Fillable Worksheet Cr - Claim Of Right Income Repayments (Page 3 of 5) in pdf

Claim of Right deduction

[Addition code 103] [Modification code 608]

If you claimed a federal deduction for the repayment, you have a choice for Oregon. The deduction can flow through to

your Oregon return or you can claim the credit instead. If you let the federal deduction flow through, you don’t need to do

anything further on your Oregon return.

If it results in less tax, you can claim the Oregon credit instead. You must add back any federal deduction to claim the credit

on your Oregon return. To see which is best, first calculate your credit on the credit worksheet on page 1. Then, if required,

complete the addition worksheet. Finally, complete the deduction worksheet for your form type on page 4.

Addition—Your addition is generally equal to the deduction on your federal return. If you claimed the federal deduction

on Schedule A, your addition may be less. Use this worksheet to figure the Oregon addition required when taking the claim

of right deduction on federal Schedule A and the claim of right credit on your Oregon return.

Addition worksheet for deduction on Schedule A

1. Form 40 filers—Enter your net Oregon itemized deductions from line 25.

Form 40N or 40P filers—Enter your Oregon itemized deductions from line

43 plus any special medical deduction claimed on line 46 .................................. 1.

2. Enter the federal deduction for claim of right included on federal Schedule

A, line 28 ...................................................................................................................... 2.

3. Enter line 1 minus line 2. This is your Oregon itemized deductions without

the claim of right deduction ..................................................................................... 3.

4. Enter your Oregon standard deduction (Form 40, line 26; Form 40N or 40P,

line 44) .......................................................................................................................... 4.

5. Is line 3 larger than line 4?

Yes. Enter zero.

No. Enter line 4 minus line 3 .............................................................................. 5.

6. Enter line 2 minus line 5 ........................................................................................... 6.

7. Enter the federal deduction for claim of right from your federal return* ......... 7.

8. Enter the lesser of line 6 or 7. This is your Oregon addition if you take the

claim of right credit instead of allowing the deduction to flow through .......... 8.

Example 4: In 2012, Adam was required to repay $5,000 of unemployment income from 2011. On his federal return, he

included the claim of right deduction on Schedule A. The federal deduction was more beneficial because he’s in a higher

tax bracket than he was for 2011. For Oregon, he needs to determine whether he should just allow the deduction to flow

through to his Oregon taxable income or claim the credit instead.

Adam calculates the credit which is $450, the difference he paid in tax on this income for 2011. Now he must fill out the addi-

tion worksheet. Then Adam will complete the deduction worksheet to see if he should allow the deduction to flow through

on Schedule A or claiming the Oregon credit instead. His federal itemized deductions of $20,000 less $12,000 of Oregon

taxes, leave him Oregon itemized deductions of $8,000.

Without the claim of right deduction of $5,000, Adam’s itemized deductions would have been only $3,000. Since this is less

than his standard deduction of $3,265, his addition is reduced. He only has to add back the benefit received of $4,735 and

will use the addition worksheet to calculate that amount. Next he’ll complete the deduction worksheet.

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 3