Form Worksheet CR Fillable Claim of Right Income Repayments
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A blank form for that tax year You must complete another Form 40N or 40P for the year the income was taxed and A copy of your Oregon tax return for the year the income was taxed plus any amended returns or adjustment notices claim of right Form 40 or 40S filers: Form 40N or 40P filers: Oregon tax tables or rate charts from the year the income was taxed Yes Enter zero $1 780 $10 000 of the compensation he repaid was taxable to Oregon He worked part of the time in Oregon during that year and the $11 787 $135 900 $2 163 $3 783 $30 000 $30 000 as a negative amount on the other deduction and modification line (line 46) of her 2012 Oregon Form 40N using $4 735 $40 000 $42 000 $8 000 (Clear form) Clear form (Form 40N line 53 or Form 40P line 52) This is your Oregon tax before credits (line 46) Clearly place a minus sign in front of the number Use modification code 649 If you have more than one other (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) *For tax year 2012 and prior add the special medical deduction claimed on line 46 to the amount on line 43 [Addition code 103] [Modification code 649] 1 780 1 800 356 4222 (toll free from an Oregon prefix) 1 Form 40 filers Enter your net Oregon itemized deductions from line 25 1 Form 40 filers Enter your net Oregon itemized deductions from line 25 10 000 11 763 12 000 12 213 140 635 2 003 2 491 2011 Because Adam claimed the deduction on his 2012 federal return he must fill out the addition worksheet and complete 2013 federal return Her 2010 Oregon tax return was not amended or adjusted and it shows Oregon taxable income of $40 000 3 000 3 265 3 391 3 470 30 000 4 470 4 735 40N line 53 or Form 40P line 52) This is your Oregon tax before credits after 40P line 52 4 40P line 52) 5 40P line 52) 5 43* 1 43* 1 5 000 5 250 5 370 5 870 5 Is line 3 larger than line 4? 5 Is line 3 larger than line 4? 6 766 6 of the addition worksheet Otherwise enter the amount of the claim of right A line 28 2 A line 28 2 Adam uses the worksheet from page 1 and calculates the credit as $450 the difference he paid in tax on this income for Add lines 1 and 2 This is your Oregon taxable income with the required adding back the federal deduction 1 Addition addition when claiming the credit instead 3 Addition worksheet for deduction on Schedule A adjusted (Form 40 line 32; Form 40S line 13; Form 40N line 53; or Form 40P allowing the deduction to flow through 4 amount deducted or the amount from line 6 of the addition worksheet (page 4) Remember if your federal deduction is amount of $30 000 Next she ll complete the deduction worksheet amount on the estimated payment line the year you made the repayment and amount on the estimated payment line the year you made the repayment and amount on the estimated payment line the year you made the repayment and and decreases his Oregon tax to $5 870 Chris original tax was $6 766 and Oregon tax before credits of $3 391 (Form 40 line 32) any other items on the return but do recalculate amounts using the revised Oregon percentage Complete the return as an itemized deduction on her 2012 federal Schedule A Now she needs to decide whether to let the federal Schedule A as an itemized deduction on her 2012 federal Schedule A She has no Oregon source income in 2012 so she would not benefit Asistencia en espa ol: Americans with Disabilities Act (ADA): Call one of the help Because line 4 is more than line 3 Megan benefits more by claiming the credit for Oregon Therefore Megan will enter Because line 7 is more than line 6 Adam benefits more by claiming the credit for Oregon Therefore he will claim the addition been without the income you repaid been without the income you repaid been without the income you repaid before credits on Form 40N line 53 is $3 783 Megan completes a second 2012 Form 40N with the federal deduction included Before Megan can complete the deduction worksheet she must complete two 2012 Oregon Form 40N returns The first return bracket in 2012 than he was for 2011 For Oregon he needs to determine whether he should allow the deduction to flow Calculate the tax for the Oregon taxable income on line 1 This is your Oregon Calculate the tax using the tax tables or rate charts for the taxable income on calculating the credit 2 calculating the credit 2 check the box (Form 40 line 43; Form 40N or 40P line 60) 6 check the box (Form 40 line 43; Form 40N or 40P line 60) 6 check the box (Form 40 line 43; Form 40N or 40P line 60) 6 choose which option is more beneficial for your Oregon return If you let the federal deduction flow through you don t need Chris will include his $896 credit on line 43 of his 2013 Form 40 (the year he repaid the income) and check the box labeled claim a credit on your Oregon return if you have a claim of right deduction or credit on your federal return under IRC 1341 Claim of Right Claim of Right credit Claim of Right credit instead of