Worksheet OR-CRC
                                Claim of Right Income Repayments

 General instructions                                           Note: If you’re reporting an addition on Schedule OR-ASC-
                                                                NP, enter the total repayment amount in the federal column 
If you had to repay an amount that you included in your         and the amount taxed by Oregon in the Oregon column.
Oregon income in an earlier year, you may be able to claim      If you're not claiming the Oregon repayment credit, there is 
a credit for the Oregon tax you paid on that income when 
                                                                nothing else you need to do.
you file your return for the repayment year. 
The Oregon claim of right income repayment credit may 
be claimed on your Oregon personal income tax return if:        How do I calculate the credit?

• Your repayment is more than $3,000,                           Gather the following items for the reported year (the year 
• You paid Oregon tax on the income you repaid, and             the income was taxed by Oregon): 
• You're claiming the repayment credit or deduction on your 
 federal return.                                                • A copy of your Oregon tax return, including any amended 
                                                                returns or adjustment notices.
Repayments of $3,000 or less don’t qualify for the Oregon       • Oregon tax tables or rate charts.
credit. Note: Corporations may file for relief of tax on repaid 
                                                                • If you filed a part-year or nonresident return, a blank part-
income; refer to Form OR-20 instructions.
                                                                year or nonresident return form. Follow the instructions 
For more information about claim of right income repay-         for Worksheet B to complete the form.
ments, see Internal Revenue Service Publication 535.
                                                                Use Worksheet A if you filed a full-year return. Use Work-
This worksheet needs to be kept with your records.              sheet B if you filed a part-year or nonresident return for the 
                                                                reported year.
 What if I’m claiming the federal                               Multiple years. If you repaid income from more than one 
 deduction?                                                     tax year, complete a separate worksheet for each year that 
                                                                the income was reported and taxed by Oregon. Claim the 
The federal repayment deduction is claimed on the same          total of all credits on the return you’re filing for the repay-
schedule where you reported the income or as an itemized        ment year.
deduction on Schedule A, depending on the type of income 
you repaid. You can't claim both the federal repayment 
deduction and the Oregon repayment credit. If you claim the     Where do I claim the credit?
Oregon repayment credit, you must add back the amount of 
any repayment deduction claimed on the return.                  Claim the credit on the return you’re filing for the repay-
                                                                ment year: 
Full-year filers. If you’re filing a full-year return for the 
repayment year and you’re deducting the repayment amount        —  2014 and prior: Form 40, line 43, mark box 43b; Form 40P 
on Schedule OR-A or any federal form or schedule, report an     or 40N, line 60, mark box 60b.
addition on Schedule OR-ASC Section A, using code 103 if        —  2015 through 2020: Schedule OR-ASC, section 5; Schedule 
you're claiming the credit. If you're not claiming the repay-   OR-ASC-NP, section 7; use code 890.
ment credit, there is nothing else you need to do.              —  2021 and later: Schedule OR-ASC, section F; Schedule 
                                                                OR-ASC-NP, section H; use code 890.
Part-year or nonresident filers. If you’re filing a part-year 
or nonresident return for the repayment year, claiming the 
Oregon repayment credit, and deducting the repayment            Do you have questions or need help?
amount:
• As an itemized deduction on Schedule OR-A: Use a minus          www.oregon.gov/dor
 sign with the repayment amount to report a negative            503-378-4988 or 800-356-4222
 modification on Schedule OR-ASC-NP, Section D, using           questions.dor@ dor.oregon.gov
 code 649.
• On another federal form or schedule: Report an addition       Contact us for ADA accommodations or assistance in other 
 on Schedule OR-ASC-NP, Section A, using code 103.              languages.

