For estimated tax payments due for tax years beginning on or after January 1, 1988, in computing the required installment for the current year, the tax liability for the prior year may be used even though the current year is a single or separate return and the prior year's return is a joint return. The prior year's return must be filed timely including extensions and must cover 12 months. The prior year's tax will be allocated in the following manner:

1. (1) Recompute the prior year's tax liability as if each spouse had filed a single or separate return; and

2. (2) Multiply the joint tax liability for the prior year by a ratio of each spouse's single or separate liability to the combined single or separate liabilities.

   Example: Dan and Jessica filed a joint return for the calendar year 2008 showing taxable income of $63,000 and a tax after credits of $4,084. Of the $63,000 taxable income, $38,000 was attributable to Dan and $25,000 was attributable to Jessica. Dan and Jessica will file separate returns in 2009. The tax shown on the return for the preceding taxable year, for determining the required installments for 2009, is determined as follows: [Formula not included. See ED. NOTE.]

   [ED. NOTE: Formulas referenced are available from the agency.]

   [ED. NOTE: To view attachments referenced in rule text, click here for PDF copy.]

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 316.587

History

Renumbered from 150-316.587(8)-(B), REV 65-2016, f. 8-15-16, cert. ef. 9-1-16
REV 4-2009, f. & cert. ef. 7-31-09
RD 11-1988, f. 12-19-88, cert. ef. 12-31-88