allowing the deduction to flow through 6 Claim of Right credit instead of allowing the deduction to flow through 6 Claim of Right credit on his 2013 federal return During 2007 Chris filed an Oregon nonresident return (Form 40N) In 2007 Claim of Right credit worksheet Claim of Right deduction claim of right deduction 3 claim of right deduction 3 claimed on Schedule A the Oregon addition is claimed on line 46 Form 40N or 40P (code 649) as a negative amount so be Compare lines 3 and 4 If line 4 is the same or less than line 3 do not claim the credit on the Oregon return Instead allow Compare lines 6 and 7 If line 7 is the same or less than line 6 do not claim the credit on the Oregon return Instead allow Complete two Oregon 40N or 40P tax returns for the year you repaid the income On the first return add back the federal Complete your Oregon Form 40 through line 28 (for the tax year the repayment was made) allowing the federal deduction Corporations may file for relief of tax on repaid income Refer to Oregon Form 20 instructions credit on line 43 of her 2013 Form 40 (the year she repaid the income) and check the box labeled claim of right deduction and modification you will need to use Schedule OR ASC N/P Deduction comparison worksheets deduction flow through for Oregon or claim the credit When she refigures her 2009 Oregon Form 40N tax for the credit deduction from your federal return 2 deduction on Schedule A your addition may be less Use the addition worksheet below to figure the Oregon addition required Deduction worksheet for Form 40 filers Deduction worksheet for Form 40N or 40P filers Did you repay over $3 000 during the year that you reported as taxable income in an earlier year? If so you may be able to During 2013 Chris was a full year resident and repaid $25 000 of compensation originally received in 2007 He claimed the During 2013 Theresa was a full year resident and repaid $5 000 of pension income originally received in 2010 During 2010 En Salem o fuera de Oregon 503 378 4988 numbers above for information in alternative formats Enter the amount from the tax before credits line from the first return (Form Enter the amount from the tax before credits line from the second return Enter the amount of income you repaid in the tax year for which you are Enter the amount of income you repaid in the tax year for which you are Enter the amount of income you repaid in the tax year for which you are calculating Enter the claim of right credit from line 6 of the credit worksheet (page 1) 2 Enter the claim of right credit from line 6 of the credit worksheet (page 1) 5 Enter the federal deduction for claim of right included on federal Schedule Enter the federal deduction for claim of right included on federal Schedule Enter your Oregon standard deduction (Form 40 line 26; Form 40N or 40P Enter your Oregon standard deduction (Form 40 line 26; Form 40N or 40P Enter your Oregon tax before credits from the return you filed as amended Enter your Oregon tax before credits from the return you filed as amended Enter your Oregon tax before credits from the return you filed as amended or Enter your Oregon taxable income as amended or adjusted for the year the Enter your Oregon taxable income as amended or adjusted for the year the Enter your Oregon taxable income as amended or adjusted for the year the Enter your Oregon taxable income from Form 40 line 28 1 Example 1 Example 1: Sophie s Claim of Right credit worksheet Example 2 Example 2: Chris Claim of Right credit worksheet Example 3 Example 4 Example 4: Adam s addition worksheet for deduction on Schedule A Example 5 Example 5: Adam s deduction worksheet Example 6 Example 6: Megan s addition worksheet for deduction on Schedule A Example 6: Megan s claim of right credit worksheet Example 6: Megan s deduction worksheet Example 7 Example 7: Shannon s claim of right credit worksheet federal deduction see page 4 To calculate the credit you will need the following: filers skip to line 4 1 filers skip to line 4 1 filers skip to line 4 1 for each tax year to determine the credit for each tax year Then claim the total of all credits on your return the year you For tax year Form 40 filers enter the amount from line 6 as an other addition (line 10) Use addition code 103 Form 40 or 40S filers Enter the tax from the tax tables or rate charts for the Form 40 or 40S filers Enter the tax from the tax tables or rate charts for the Form 40 or 40S filers Enter the tax from the tax tables or rate charts for the Form 40N or 40P filers enter the amount from line 6 as a negative amount on the other deduction and modification line Form 40N or 40P filers Enter your Oregon itemized deductions from line Form 40N or 40P filers Enter your Oregon itemized deductions from line Form 40N or 40P filers Enter your Oregon tax before credits from the return Form 40N or 40P filers Enter your Oregon tax before credits from the return Form 40N or 40P filers Enter your Oregon tax before credits from the return 