Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0470 - Allocation of Joint Estimated Tax Payments

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Spouses in a marriage may make joint
			 estimated tax payments for any part of the tax year although they may elect to
			 file separate tax returns. If separate returns are filed the joint estimated
			 tax payments may be treated as the estimated tax of either the husband or wife
			 or may be divided between the spouses in such manner as they agree.
(2) If the spouses do not agree on how to
			 divide their joint estimated tax payments, the payments shall be allocated
			 between them by the department. Spouses will be considered not to have agreed
			 on a method for dividing their joint estimated payments when both spouses file
			 separate returns claiming credit for estimated tax payments which when combined
			 do not equal the amount of joint estimated tax payments received by the
			 department during the tax year.
(3)
			 The department shall divide the joint estimated tax payments by allocating to
			 each spouse an amount of the payments in the proportion that the spouses'
			 separate tax liability computed after credits, other than the credits for
			 withholding and estimated tax payments, bears to the combined separate tax
			 liabilities of both spouses.
The formula to be used is:
Separate tax liability
- (divided by) -
(Combined separate tax liabilities x joint estimated tax
				payments)
During 20XX, Adam and Betty make joint estimated tax payments
				of $2,000, Betty also has tax withholding of $1,000. Adam and Betty decide to
				file separate returns for 20XX but fail to agree on how to divide their 20XX
				joint estimated tax payments. Adam has a separate tax liability after credits
				of $1,500. Betty has a separate tax liability of $1,100 before credit for
				withholding of $1,000. Using the formula stated above, Adam's share of the
				estimated tax payments is $1,154 ($1,500 ÷ $2,600 x $2,000). Betty's
				share of the estimated tax payments is $846 ($1,100 ÷ $2,600 x $2,000).
				Adam will owe a net amount of $346 ($1,154 - $1,500) and Betty will receive a
				refund of $746 ($846 + $1,000 - $1,100).
(4) If spouses in a marriage make joint
			 estimated tax payments and the department issues a notice of assessment against
			 either or both of the spouses under the provisions of ORS
			 305.265(10),
			 the department shall allocate the estimated tax payments between the spouses.
			 The allocation of payments shall be made using the best information available
			 to the department.
(5) In the event
			 one of the spouses received credit for more than their allocable share of the
			 joint estimated tax payments as determined by the department, the difference
			 between their allocable share and the amount for which credit was received when
			 the return was processed, shall be remitted to the department. This amount
			 shall be remitted with the filing of an amended return or through payment of a
			 notice of deficiency issued by the department.
Formulas referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.567