OR-ESTIMATE: Publication OR-Estimate, Estimated Income Tax Instructions (2024)

Who files this form

Publication OR-ESTIMATE explains how to calculate and pay Oregon estimated income tax for 2024.

In most cases, you must make estimated payments if:

• You expect to owe $1,000 or more after withholding and all credits, including refundable credits; and
• Your expected 2024 withholding is less than the applicable payment amount based on 90% of your 2024 tax after credits, 100% of your 2023 tax after credits, or 90% of the tax on your 2024 annualized income.

Special rules include:

• Nonresidents: Estimate tax only on Oregon-source income.
• Part-year residents: Include all income during your Oregon residency and Oregon-source income for the rest of the year.
• Retirees: You may need estimated payments or Oregon withholding from retirement income.
• Estates and trusts: Oregon estimated tax payments are not required.
• Farmers and commercial fishermen: Payments are not required if farming or fishing income, including oyster farming, was at least two-thirds of your 2023 gross income or will be at least two-thirds of your estimated 2024 gross income.

You may make estimated payments even if your expected tax after credits is less than $1,000.

When it's due

Regular payments for tax year 2024

For calendar-year filers, the regular installment schedule lists:

• First: April 15, 2024.
• Second: June 17, 2024.
• Third: September 16, 2024.
• Fourth: January 15, 2025.

You may pay all your 2024 estimated tax by the first installment deadline or pay four equal installments. If a due date falls on a Saturday, Sunday, or Oregon legal holiday, payment is due the next business day.

For fiscal-year filers, the 2024 publication lists the 15th day of the fourth, sixth, and ninth months, followed by 15 days after the last day of the tax year.

Income that starts or changes during 2024

The publication's separate calendar-year chart prints these dates:

• After April 1 and before June 2: Three installments, due June 15, 2024; September 15, 2024; and January 16, 2025.
• After June 1 and before September 2: Two installments, due September 15, 2024, and January 16, 2025.
• After September 1: One installment, due January 16, 2025.

The printed dates are inconsistent. The income-change chart differs from the regular schedule, and Example 3 gives April 18, 2024, for a full-year payment. These are the dates as printed. Contact the Oregon Department of Revenue at 503-378-4988 or 800-356-4222 for help resolving the discrepancy.

For mailed payments, the envelope must be postmarked by the payment due date.

What you'll need

To calculate your 2024 estimated payments, have:

• Your 2023 Oregon return and instructions.
• Your 2023 federal return, including all schedules and instructions.
• The Oregon estimated tax worksheet in this publication.
• The publication's 2024 Oregon tax rate charts and indexed figures.
• The Annualized Income Worksheet in Form OR-10 Instructions, if you will annualize your income.

For a check or money order payment, use Form OR-40-V. You will also need the last four digits of your SSN or ITIN to write on the payment.

Keep the estimated tax worksheet with your records. If you use the reduced rate for qualified business income, the farm capital gain rate, or farm income averaging, keep a record showing how you calculated the tax.

How to file

Calculate your payment

Use the estimated tax worksheet to calculate your required annual payment. Under the regular method, this is the smaller of:

• 90% of your 2024 tax after all credits; or
• 100% of your 2023 tax after all credits.

Subtract your expected 2024 Oregon withholding to calculate your annual estimated payment. If your income is uneven during the year, use the Annualized Income Worksheet in Form OR-10 Instructions to calculate installments.

Pay electronically

Visit Revenue Online at www.oregon.gov/dor. You can pay directly from a checking or savings account or use a debit or credit card. Card payments may carry a convenience fee.

Pay by mail

1. Complete Form OR-40-V using blue or black ink and mark the “Estimated payment” box.
2. Make your check or money order payable to “Oregon Department of Revenue.”
3. Write “2024 OR-40-V” and the last four digits of your SSN or ITIN on the payment.
4. Enclose the payment and voucher together, without stapling them. Mail them separately from your return or other correspondence to:

Oregon Department of Revenue

PO Box 14950

Salem OR 97309-0950

Pay cash in person

Cash payments are accepted only at the main office at 955 Center Street NE in Salem. Bring your personalized voucher, or the department can create one for you. Field offices do not accept cash.

PTE payments for nonresident owners

A pass-through entity uses Form OR-OC-V for nonresident owners joining a composite filing. For other nonresident owners whose PTE income is subject to withholding, use Form OR-19-V, unless the owner has submitted a Form OR-19-AF affidavit.

Common mistakes

• Treating estimated payments as a substitute for withholding. If too little tax is withheld, ask your employer or payer to increase Oregon withholding using Form OR-W-4.
• Sending an incorrect mail payment. Use Form OR-40-V only for a check or money order, mark the “Estimated payment” box, and use blue or black ink. Do not mail cash or postdated checks.
• Stapling the voucher to the payment or mailing it with your return. Enclose them without staples and send them separately from your return or other correspondence.
• Overlooking incorrect voucher details. Check personalized vouchers. If making separate payments with a joint voucher, cross out your spouse's name and SSN in blue or black ink.
• Failing to report a name or address change separately. Send a change of address/name form. Address changes can also be reported through Revenue Online.
• Making joint payments when they are not allowed. Do not make joint payments if either spouse is a nonresident alien, you are legally separated, or you have different tax years.
• Waiting to fix an underpayment. Pay a missed amount as soon as possible rather than waiting for the next installment deadline to reduce potential interest charges.
• Counting on a refund that is used to pay debt. A refund offset against tax or other debt reduces the amount available to apply as an estimated payment.

Questions people ask

Can I base my 2024 payments on my 2023 tax?

Yes. The safe harbor method uses 100% of your 2023 tax after all credits. You must file your 2023 return before your 2024 return. The 2023 return cannot be a short-year return, but it may be a part-year return.

What if my income changes after I have already paid an installment?

Recalculate your estimated tax for the entire year. Subtract the estimated tax already paid, including applied refunds, then divide the unpaid amount by the number of remaining installments. The publication includes an amended installment payment worksheet.

Can I apply a prior-year refund to estimated tax?

Yes. You may choose to apply some or all of an overpayment to a later tax year as an estimated payment. Any refund used to pay tax or other debt reduces the amount applied.

Can my spouse and I make joint estimated payments?

Yes, if you plan to file a joint 2024 return and none of the joint-payment restrictions applies. If you later file separately, agree on how to divide the payments and notify the department. Without an agreement or notice, the department divides the payments based on your separate tax liabilities.

What happens if an installment is late?

You may owe interest when you file your 2024 return. Estimated payments are applied to unpaid earlier installments before later periods. Underpayment interest is reported on Form OR-10.

Official sources

• https://www.oregon.gov/dor/forms/FormsPubs/publication-or-estimate_101-026_2024.pdf