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 Form 40P line 52) 4 Form 40P line 52) 4 from allowing the deduction to flow through to her Oregon return and will instead claim the Oregon credit General tax information www oregon gov/dorTTY (hearing or speech impaired; machine only): Gratis de prefijo de Oregon 1 800 356 4222 Have questions? Need help? his 2007 return with $200 000 in the federal column and $70 000 in the Oregon column This changes his Oregon percentage If the credit results in less tax you can claim the Oregon credit You must add back any federal deduction to claim the credit If you claimed a credit on your federal return follow these instructions to calculate your Oregon credit If you claimed a If you claimed a deduction on your federal return for your repayment that was over $3 000 and was previously taxed by If you claimed a federal deduction for the repayment on your federal return you have a choice of how to claim it on your If you completed the addition worksheet (page 4) enter the amount from line If you have questions or need more information visit our website at www oregon gov/dor Or call 503 378 4988 (Salem) or In 2007 he originally had wages of $225 000 in the federal column and $80 000 in the Oregon column Chris will refigure in 2009 and $20 000 of the compensation she repaid was taxable to Oregon Megan claimed the $30 000 repayment In 2012 Adam was required to repay $5 000 of unemployment income from 2011 On his 2012 federal return he included In 2012 Megan an Oregon nonresident repaid $30 000 of compensation originally received in 2009 She was also a nonresident In 2013 Sophie repaid $10 000 of pension income originally received in 2010 She claimed the Claim of Right credit on her in each column Complete the return through the Oregon tax before credits line (Form 40N line 53 or Form 40P line 52) in itemized deductions and determines her tax before credits is $2 163 in the Oregon column to recalculate his tax without the income that was repaid This may change his Oregon percentage as Income Repayments income was taxed (Form 40 line 28 or Form 40S line 12) Form 40N or 40P income was taxed (Form 40 line 28 or Form 40S line 12) Form 40N or 40P income was taxed (Form 40 line 28 or Form 40S line 12) Form 40N or 40P income was taxed This is what your Oregon tax before credits would have income was taxed This is what your Oregon tax before credits would have income was taxed This is what your Oregon tax before credits would have indicate that she has a claim of right credit instead His 2012 federal itemized deductions of $20 000 less $12 000 of Oregon taxes leaves him Oregon itemized deductions Line 1 minus line 2 This is your Oregon itemized deductions without the Line 1 minus line 2 This is your Oregon itemized deductions without the Line 1 minus line 2 This is your Oregon tax before credits minus the claim Line 1 minus line 2 This is your Oregon taxable income without the Line 1 minus line 2 This is your Oregon taxable income without the Line 1 minus line 2 This is your Oregon taxable income without the Line 2 minus line 5 This is your Oregon addition if you take the Oregon Line 2 minus line 5 This is your Oregon addition if you take the Oregon line 3 Be sure to use the current year tables or charts for the year you repaid Line 4 minus line 5 This is your Oregon tax before credits minus the claim line 44) 4 line 44) 4 Line 5 minus line 4 This is your Oregon claim of right credit Include this Line 5 minus line 4 This is your Oregon claim of right credit Include this Line 5 minus line 4 This is your Oregon claim of right credit Include this line 52) 5 made the repayment Megan completes the worksheet and determines that the tax difference in 2009 on the $20 000 of repaid income is $1 780 Megan s 2012 Oregon claim of right credit is $1 780 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 More than one tax year repaid If you repaid income from more than one tax year complete a separate credit worksheet No Enter line 4 minus line 3 5 No Enter line 4 minus line 3 5 Now Megan needs to use the addition worksheet to figure the Oregon addition required if she takes the Oregon claim of Now we ll see if Adam from example 4 benefits more from allowing the federal deduction to flow through from his federal of $4 735 on Form 40 (addition code 103) on his 2012 Oregon return Then he ll include the claim of right credit of $450 of $8 000 of right credit 3 of right credit 6 on her 2013 Oregon return for the pension income she repaid during 2013 because Oregon did not tax the income in 2010 on line 43 and check box 43b to indicate that he has a claim of right credit On the second return allow the federal deduction to flow through to Oregon and complete the return through the Oregon on your Oregon return To see which option is best first calculate your credit on the credit worksheet on page 1 Then if only has to add back the benefit received of $4 735 Next he ll complete the deduction worksheet below or adjusted (Form 