If you file your Oregon return late, pay your tax after the due date, or do not pay enough tax throughout the year, Oregon may assess penalties and interest.
This section is used to report penalties and interest that apply to your return and to calculate any additional interest due for underpayment of estimated taxes.
Program Entry
Oregon Return → Penalties and Interest
Penalty and Interest for Filing or Paying Late
Enter any penalty and interest amount assessed by the Oregon Department of Revenue for filing your return after the due date or for paying tax after the due date.
This field is generally used when:
- Oregon has already notified you of a penalty or interest amount.
- You are filing an amended return and need to report an assessed amount.
- You have received correspondence from Oregon instructing you to include a specific penalty or interest amount.
Most taxpayers will leave this field blank unless they have received instructions from the Oregon Department of Revenue.
Interest on Underpayment of Estimated Tax - Form 10
What Is Form 10?
Oregon may charge interest when sufficient tax was not paid throughout the year through:
- Oregon withholding;
- Estimated tax payments; or
- A combination of withholding and estimated payments.
Generally, additional interest may apply if:
- The balance due is $1,000 or more; or
- Less than 90% of the current year's tax liability was paid during the year.
Select Begin to complete Oregon Form 10 and determine whether additional interest applies.
Form 10 Entries
Enter Your 2024 Oregon Tax
Enter the total Oregon tax from your 2024 Oregon return.
This amount is used to determine whether you qualify for one of Oregon's safe harbor exceptions and helps calculate whether sufficient tax was prepaid during the year.
Enter Your 2024 Refundable Tax Credit Amounts
Enter the refundable credits claimed on your 2024 Oregon return.
These credits are considered when determining the prior-year tax used for the Form 10 calculation.
Examples may include refundable Oregon credits claimed on the prior-year return.
Select an Exception to Paying the Additional Interest, If Applicable
Oregon provides certain exceptions that may eliminate or reduce the interest charged for underpayment of estimated tax.
If one of the listed exceptions applies to your situation, select it from the drop-down menu.
Examples may include situations where:
- The taxpayer qualifies for a safe harbor based on prior-year tax.
- The underpayment resulted from circumstances recognized under Oregon rules.
- Other exception criteria are met.
Only select an exception if you meet the requirements for that exception.
Annualized Installment Method Worksheet
To complete the Annualized Installment Method Worksheet, select Yes and complete the additional information requested.
This option is commonly used when income was earned unevenly throughout the year.
For example:
- Seasonal businesses
- Taxpayers who received most of their income near the end of the year
- Taxpayers with large bonuses, investment sales, or other income concentrated in specific periods
Using the Annualized Installment Method may reduce or eliminate underpayment interest by matching estimated tax requirements to when income was actually earned.
Select:
- Yes if you want to use the Annualized Installment Method and qualify to do so.
- No if your income was earned relatively evenly throughout the year or you do not wish to use the annualized calculation.
How Does This Affect My Return?
Amounts entered in this section may:
- Increase the total tax due on the return.
- Reduce a refund.
- Calculate interest due for underpaying estimated taxes.
- Determine whether an exception applies to reduce or eliminate underpayment interest.
Notes
- Most taxpayers will not need to manually enter a late-filing or late-payment penalty amount.
- Form 10 is used to calculate interest on underpayment of estimated tax, not late-filing penalties.
- The Annualized Installment Method may benefit taxpayers whose income was not earned evenly throughout the year.
- Keep records of estimated tax payments, withholding, and prior-year return information used to complete Form 10.
- Oregon interest for underpayment of estimated tax is separate from any penalties assessed for filing or paying late.