Instructions For Form 10 - Oregon Underpayment Of Estimated Tax

General information

able to use the prior year tax to determine your required

annual payment. See Part A instructions on this page.

Oregon law requires withholding or estimated tax payments

Exception 3—Retired or disabled AND have a reasonable

as income is earned. Interest is charged if you underpay or

cause for the underpayment.

are late. Use this form to determine if you owe underpay-

ment interest.

You meet this exception if:

For more information on who must pay estimated taxes, see

• There was reasonable cause for underpaying your esti-

Form 40 ESV instructions.

mated tax, AND

— You retired at age 62 or older during 2013 or 2014, or

Instructions

— You became disabled during 2013 or 2014.

These instructions are for lines not fully explained on the form.

Reasonable cause will be decided on a case-by-case basis.

The extent of your effort to comply with the law will be con-

Line 1—Claiming an exception

sidered. Attach a statement to your Oregon return explaining

the cause to be considered for the exception. Label the state-

If you qualify for one of the following exceptions, enter the

ment “Form 10 Attachment” at the top center of the page.

exception number on Form 40, line 51a; or Form 40N or Form

Exception 4—Underpayment due to unusual circumstances.

40P, line 69a; and on line 1 of your Form 10. Keep proof of

the exception with your tax records.

No interest is due if your underpayment is due to a casualty,

disaster, or other unusual circumstance. Unemployment

Exception 1—Farmers and commercial fishermen.

does not qualify as an unusual circumstance. Books and

If at least two-thirds (66.7 percent) of your 2013 or 2014 total

records that are destroyed by fire, flood, or other natural

gross income is from farming or fishing, you don’t have to

disaster may qualify as an unusual circumstance. Unusual

pay underpayment interest.

circumstances will be determined on a case-by-case basis.

The extent of your effort to comply with the law will be con-

Gross income includes items such as wages, interest, and

sidered. Attach a statement to your Oregon return explaining

dividends. It also includes gross income from rentals, royal-

the cause to be considered for the exception. Label the state-

ties, businesses, farming, fishing, and the sale of property.

ment “Form 10 Attachment” at the top center of the page.

When figuring gross income, subtract only the cost of goods

sold. When figuring gross income on the sale of property,

Exception 5—S corporation shareholders.

subtract only the adjusted basis or cost.

No interest is due on underpayment of S corporation income

Farmers. Use the amounts on the following lines of both

as a shareholder if:

your 2013 and 2014 federal income tax returns to determine

• The income is for the first year S corporation status is

your gross income from farming:

elected; and

• Federal Schedule F, line 9;

• You’re a nonresident for 2014; or

• Federal Schedule E, line 42;

• You were a part-year resident for 2013.

• Federal Form 4797, line 20. (Include only sales of livestock

held for drafting, breeding, dairy, or sporting purposes.)

Fishermen. Use the amounts on the following lines of both

PART A—Figure your required annual payment

your 2013 and 2014 federal income tax returns to determine

your gross income from fishing:

Line 2. Fill in your 2014 net income tax amount from Form

40, line 41; or Form 40N or 40P, line 58.

• Federal Schedule C, line 5;

Line 3. Fill in your total 2014 refundable tax credit amounts

• Federal Schedule C-EZ, line 1;

• Federal Schedule E, line 42.

from Form 40, lines 43a, 43b, and lines 44–46; or Form 40N

or 40P, lines 60a, 60b, and lines 62–64.

Exception 2—Prior year.

Line 6. Fill in only your Oregon income tax withheld from

You meet this exception if all of the following are true:

income. Don’t include any estimated tax payments.

• You were a full-year Oregon resident in 2013; and

Line 8. Enter your 2013 tax after all credits, Form 40, line 41

• Your net income tax for 2013 was -0- or you were not

minus the amounts claimed on line 43 for the wolf depreda-

required to file a return for 2013; and

tion and claim of right credits, minus lines 44–46; or Form

• Your tax year was a full 12 months.

40N or 40P, line 58 minus the amounts claimed on line 60

Your 2013 net income tax is your Oregon income tax after

for the wolf depredation credit and claim of right credit,

tax credits, including refundable tax credits, but before

minus lines 62–64. If your 2013 tax after credits is less than

withholding, estimated tax payments, or payments made

zero, enter -0-.

with an extension.

If you didn’t file a return for 2013, or your 2013 tax year was

Note: If you were a nonresident or a part-year resident in

less than 12 months, don’t complete line 8. Enter the amount

2013, you can’t use this exception. However, you may be

from line 5 on line 9. Note: If you were a part-year resident

150-101-031 (Rev. 12-14)

Instructions For Form 10 - Oregon Underpayment Of Estimated Tax - 2014 Page 2

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