If you previously claimed the rural physician’s tax credit and have subsequently ended your practice in this rural area, within four years following the year that you claimed the credit, you are required to pay back your previous credit(s) claimed.
For example, if you claimed four consecutive $5,000 rural physician’s credits for a total of $20,000 in years 2007, 2008, 2009, and 2010, and then in 2014 you ended your practice in the rural area that qualified you for that credit, you are required to pay back $5,000 for the credit that you claimed in 2010. You are entitled to the 2007, 2008 and 2009 credits since you maintained your practice in the rural area for at least four additional years after becoming eligible for this credit.
On this line, enter the amount of your rural physician’s credit recapture tax and enter the code ‘RP’ in the space indicated.
If you are married filing separately on the same form and each spouse has a recapture, enter the amount and code in the appropriate column. If you are reporting more than one recapture in one column, enter the total recapture amount for both and the code for the higher recapture.