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.
- Do not include Social Security tax (FICA), self-employment 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 2013 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 2012 refund you applied to your 2013 estimated tax.
Pay estimated tax for tax year 2013 if:
You expect to owe $1,000 or more when you file your 2013 Oregon income tax return, and you estimate the total income tax withholding will be less than:
- 100 percent of the tax shown on your 2012 income tax return that covered all 12 months of the year, or
- 90 percent of the tax to be shown on your 2013 income tax return, or
- 90 percent of the tax on your 2013 annualized income.
Even if you expect to owe less than $1,000, you may still make estimated tax payments.
For more information on how to figure your estimated payments and how to obtain payment vouchers, please visit our website or call us.
Note: Estimated tax payments are not a substitute for withholding Oregon income tax from wage income.