Instructions For Form 40es - Estimated Income Tax

Form 40S, you can’t apply your income tax refund to

are paying jointly. Don’t staple your check to the

your estimated tax payments.

Form 40ES.

Note: We can’t apply refunds of less than $5 to your

Note: Don’t send your 1999 Form 40ES and payment

estimated tax payments.

with your 1998 income tax return. Send them in sepa-

rate envelopes.

Filing joint payments

Mail your estimated tax payment and coupon to:

You may file a joint estimated tax Form 40ES unless:

Oregon Department of Revenue

PO Box 14950

• You or your spouse are nonresident aliens, or

Salem OR 97309-0980

• You are legally separated, or

• You and your spouse have different tax years. For

Your Form 40ES with payment must be postmarked by

example, you use a calendar year and your spouse uses

the due date to be considered timely.

a fiscal year.

Keep records

If you file a joint estimated tax Form 40ES, the payment

is considered to be joint, regardless of which spouse

On the Form 40ES stub fill in:

actually sent in the money.

1. Amount of payment due. That’s the amount of 1999

Filing separate payments

estimated tax you figured using Method 1, 2, or 3.

2. Amount of your 1998 Oregon income tax refund

If you received joint personalized payment coupons but

you’re applying to this payment. The total refund

want to make payments under your name only, cross out

can’t be more than the amount shown on your tax

your spouse’s name and Social Security number.

return and your refund can’t be less than $5. Gener-

You may file separate 1999 Oregon income tax returns

ally, your 1998 refund will be applied only to your

even if you file a joint Form 40ES. If you file separate

first quarter payment.

income tax returns after filing a joint Form 40ES,

3. Your payment. Subtract box 2 from box 1. This is

you and your spouse should decide who will claim the

the amount of your check for this payment date.

estimated tax jointly paid. You may divide the estimated

4. Total paid to date. 1999 estimated tax payments

tax between you, or agree that one of you will claim the

(from box 3 of each payment stub to date) plus

entire amount. If you and your spouse can’t agree, your

total refund amounts applied (box 2 of each payment

estimated tax generally will be divided based on your

stub to date).

separate tax liabilities.

5. Date mailed.

Note: If you expect to file separate tax returns, using

Keep this stub for your records.

separate estimated tax accounts will speed processing of

your returns.

Interest on underpayment of

Late payments

estimated tax

If you pay late, you may owe interest for late payment

You will have an underpayment for 1999 if you pay less

when you file your 1999 Oregon income tax return. See

than:

“Interest on underpayment of estimated tax,” on this

• 90 percent of the tax to be shown on your 1999

page.

income tax return (at least one-fourth on each payment

If you underpaid in an earlier payment period, pay the

due date), or

difference now to reduce interest charges. Don’t wait

• 100 percent of the tax shown on your 1998 income

until the next payment due date. We apply payments first

tax return (at least one-fourth on each payment due

to underpayments from earlier periods.

date) (see Caution on page 1), or

Example: The June 15 payment is first applied to any

• 90 percent of the tax figured on your 1999 annualized

underpayment for the first payment period. The balance

income.

of the June payment is then applied to the second pay-

You will be charged interest on the underpayment. To

ment period.

figure the amount of interest, complete Form 10,

Interest is charged until the underpayment is paid or until

“Underpayment of Oregon Estimated Tax.” File Form 10

April 17, 2000, whichever comes first.

with your 1999 Oregon income tax return. Pay the

interest when you file your 1999 Oregon income tax

Note: We can’t refund any estimated payments until you

return.

file your 1999 income tax return.

To get Form 10 and instructions, see page 8.

Enclose payment. Make your check payable to

Oregon Department of Revenue. Write your Social

The current annual interest rate is 9 percent. The inter-

Security number and “1999 Form 40ES” on your check.

est rate may change once a calendar year. Any change

Do not send cash or postdated checks. Also, write your

to the rate is effective for interest periods beginning on

spouse’s Social Security number on your check if you

or after January 1 of the following year.

How to make late payments/7

Instructions For Form 40es - Estimated Income Tax - 1999 Page 8

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