150-101-168 (Rev. 08-18-22)                         Page 1 of 1

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71           Worksheet OR-CRC                                                                                                                                              71
72           Page 1 of 2, 150-101-168               Oregon Department of Revenue            01520001010000                                                                 72
73           (Rev. 08-18-22, ver. 01)                                                                                                                                      73
74                                                                                                                                                                         74
75           Tax year involved for the repayment 9999              Tax year the repayment was originally claimed  9999                                                     75
76                                                                                                                                                                         76
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             Worksheet A: Full-year return filed for the reported year (year the income was taxed)
78                                                                                                                                                                         78
79           1.  Enter your Oregon taxable income from your return for the reported year, as amended or adjusted ... 1.                                  999,999,999.00.00 79
80            — 2018 and later: Form OR-40, line 19.                                                                                                                       80
81            — 2017 and 2016: Form OR-40, line 21.                                                                                                                        81
82            — 2015: Form 40, line 21.                                                                                                                                    82
83            — 2014 and prior: Form 40, line 28.                                                                                                                          83
84           2.  Enter the amount of income you repaid in the tax year for which you’re claiming the credit .................... 2.                      999,999,999.00.00 84
85           3.  Line 1 minus line 2. This is your Oregon taxable income without the repaid income ................................ 3.                   999,999,999.00.00 85
86           4.  Using the tax tables or rate charts from the reported year, enter the tax on the amount                                                                   86
87            on line 3. This equals your Oregon tax before credits without the repaid income ..................................... 4.                   999,999,999.00.00 87
88           5.  Enter your Oregon tax before credits from your return for the reported year, as amended or adjusted ... 5.                              999,999,999.00.00 88
89            — 2018 and later: Form OR-40, line 22.                                                                                                                       89
90            — 2017 and 2016: Form OR-40, line 24.                                                                                                                        90
91            — 2015: Form 40, line 24.                                                                                                                                    91
92            — 2014 and prior: Form 40, line 31.                                                                                                                          92
93           6.  Line 5 minus line 4. This is your Oregon claim of right credit ..................................................................... 6. 999,999,999.00.00 93
94                                                                                                                                                                         94
95           Example 1                                                                                                                                                     95
96           Sophie is a lifelong resident whose filing status for tax year 2019 was single. In 2022, Sophie repaid $10,000 of pension income originally                   96
97           received and reported in 2019. She is claiming the repayment credit on her 2022 federal return. Her 2019 Oregon tax return shows Oregon                       97
98           taxable income of $40,000 and Oregon tax before credits of $3,252. She calculates her credit using Worksheet A:                                               98
99                                                                                                                                                                         99
100          1.  Enter your Oregon taxable income from your return for the reported year, as amended or adjusted ... 1.                                  40,000.00         100
101          2.  Enter the amount of income you repaid in the tax year for which you’re claiming the credit .................... 2.                      10,000.00         101
102          3.  Line 1 minus line 2. This is your Oregon taxable income without the repaid income ................................ 3.                   30,000.00         102
103          4.  Using the tax tables or rate charts from the reported year, enter the tax on the amount                                                                   103
104           on line 3. This equals your Oregon tax before credits without the repaid income ..................................... 4.                   2,377.00          104
105          5.  Enter your Oregon tax before credits from your return for the reported year, as amended or adjusted ... 5.                              3,252.00          105
106          6.  Line 5 minus line 4. This is your Oregon claim of right credit ..................................................................... 6. 875.00            106
107                                                                                                                                                                        107
108          To claim the Oregon credit, Sophie enters $875 on Schedule OR-ASC, section F, using credit code 890.                                                          108
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             Worksheet B: Part-year or nonresident return filed for the reported year (year the income was taxed)
111                                                                                                                                                                        111
112          Before you start, use the blank return form to create a duplicate part-year or nonresident return for the reported year:                                      112
113                                                                                                                                                                        113
114          •  Enter all income items except for the income you repaid as they were reported on the return you filed for that year, including                             114
115           amendments or adjustments. Don’t include the repaid income on the duplicate return.                                                                          115
116          •  If your Oregon percentage changes as a result, use the revised percentage to calculate your deductions, tax, or other amounts.                             116
