(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.
Notes
Or. Admin. R.
150-316-0470
RD 12-1985,
f. 12-16-85, cert. ef. 12-31-85; RD 15-1987, f. 12-10-87, cert. ef. 12-31-87;
RD 6-1996, f. 12-23-96, cert. ef. 12-31-96; Renumbered from 150-316.567,
REV
65-2016, f. 8-15-16, cert. ef.
9/1/2016;
REV
3-2017, f. 5-31-17, cert. ef.
6/1/2017
Formulas referenced are available from the
agency.
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
316.567
