OAR 150-315-0010
Claim of Right Credit

(1)

Credit qualifications. If you repaid income that was taxed in a prior year, you may be eligible for a credit on your Oregon return. This rule applies to repayments made on or after January 1, 2013 that are claimed on returns filed after the effective date of this rule. To claim the credit, you must:

(a)

Claim a federal credit or deduction under Internal Revenue Code (IRC) section 1341; and

(b)

Have paid Oregon tax in a prior year on the income that you repaid.

(2)

Credit calculation. Your Oregon claim of right credit is the difference between the Oregon tax you paid in the prior year and the Oregon tax you would have paid without including the repaid income. Calculate your credit as follows:

(a)

Refigure the Oregon tax before credits in the year the income was originally taxed by determining the tax for the year in which the income was originally taxed without the repaid income. Do not change the federal tax subtraction or any other items on the Oregon return.

(b)

Subtract the refigured tax before credits from the Oregon tax before credits as filed (or amended or adjusted, if applicable). This is your claim of right credit.
Example 1: In 2012, Jerry was required to repay $10,000 of the unemployment compensation he had received in 2011. He claimed the claim of right credit on his federal return, so he can also claim the credit for Oregon. For 2011, Jerry had federal adjusted gross income (AGI) of $50,000 and Oregon tax before credits of $3,568. Jerry refigures his 2011 Oregon tax before credits without the repaid income. He reduces his federal AGI compared to what was included in his original 2011 federal return by the amount repaid, $10,000. All other Oregon items stay the same (including the federal tax subtraction). The recalculated Oregon tax before credits is $2,668. The difference between the refigured and original tax before credits is $900 ($3,568 minus $2,668). Jerry’s claim of right credit is $900.

(3)

Federal deduction. If you claim a deduction under IRC § 1341 on your federal return, you can allow the deduction to flow through or you can claim a credit on your Oregon return. Determine by comparing the following amounts:

(a)

Calculate Oregon tax before credits for the year of repayment with the deduction.

(b)

Add back the federal deduction and figure your Oregon tax before credits. Then subtract the Oregon claim of right credit.

(c)

If the tax in (a) is less, allow the deduction for Oregon also. If the tax in (b) is less, add back any deduction as required under ORS 316.680 (Modification of taxable income)(2)(i) and claim the Oregon credit.
Example 2: In 2012, Shannon had to repay wages of $3,800 from tax year 2010. She qualifies to claim itemized deductions and chooses to claim the deduction on her federal return. Oregon allows this deduction to flow through or allows her to claim the credit instead. Her itemized deductions are mostly Oregon taxes, so her Oregon itemized deductions are less than the standard deduction. Therefore, she will not claim itemized deductions for Oregon and will claim the credit instead.
In 2010, she had federal AGI of $45,000 and her 2010 tax was $2,988. If Shannon had not received the $3,800 she had to repay, her 2010 tax would have been $2,679. Her 2012 credit is the difference of $342, which she will claim on her 2012 Oregon return as a claim of right credit. There’s no addition required because she claimed the standard deduction for Oregon, so the federal deduction did not flow through.
[Publications: Publications referenced are available from the agency.]

Source: Rule 150-315-0010 — Claim of Right Credit, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-315-0010.

150‑315‑0005
Tax credit uniformity transfer provisions 150‑315‑0010
Claim of Right Credit 150‑315‑0012
Qualified Reforestation Costs 150‑315‑0014
Procedure for Claiming the Reforestation Credit 150‑315‑0016
Change of Ownership 150‑315‑0018
Reforestation Credit: Reasons Beyond the Taxpayer’s Control 150‑315‑0040
Fish Screening Device Credit 150‑315‑0050
Transfer of Biomass Credit 150‑315‑0060
Crop Gleaning Credit: Information Required 150‑315‑0065
Higher Education Savings (529) and Achieving A Better Life Experience (ABLE) account credit recapture 150‑315‑0070
Agriculture Workforce Housing Credit 150‑315‑0100
Child Care Division Contribution Credit 150‑315‑0110
Scholarship Tax Credit 150‑315‑0121
Working Family Household and Dependent Care Credit 150‑315‑0125
Working Family Household and Dependent Care Penalty 150‑315‑0140
Pollution Control Facilities: Types of Facilities Eligible for Certification 150‑315‑0142
Pollution Control Facilities: Information to be Furnished Upon Request 150‑315‑0144
Pollution Control Facilities: Computation of Credit 150‑315‑0146
Pollution Control Facilities: To Whom Is Credit Allowable 150‑315‑0148
Pollution Control Facilities: Years in Which Credit May Be Claimed 150‑315‑0150
Pollution Control Facilities: Transfer of Facilities 150‑315‑0152
Pollution Control Facilities: Tax Credit Carry Forward 150‑315‑0154
Pollution Control Facilities: Adjustment of Basis 150‑315‑0170
Business Energy Tax Credit: Transfer of Facilities 150‑315‑0180
Oregon Tax Credit Auctions
Last Updated

Jun. 8, 2021

Rule 150-315-0010’s source at or​.us