OW-8-P: 2024 Form OW-8-P Underpayment of Estimated Tax Worksheet (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form OW-8-P is a worksheet for figuring underpayments of estimated tax and any interest due for 2024. It calculates required payments, compares them with withholding and estimated tax paid, and figures interest for each quarter.
Who files this form
Use Form OW-8-P to work out interest on an underpayment of Oklahoma estimated tax for 2024.
If you use the annualized income installment method, you must complete and include this worksheet with your return, along with the appropriate supplemental form.
The worksheet says you do not owe interest if any of these apply:
- Your Oklahoma tax liability on line 3 is less than $1,000.
- Your tax liability minus withholding on line 6 is less than $500.
- You were not required to file an income tax return for the previous tax year.
- Your withholding on line 5 equals or exceeds the required annual payment on line 8.
- Your payments on line 10c equal or exceed line 9 for every payment period.
When it's due
For tax year 2024, the worksheet prints these installment due dates:
- First quarter: April 15, 2024.
- Second quarter: June 15, 2024.
- Third quarter: September 15, 2024.
- Fourth quarter: January 15, 2025, the following year.
The Part 3 instructions say to adjust a preprinted date to the next business day if it falls on a weekend or holiday.
What you'll need
Have these items available to complete the worksheet:
- Your 2024 income tax return, including Oklahoma tax, refundable and nonrefundable credits, and withholding.
- Your previous year's income tax return showing tax liability. That return must cover 12 months.
- Estimated tax payment amounts and the dates you paid them.
- Any previous-year overpayment you elected to apply to 2024 estimated tax.
- Amounts and dates of other tax payments used in the interest calculation.
- Your name as shown on the return and your SSN or FEIN.
If you use the annualized method, also complete Form OW-8-P-SUP-I for individuals or Form OW-8-P-SUP-C for corporations, S corporations, exempt organizations, partnerships, and trusts. These forms are available at tax.ok.gov.
How to file
If you use the annualized income installment method, check the box in Section One and include Form OW-8-P and the appropriate supplemental form with your return.
Enter total interest from line 19 on your income tax return as well as on this worksheet.
The supplied form does not give a mailing address or e-file instructions.
Common mistakes
- Do not include estimated tax payments on line 5. That line is for withholding only.
- Enter estimated tax payments in the quarter when they were paid. Put any previous-year overpayment applied to this year's estimated tax in the first quarter.
- Do not put payments made after the fourth-quarter estimate due date on line 10 as estimated tax payments. Use them as prepayments in the Part 3 calculation.
- Complete lines 11 through 17 for one column before moving to the next column.
- In Part 3, complete each quarter before moving to the next. Bring its Column C balance to zero unless all payments have already been applied.
- Do not reuse payments already applied to an earlier quarter. Use only the portion needed to bring the balance due to zero.
- If you need more payment lines, list each payment separately on an attached schedule using Columns A through E.
Questions people ask
Can the annualized method help if my income varied during the year?
Yes. The form says this method may lower or eliminate one or more required installments if your income varied, for example because you operated a seasonal business.
How is the required annual payment calculated?
Line 8 uses the smaller of 70% of your current-year Oklahoma tax liability on line 3 or the tax liability shown on your previous year's return. The previous year's return must cover 12 months.
How is withholding assigned to the payment periods?
You are considered to have paid one-fourth of your withholding on each payment due date unless you can show otherwise.
How does Part 3 calculate interest?
For each line, multiply the Column C balance by the number of days in Column D and by 20%, then divide by 365. Transfer each quarter's interest to line 18 and add the quarters on line 19.
Does a payment made with my tax return count?
Yes. Part 3 treats a balance paid with your return as a payment. List it using the date you filed your return or the original due date, whichever is earlier.