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

Example 5: Now we’ll see if Adam, from example 4, benefits more from allowing the federal deduction to flow through or

claiming the credit for Oregon.

Example 5: Adam’s deduction worksheet

1. Enter your Oregon taxable income from Form 40, line 28 .................................. 1.

$135,900

2. If you completed the addition worksheet above, enter the amount from line 8

of the addition worksheet. Otherwise, enter the amount of the claim of right

deduction from your federal return ....................................................................... 2.

4,735

3. Add lines 1 and 2. This is your Oregon taxable income with the required

addition when claiming the credit instead ..........................................................

140,635

4. Calculate the tax using the tax tables or rate charts for the taxable income on

line 3. Be sure to use the current year tables or charts for the year you repaid

the income .................................................................................................................. 4.

12,213

5. Enter the claim of right credit from line 6 of the credit worksheet ................... 5.

450

6. Line 4 minus line 5. This is your Oregon tax before credits minus the claim

of right credit ............................................................................................................. 6.

11,763

Calculate the tax for the Oregon taxable income on line 1. This is your Oregon

tax before credits allowing the deduction to flow through ................................ 7.

$11,787

Adam is benefiting more by claiming the credit for Oregon. Therefore, he will claim the addition of $4,735 on Form 40, line

10 and identify it using code 103. Then he’ll include the claim of right credit of $450 on line 43 and check box 43b to indicate

that he has a claim of right credit.

Example 6: In 2012, Megan, an Oregon nonresident, repaid $30,000 of compensation originally received in 2009. She was also

a nonresident in 2009 and $20,000 of the compensation she repaid was taxable to Oregon. Megan claimed the $30,000 repay-

ment as an itemized deduction on her Schedule A. Now she needs to decide whether to let that flow through for Oregon or

claim the credit. When she refigures her Oregon tax for the credit worksheet, Megan will deduct $30,000 from income in the

federal column and $20,000 from income in the Oregon column of her 2009 Form 40N. Then she will recalculate her Oregon

tax. Megan’s 2012 Oregon claim of right credit is $1,780. She determines that she must add back the entire $30,000 claimed

on her federal Schedule A if she claims the Oregon credit.

Megan first completes a 2012 Form 40N adding back the federal deduction as a negative amount on line 46 using code 608.

Her tax before credits on Form 40N, line 53 is $3,783, so she enters this amount on line 1 of the deduction worksheet. She

enters the credit of $1,780 on line 2 of the worksheet. This gives her $2,003 on line 3 of the worksheet. Now Megan completes

a second 2012 Form 40N with the federal deduction included in itemized deductions and determines her tax before credits

is $2,163 (line 4 of the worksheet). Because line 4 is more than line 3, she benefits more from claiming the credit and adding

back the federal deduction.

Example 7: Shannon, an Oregon nonresident, repaid $10,000 in 2012 of Oregon unemployment originally received in 2011.

She was a part-year resident in 2011 and all of the income she repaid was taxable to Oregon. Shannon claimed the $10,000

repayment as an itemized deduction on her 2012 federal Schedule A. She has no Oregon source income in 2012, so she would

not benefit from allowing the deduction to flow through to her Oregon return and will instead claim the Oregon credit. She

will add back the deduction by entering a negative $10,000 on line 46 using code 608. Then she’ll claim her Oregon credit,

which is $900, on Form 40N, line 60, and check box 60b.

Corporations may file for relief of tax on repaid income. Refer to Oregon Form 20 instructions.

If you have questions or need more information, visit our website at Or call 503-378-4988 (Salem) or

1-800-356-4222 (toll-free from an Oregon prefix).

Have questions? Need help?

General tax information ................

TTY (hearing or speech impaired; machine only):

Salem ............................................................ 503-378-4988

Salem area or outside Oregon .................. 503-945-8617

Toll-free from an Oregon prefix .............1-800-356-4222

Toll-free from an Oregon prefix .............1-800-886-7204

Asistencia en español:

Americans with Disabilities Act (ADA): Call one of the help

En Salem o fuera de Oregon ..................... 503-378-4988

numbers above for information in alternative formats.

Gratis de prefijo de Oregon ....................1-800-356-4222

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 5

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