diff --git a/flake8_idom_hooks/rules_of_hooks.py b/flake8_idom_hooks/rules_of_hooks.py
index c87599b..8280a76 100644
--- a/flake8_idom_hooks/rules_of_hooks.py
+++ b/flake8_idom_hooks/rules_of_hooks.py
@@ -81,7 +81,8 @@ def _visit_loop(self, node: ast.AST) -> None:
     visit_While = _visit_loop
 
     def visit_Return(self, node: ast.Return) -> None:
-        self._current_early_return = node
+        if self._current_component is self._current_function:
+            self._current_early_return = node
 
     def _check_if_hook_defined_in_function(self, node: ast.FunctionDef) -> None:
         if self._current_function is not None:
@@ -111,7 +112,7 @@ def _check_if_propper_hook_usage(self, node: ast.Name | ast.Attribute) -> None:
             self._context.add_error(
                 103,
                 node,
-                f"hook {name!r} used after an early return",
+                f"hook {name!r} used after an early return on line {self._current_early_return.lineno}",
             )
 
 
diff --git a/tests/cases/hook_usage.py b/tests/cases/hook_usage.py
index a6228cf..3595911 100644
--- a/tests/cases/hook_usage.py
+++ b/tests/cases/hook_usage.py
@@ -188,7 +188,7 @@ def use_other():
 def example():
     if True:
         return None
-    # error: ROH103 hook 'use_state' used after an early return
+    # error: ROH103 hook 'use_state' used after an early return on line 190
     use_state()
 
 
@@ -211,3 +211,11 @@ def some_effect():
 
     # Ok: no early return error
     use_state()
+
+
+@idom.component
+def regression_check():
+    @use_effect
+    def effect():
+        # this return caused false passitive early return error in use_effect usage
+        return cleanup