Instructions For Form 40es - Estimated Income Tax

address. The forms are printed with the taxpayer’s

• Federal Schedule E, line 41.

name, address, Social Security number, and an account

File Form 10, “Underpayment of Oregon Estimated Tax,”

number. Please check this information for accuracy.

to show you qualify as a farmer or fisher. File the form

Use blue ink if you make any corrections on the form.

with your 1999 Oregon income tax return. Your 1999

If you received joint personalized payment coupons

Oregon return is due April 17, 2000. To get Form 10 and

but want to make payments under your name only,

instructions, see page 8.

cross out your spouse’s name and Social Security num-

Additional withholding

ber.

Use your personalized forms if you receive them.

If you don’t have enough Oregon tax withheld from your

We can process your estimated tax payments faster and

wages, ask your employer to increase your Oregon with-

more accurately. Do not use forms from a prior year.

holding. You may change your Oregon withholding with-

out changing your federal withholding. File a new federal

If someone else prepares your estimated tax forms, ask

Form W-4 (Employee’s Withholding Allowance Certifi-

them to use your personalized forms.

cate) with your employer and label it “For Oregon only.”

Don’t send photocopies of the personalized forms.

Do you and your spouse both work? Do you or your

Send the original Form 40ES to us and keep copies for

spouse have two jobs? An information circular, “Oregon

your records. Fill in only the information requested on

Income Tax Withholding: Some Special Cases,” can help

Form 40ES.

you figure the amount of tax to be withheld from your

•“Nonpersonalized” forms don’t have printed names

wages. To order, see page 8.

or other personal information. They are used by people

Retirees

who haven’t filed estimated tax payments before.

If you are retired or soon will retire, you may need to

Gross income

make estimated tax payments. Or, you may have Oregon

income tax withheld from your retirement income.

Generally, gross income includes all income you receive

Contact the payer of this income to see if this is possible.

during the year. There are exceptions, such as Social

Security, Railroad retirement, or welfare payments.

Due to a recent Oregon Supreme Court ruling, eligible

federal retirees no longer have to pay Oregon tax on their

Gross income includes wages, interest, and dividends.

federal pensions. Those who worked for and retired from

It also includes gross profit from rentals, royalties, busi-

the U.S. Government prior to October 1, 1991 will not

nesses, farming, and fishing. Don’t subtract expenses,

need to make estimated tax payments to Oregon on their

except cost of goods sold, when figuring gross profit.

federal pensions. However, federal retirees should

Gross income includes ordinary and capital gains from

continue to make estimated tax payments if they receive

the sale of property.

income from other sources.

Farmers and commercial fishers

Federal retirees with service time both before and after

October 1, 1991 must continue to pay taxes on that por-

Most farmers and fishers won’t need to make estimated

tion of their federal pension attributable to service after

tax payments. But you must file Form 10 to show you

October 1, 1991.

qualify as a farmer or fisher.

Special note: For 1999, you must be at least 62 years

To determine if you need to make estimated tax pay-

old to qualify for the retirement income credit and the

ments, figure both your 1998 gross income and your

special Oregon medical deduction.

1999 estimated gross income.

Nonresidents and part-year residents

If two-thirds of your total 1998 gross income or two-thirds

of your total 1999 gross income is from farming or fish-

Nonresidents figure Oregon estimated tax only on

ing, you don’t need to make estimated tax payments.

income that is:

Farmers. Use the amounts on the following lines to

1. Subject to Oregon withholding; or

determine your gross income from farming:

2. From conducting a trade or business within Oregon.

• Federal Schedule F, line 11.

Federal law prohibits Oregon from taxing nonresidents’

• Federal Schedule E, line 41.

retirement income benefits received on or after

• Federal Form 4797, sale of livestock held for draft,

January 1, 1996.

breeding, or dairy purposes.

In most cases you must make Oregon estimated tax pay-

Commercial Fishers. Use the amounts on the

ments if you expect to owe more than $500 tax on your

following lines to determine your gross income from

income from Oregon sources.

commercial fishing:

The amount of your payment is based on the tax you

• Federal Schedule C, line 7.

compute using one of the methods shown on page 5.

• Federal Schedule C-EZ, line 1.

Use your 1998 Form 40N or Form 40P as a guide to

2/How to use Form 40ES

Instructions For Form 40es - Estimated Income Tax - 1999 Page 3

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