Fillable Worksheet Cr - Claim Of Right Income Repayments (Page 2 of 9) in pdf

Example 1

In 2013, Sophie repaid $10,000 of pension income originally received in 2010. She claimed the Claim of Right credit on her

2013 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 Claim of Right credit 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

Sophie completes the worksheet and determines that the tax in 2010 on $30,000 (previous 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 2013 Form 40 (the year she repaid the income) and check the box labeled “claim of right.”

Example 2

During 2013 Chris was a full-year resident and repaid $25,000 of compensation originally received in 2007. He claimed the

Claim of Right credit on his 2013 federal return. During 2007, Chris filed an Oregon nonresident return (Form 40N). In 2007,

$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. Chris will refigure his 2007 Oregon Form 40N minus $25,000 in the federal column and minus $10,000

in the Oregon column to recalculate his tax without the income that was repaid. This may change his Oregon percentage as

well. Chris will compare the tax before credits on the two 2007 returns to calculate his credit.

In 2007 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

and decreases his Oregon tax to $5,870. Chris’ original tax was $6,766.

Example 2: Chris’ Claim of Right credit worksheet

1. 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 ....................................................................................................

2. Enter the amount of income you repaid in the tax year for which you are cal-

culating the credit .....................................................................................................

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

repaid income ...........................................................................................................

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

150-101-168 (Rev. 12-14)

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Worksheet Cr - Claim Of Right Income Repayments Page 2

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