Instructions For Form 40es - Estimated Income Tax

Methods to figure your estimated tax

Method 3: 90 percent of your 1999 annualized net

income tax. If you receive a larger portion of your tax-

Method 1: 90 percent of your 1999 net income tax. To

able income later in the year, you may annualize your

figure your payments under this method, use the

income to figure your estimated tax payments. Use the

appropriate worksheet on page 4 or 5. See the worksheet

annualized income worksheet on the 1998 Oregon Form

guide for Method 1.

10 as a guide to figure your estimated tax payments

Method 2: 100 percent of the net tax (tax after credits)

under this method. To order Form 10, see page 8.

shown on your 1998 income tax return. Your 1998

return must be filed on time, including extensions. Pay

Worksheet guide for Method 1

25 percent of your 1998 net income tax by each estimated

Use your 1998 income tax return and instructions as

tax payment due date. Net income tax is the amount you

guides to estimate your 1999 federal adjusted gross

owe after credits. You can’t use this method if you (1)

income (AGI). Your 1998 federal AGI is on Form 1040,

didn’t file a 1998 return, or (2) your 1998 return was filed

line 33; Form 1040A, line 18; or Form 1040EZ, line 4.

for less than 12 months.

Example: Allan and Louise are married and have three

Note: If your 1998 adjusted gross income was more than

children. Allan is self-employed. Louise works for a den-

$150,000 ($75,000 if married filing separately in 1999),

tist. They want to know if they must make 1999 estimated

you must use 110 percent of the tax shown on your 1998

tax payments. They use these steps to find out:

income tax return instead of 100 percent to figure your

estimated tax under Method 2.

1. They use their 1998 federal tax return as a guide to

estimate their 1999 federal AGI.

Nonresident and part-year resident filers

Estimated tax worksheet

Keep this worksheet for your records

1. 1999 Oregon estimated income tax. Use your 1998 Oregon and federal income tax

returns and instructions as guides .......................................................................................

1. ____

______

2. Oregon income tax credits you expect for 1999 ................................................................

<________ >

On a separate sheet, multiply your credits by your Oregon

percentage (if required). Refer to the Oregon income tax return

instructions. Enter your total allowable tax credits here.

3. Line 1 minus line 2 (not less than -0-) ................................................................................

3. ____

______

4a. Multiply line 3 by 90% (.90). If you did not file a 1998 return, enter the amount

from line 4a directly on line 4c . ..................................................................................... 4a. __________

4b. Enter 100% of the tax shown on your 1998 return (110% of the tax shown on your

1998 return if the adjusted gross income shown on that return is more than $150,000;

if married filing separately for 1999 , 110% of the tax shown on your 1998 return

if the adjusted gross income shown on that return is more than $75,000) ....................... 4b. __________

4c. Enter the smaller of line 4a or 4b. This is your required annual payment to

avoid interest ...................................................................................................................... 4c. _____

_____

5. Oregon income tax you expect withheld from your wages and/or pension in 1999 ......

5.<________ >

6. Annual payment. Line 4c minus line 5 ................................................................................

6. _______

___

7. Amount you owe on each payment date. See table below. Round to nearest dollar ......

7. ____

__.00__

If you first need to

Then fill in on line 7 of this

pay estimated tax on:

worksheet:

April 15, 1999

⁄4 of line 6 (make 4 payments)

June 15, 1999

⁄3 of line 6 (make 3 payments)

September 15, 1999

⁄2 of line 6 (make 2 payments)

January 18, 2000

All of line 6 (pay in full)

Which method to use/5

Instructions For Form 40es - Estimated Income Tax - 1999 Page 6

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