Fillable Worksheet Cr - Claim Of Right Income Repayments (Page 8 of 9) in pdf

Example 6: Megan’s deduction worksheet

Enter the amount from the tax before credits line from the first return (Form

40N, line 53 or Form 40P, line 52). This is your Oregon tax before credits after

adding back the federal deduction ........................................................................ 1.

$3,783

Enter the claim of right credit from line 6 of the credit worksheet (page 1) ... 2.

1,780

Line 1 minus line 2. This is your Oregon tax before credits minus the claim

of right credit ............................................................................................................ 3.

2,003

Enter the amount from the tax before credits line from the second return

(Form 40N, line 53 or Form 40P, line 52). This is your Oregon tax before credits

allowing the deduction to flow through .............................................................. 4.

$2,163

Because line 4 is more than line 3, Megan benefits more by claiming the credit for Oregon. Therefore, Megan will enter

$30,000 as a negative amount on the “other deduction and modification” line (line 46) of her 2012 Oregon Form 40N using

modification code 649. Then she’ll include the claim of right credit of $1,780 on line 60 and check box 60b to indicate that

she has a claim of right credit.

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.

Shannon must complete another 2011 Oregon Form 40P return through line 52 and reduce the income in both the Federal and

Oregon to calculate the tax difference. She will use the claim of right credit worksheet to determine her 2012 Oregon credit.

Example 7: Shannon’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.

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

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

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

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

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.

4,470

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.

5,370

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

Shannon will enter $10,000 as a negative amount on the “other deduction and modification” line (line 46) of her 2012 Oregon

Form 40N using modification code 649. Then she’ll include the claim of right credit of $900 on line 60 and check box 60b to

indicate that she has a claim of right credit.

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

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 8

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