40 line 32; Form 40S line 13; Form 40N line 53; or Form or adjusted (Form 40 line 32; Form 40S line 13; Form 40N line 53; or Form Oregon claim of right credit Remember you must add back the federal deduction to claim the credit Oregon instead Unless otherwise stated all references are to the tax year when you repaid the income Oregon return The federal deduction can flow through to your Oregon return or you can claim the credit instead You can Oregon taxable income on line 3 Use the tables or charts from the year the Oregon taxable income on line 3 Use the tables or charts from the year the Oregon taxable income on line 3 Use the tables or charts from the year the Oregon to calculate the tax difference She will use the claim of right credit worksheet to determine her 2012 Oregon credit Oregon use the appropriate worksheet below depending on the type of form you re filing for the year of the repayment ORS 315 068 otherwise stated all references are to the tax year when you repaid the income part year resident in 2011 and all of the income she repaid was taxable to Oregon Shannon claimed the $10 000 repayment purpose of calculating claim of right reduce your Oregon and federal income by the repaid amount This is the only difference between this return and the repaid income 3 repaid income 3 repaid income 3 Repayments of $3 000 or less do not qualify for an Oregon credit required complete the addition worksheet (below) Finally complete the deduction worksheet for your form type on page 5 rest in Washington Chris will refigure his 2007 Oregon Form 40N minus $25 000 in the federal column and minus $10 000 return you filed (including amendments or adjustments) Your Oregon percentage will likely change Do not adjust right credit Salem 503 378 4988 Salem area or outside Oregon 503 945 8617 Schedule A or claiming the credit for Oregon instead Shannon an Oregon nonresident repaid $10 000 in 2012 of Oregon unemployment originally received in 2011 She was a Shannon must complete another 2011 Oregon Form 40P return through line 52 and reduce the income in both the Federal and Shannon will enter $10 000 as a negative amount on the other deduction and modification line (line 46) of her 2012 Oregon she completes is a 2012 Form 40N adding back the federal deduction as a negative amount on line 46 using code 649 Her tax she filed an Oregon nonresident return (Form 40N) and had no income taxable to Oregon Theresa cannot claim a credit she has a claim of right credit she repaid) would have been $2 491 This is a difference of $900 (line 6 of the credit worksheet) Sophie will include her $900 Since Adam s itemized deductions would have been less than his standard deduction of $3 265 his addition is reduced He Since Megan s itemized deductions are still more than the standard deduction she needs to add back the whole repayment Sophie completes the worksheet and determines that the tax in 2010 on $30 000 (previous taxable income minus the amount sure to put a minus sign in front of the amount on line 46 If your federal deduction is claimed elsewhere on the federal return tax before credits line tax before credits with the deduction 7 The addition on your Oregon return is generally equal to the deduction on your federal return If you claimed the federal the claim of right deduction on Schedule A ($5 000) The federal deduction was more beneficial because he s in a higher tax the credit 2 the deduction claimed on the federal return to flow through to your Oregon return If line 4 is more than line 3 claim the the deduction claimed on the federal return to flow through to your Oregon return If line 7 is more than line 6 claim the the deduction worksheet to see if he should allow the deduction to flow through on Schedule A or claim the Oregon credit the income 4 The worksheet will show if you benefit more from allowing the federal deduction to flow through or claiming the credit for through Form 40N line 53; or Form 40P line 52 tax before credits Do not file this return Use this return only for the through to his Oregon taxable income or claim the credit instead to do anything further on your Oregon return to flow through to your Oregon return and then complete this worksheet Toll free from an Oregon prefix 1 800 356 4222 Toll free from an Oregon prefix 1 800 886 7204 well Chris will compare the tax before credits on the two 2007 returns to calculate his credit when taking the claim of right deduction on federal Schedule A and the claim of right credit on your Oregon return Unless Worksheet worksheet Megan will deduct $30 000 from income in the federal column and $20 000 from income in the Oregon column Yes Enter zero you completed without the income that was repaid (Form 40N line 53; or you completed without the income that was repaid (Form 40N line 53; or you completed without the income that was repaid (Form 40N line 53; or Form your addition is entered on line 33 Form 40N or 40P (code 103) with the amount corresponding to the deduction claimed