ORS 315.068
Claim of right income repayment adjustments
(1)
A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed to a taxpayer for a claim of right income repayment adjustment.(2)
The credit shall be allowed under this section only if the taxpayer’s federal tax liability is determined under section 1341(a) of the Internal Revenue Code.(3)
The amount of the credit shall equal the difference between:(a)
The taxpayer’s actual Oregon state tax liability for the tax year for which the claim of right income was included in gross income for federal tax purposes; and(b)
The taxpayer’s Oregon state tax liability for that tax year, had the claim of right income not been included in gross income for federal tax purposes.(4)
A credit under this section shall be allowed only for the tax year for which the taxpayer’s federal tax liability is determined under section 1341 of the Internal Revenue Code for federal tax purposes.(5)
If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as a payment of tax under ORS 314.505 (Estimate of tax liability by corporations) to 314.525 (Underpayment of estimated tax), 316.187 (Amount withheld is in payment of employee’s tax) and 316.583 (Effect of payment of estimated tax or installment), other payments of tax and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314, 315, 316, 317 and 318 (reduced by any nonrefundable credits allowed for the tax year), the excess shall be treated as an overpayment of tax and shall be refunded or applied in the same manner as other tax overpayments.(6)
As used in this section, “claim of right income” means:(a)
An item included in federal gross income for a prior tax year because it appeared that the taxpayer had an unrestricted right to the item; and(b)
An item for which the taxpayer’s federal tax liability is adjusted under section 1341 of the Internal Revenue Code because the taxpayer did not have an unrestricted right to the item of gross income. [1999 c.1007 §2; 2001 c.660 §19](2)
If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 (Amount withheld is in payment of employee’s tax) or 316.583 (Effect of payment of estimated tax or installment), other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502 (Distribution of revenue to General Fund). [2021 c.589 §8]
Source:
Section 315.068 — Claim of right income repayment adjustments, https://www.oregonlegislature.gov/bills_laws/ors/ors315.html.
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