Fillable Worksheet Cr - Claim Of Right Income Repayments (Page 2 of 5) in pdf

Example 1: In 2012, Sophie was required to repay $10,000 of pension income originally received in 2010 and she claimed the

credit on her federal return. Her 2010 Oregon tax return was not amended or adjusted and it shows Oregon taxable income

of $40,000 and Oregon tax before credits of $3,391 (Form 40, line 32).

Example 1: Sophie’s worksheet

Enter your Oregon taxable income, as amended or adjusted, for the year the

income was taxed (Form 40, line 28 or Form 40S, line 12). Form 40N or 40P

filers, skip to line 4 ................................................................................................... 1.

$40,000

Enter the amount of income you repaid in the tax year for which you are

calculating the credit ............................................................................................... 2.

10,000

Line 1 minus line 2. This is your Oregon taxable income without the

repaid income ........................................................................................................... 3.

30,000

Form 40 or 40S filers—Enter the tax from the tax tables or rate charts for the

Oregon taxable income on line 3. Use the tables or charts from the year the

income was taxed. This is what your Oregon tax before credits would have

been without the income you repaid.

Form 40N or 40P filers—Enter your Oregon tax before credits from the return

you completed without the income that was repaid (Form 40N, line 53; or

Form 40P, line 52) ...................................................................................................... 4.

2,491

Enter your Oregon tax before credits from the return you filed, as amended

or adjusted (Form 40, line 32; Form 40S, line 13; Form 40N, line 53; or Form

40P, line 52) ................................................................................................................ 5.

3,391

Line 5 minus line 4. This is your Oregon claim of right credit. Include this

amount on the estimated payment line the year you made the repayment and

check the box (Form 40, line 43; Form 40N or 40P, line 60) ................................ 6.

$900

She completes the worksheet and determines that the tax on $30,000 (previously taxable income minus the amount she repaid)

would have been $2,491. This is a difference of $900 (line 6 of the credit worksheet). Sophie will include her $900 credit on

line 43 of her 2012 Form 40 (the year she repaid the income) and check the box labeled “claim of right.”

Example 2: During 2012 Chris was a full-year resident and had to repay $25,000 of compensation originally received in

2007. He claimed the credit on his federal return, so he can claim the credit on his Oregon return. During 2007, Chris was a

nonresident. However, $10,000 of the compensation he repaid was taxable to Oregon. He worked part of the time in Oregon

during that year and the rest in Washington. He will refigure his 2007 Oregon Form 40N minus the $25,000 in the federal

column and minus the $10,000 in the Oregon column for the income that he repaid. This may change his Oregon percentage

as well. Chris will compare the tax before credits on the two returns to calculate his credit.

He originally had wages of $225,000 in the federal column and $80,000 in the Oregon column. Chris will refigure his 2007

return with $200,000 in the federal column and $70,000 in the Oregon column. This changes his Oregon percentage some

and decreases his Oregon tax to $5,870. Chris’ original tax was $6,766. Therefore, his claim of right credit is $896.

Example 3: During 2012, Theresa was a full-year resident and had to repay $5,000 of pension income originally received in

2010. During 2010, she was a nonresident and had no income taxable to Oregon. Theresa cannot claim a credit on her Oregon

return for the pension income she repaid during 2012, because Oregon did not tax the income in 2010.

Do not attach this worksheet to your Oregon return. Keep it with your tax records.

150-101-168 (Rev. 12-13)

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Worksheet Cr - Claim Of Right Income Repayments Page 2

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