3,777. For 2008, Kevin’s recomputed taxable income

John had a net operating loss (NOL) for tax year 2009 of

after adding one-third of elected farm income from his 2010

$22,950, which he elected to carryback five years. Of the

Form FIA-40, line 11 is $4,112. For 2009, Kevin’s recomputed

$22,950 loss, $9,000 was carried back to tax year 2008. To

taxable income after adding one-third of his elected farm

complete line 1 of the 2008 worksheet, John combines the

income from his 2010 Form FIA-40, line 15 is $17,250. For

$9,000 net operating loss deduction (NOLD) with his 2008

2010, Kevin’s recomputed tax after removing his elected

Oregon taxable income of $6,150 from Form 40, line 28. The

farm income is $188 from 2010 Form FIA-40, line 4.

result, a negative $2,850, is entered on the 2008 worksheet,

For tax year 2011, Kevin’s Oregon taxable income is $27,900.

line 1.

On line 2 Kevin enters his elected farm income of $24,000.

When John filed his 2008 tax return, he had a $3,000 net

He subtracts line 2 from line 1 and enters $3,900 on line 3.

capital loss deduction on federal Schedule D, line 21, a $7,000

This is his remaining Oregon taxable income. He calculates

loss on federal Schedule D, line 16, and a $4,000 capital loss

his 2011 Oregon tax using the tax tables under married filing

carryover to 2009. However, when John carried back the 2009

joint status and enters $198 on line 4.

NOL to 2008, he refigured his 2008 capital loss carryover to

For 2008, Kevin enters $4,112 from his 2010 Form FIA-40,

tax year 2009 as $7,000. To calculate line 2 of the 2008 work-

line 11, on his 2011 Form FIA-40, line 5. He divides his

sheet, John adds the $3,000 from federal Schedule D, line

elected farm income of $24,000 by 3 and enters $8,000 on his

21, and the $7,000 carryover. He subtracts from the result

2011 Form FIA-40, line 6. He adds lines 5 and 6 and enters

the $7,000 loss on his federal Schedule D, line 16, and enters

$12,112 on line 7. This is his recomputed 2008 Oregon tax-

$3,000 on the 2008 worksheet, line 2.

able income. He calculates his 2008 Oregon tax using the

John had $6,150 of Oregon taxable income in 2008 that

2008 tax tables under married filing joint status and enters

reduced the 2009 NOL carryback. The $3,000 net capital loss

$735 on line 8.

deduction also reduced the amount of the 2009 NOL carry-

For 2009, Kevin enters $17,250 from his 2010 Form FIA-40,

back. Since these two figures together total $9,150, there is

line 15, on his 2011 Form FIA-40, line 9. He enters $8,000 from

no NOLD left to carry over to tax year 2010. Therefore, John

his 2011 Form FIA-40, line 6, on his 2011 Form FIA-40, line 10.

enters -0- on line 3. John adds line 1, a negative $2,850, line 2,

He adds lines 9 and 10 and enters $25,250 on line 11. This is

a positive $3,000, and line 3. He enters the result, a positive

his recomputed 2009 Oregon taxable income. He calculates

$150, on line 4 of the worksheet and on 2011 Form FIA-40,

his 2009 Oregon tax using the 2009 tax tables under married

line 5. This figure represents John’s recomputed Oregon

filing joint status and enters $1,847 on line 12.

taxable income for tax year 2008.

For 2010, Kevin enters $3,777 from his 2010 Form FIA-40, line

For tax year 2009, John’s taxable income from Form 40, line

3, on his 2011 Form FIA-40, line 13. He enters $8,000 from his

28 is negative $30,250, which he enters on the 2009 work-

2011 Form FIA-40, line 6, on his 2011 Form FIA-40, line 14.

sheet, line 5.

He adds lines 13 and 14 and enters $11,777 on line 15. This is

John had a $3,000 net capital loss deduction on Schedule D,

his recomputed 2010 Oregon taxable income. He calculates

line 21 and a $7,000 loss on Schedule D, line 16, the carryover

his 2010 Oregon tax using the 2010 tax tables under married

from 2008 to 2009. John adds the $3,000 from Schedule D,

filing joint status and enters $701 on line 16.

line 21, and the $7,000 carryover. He subtracts from the result

On his 2011 Form FIA-40, he adds lines 4, 8, 12, and 16 and

the $7,000 loss on Schedule D, line 16, and enters $3,000 on

enters $3,481 on line 17. He enters his recomputed 2008 tax

150-101-160 (Rev. 12-11)

Form Fia-40 - Oregon Farm Income Averaging - 2011 Page 4

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