117           Don't adjust any other items on the return.                                                                                                                  117
118          •  Complete the return through the "Total tax before credits" line.                                                                                           118
119          Don't file the duplicate return. Use it only to help you calculate your credit amount.                                                                        119
120                                                                                                                                                                        120
121          1.  Enter your Oregon tax before credits from your return for the reported year, as amended or adjusted ... 1.                              999,999,999.00.00 121
122           — 2018 and later: Form OR-40-N, line 48; Form OR-40-P, line 47.                                                                                              122
123           — 2017 and 2016: Form OR-40-N, line 50; Form OR-40-P, line 49.                                                                                               123
124           — 2015: Form 40N, line 51; Form 40P, line 50.                                                                                                                124
125           — 2014 and prior: Form 40N, line 53; Form 40P, line 52.                                                                                                      125
126          2.  Enter the Oregon tax before credits amount from the duplicate return ................................................... 2.             999,999,999.00.00 126
127          3.  Line 1 minus line 2. This is your Oregon claim of right credit ..................................................................... 3. 999,999,999.00.00 127
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129                     Don’t include this worksheet with your Oregon return. Keep it with your tax records.                                                               129
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137          Worksheet OR-CRC                                                                                                                                     137
138          Page 2 of 2, 150-101-168            Oregon Department of Revenue        01520001020000                                                               138
139          (Rev. 08-18-22, ver. 01)                                                                                                                             139
140                                                                                                                                                               140
141          Example 2                                                                                                                                            141
142          During 2022, Chris, a full-year resident, repaid some compensation originally received and reported in 2020. He’s claiming the income                142
143          repayment credit on his 2022 federal return. In 2020, when Chris was a Washington state resident, he worked part of the time in                      143
144          Oregon. Out of the $25,000 in repaid compensation, $17,000 was taxed by Oregon.                                                                      144
145                                                                                                                                                               145
146          The 2020 Form OR-40-N that he filed shows the following:                                                                                             146
147          Federal income                                $225,000           Total deductions and modifications ($20,000 x 0.356)                       $ 7,120  147
148          Oregon income                                 $ 80,000           Oregon taxable income ($80,000 - $7,120)                                   $72,880  148
149          Oregon percentage ($80,000 ÷ $225,000) 35.6%                     Total tax before credits                                                   $ 6,124  149
150          Net itemized deductions                       $ 20,000                                                                                               150
151                                                                                                                                                               151
152          Chris uses a blank 2020 Form OR-40-N to create a duplicate return without the repaid income. It shows:                                               152
153          Federal income ($225,000 - $25,000)           $200,000           Total deductions and modifications ($20,000 x 0.315)                       $ 6,300  153
154          Oregon income ($80,000 - $17,000)             $ 63,000           Oregon taxable income ($63,000 - $6,300)                                   $56,700  154
155          Oregon percentage ($63,000 ÷ $200,000) 31.5%                     Total tax before credits                                                   $ 4,708  155
156          Net itemized deductions                       $ 20,000                                                                                               156
157                                                                                                                                                               157
158          Next, Chris completes Worksheet B to calculate his credit:                                                                                           158
159          1.  Enter your Oregon tax before credits from your return for the reported year, as amended or adjusted ... 1.                              6,124.00 159
160          2.  Enter the Oregon tax before credits amount from the duplicate return ................................................... 2.             4,708.00 160
161          3.  Line 1 minus line 2. This is your Oregon claim of right credit ..................................................................... 3. 1,416.00 161
162                                                                                                                                                               162
163          To claim the Oregon credit, Chris enters $1,416 on Schedule OR-ASC, section F, using credit code 890.                                                163
164                                                                                                                                                               164
165          Example 3                                                                                                                                            165
166          During 2022, Theresa, a full-year resident, repaid $5,000 of unemployment income she received and reported as taxable income in                      166
167          2021. During 2021, Theresa was an Idaho resident whose Oregon income was from rental properties. She filed a 2021 Oregon Form                        167
168          OR-40-N to report the rental income, but her unemployment income wasn’t taxable to Oregon. Theresa can’t claim a credit on her                       168
169          2022 Oregon return for the unemployment income she repaid during 2022 because Oregon didn’t tax that income in 2021.                                 169
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195                         Don’t include this worksheet with your Oregon return. Keep it with your tax records.                                                  195
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