Oregon law requires some taxpayers to pay estimated tax. Oregon’s estimated tax system is similar to the federal system, but when you figure estimated tax for Oregon:
• Use Oregon income tax laws and tax rates.
• Don’t include Social Security tax (FICA), selfemployment tax, or household employment tax.
In most cases, you must make estimated tax payments if you expect to owe $1,000 or more when you file your 2019 Oregon income tax return. That’s tax you owe after you subtract your credits and the tax withheld from your income, but before you subtract any 2018 refund you applied to your 2019 estimated tax.
Pay estimated tax for tax year 2019 if: You expect to owe $1,000 or more when you file your 2019 Oregon income tax return, and you estimate the total income tax withholding will be less than:
• One hundred percent of the tax shown on your 2018 income tax return that covered all 12 months of the year; or
• Ninety percent of the tax to be shown on your 2019 income tax return; or
• Ninety percent of the tax on your 2019 annualized income. Even if you expect to owe less than $1,000, you may still make estimated tax payments.
For information on how to figure your estimated payments and how to obtain payment vouchers, visit our website or contact us for Publication OR-ESTIMATE.
Note: Estimated tax payments aren’t a substitute for withholding Oregon income tax from wage income.
Farmers and commercial fishermen Farmers and fishermen aren’t required to pay estimated tax if at least two-thirds of their 2018 gross income or two-thirds of their 2019 estimated gross income from all sources is from farming or fishing. This includes oyster farming. Enter Exception #1 on your tax return and on Form OR-10.