Why do i owe oregon state taxes

A: If you under-withhold, there won't be enough put aside to cover the taxes you owe when you file your return. A: Some employees are over-withheld on their taxes, meaning that they'll pay more in tax during the year than what they'll owe when they file their returns. They might receive a large refund when they file their return, but they'll have less money in each paycheck throughout the year.

If your taxes are over-withheld, use the withholding calculator to find the right number of allowances that will leave you with more money in each paycheck, while still making sure that enough is withheld to cover your tax when you file your return. A: Taxpayers who need to change the amount of tax withheld from their paychecks need to complete Form OR-W-4 and give it to their employer.

Use the worksheets that come with the form or, for more accurate results, use the withholding calculator to help you complete the form. However, you can also get the form and instructions from our website, or you can contact us and we'll send you a copy. A: Your employer is only required to withhold tax from your pay and submit it to us.

It's up to you to specify how much Oregon tax they should withhold. If you don't specify your withholding for Oregon, they have to withhold at a flat rate of eight percent. This may not be enough withholding to cover the taxes you owe. The more information you fill out, the more accurate your withholding will be. A: No. You only give the first part of the form—the part that you sign—to your employer. Keep the worksheets for your own records. A: You should check your withholding whenever your personal or financial situation changes because those can impact your tax liability.

Earlier in the year is better than later, since withholding takes place throughout the year. Waiting until later in the year means there are fewer pay periods to make changes, which could have a bigger impact on each paycheck. A: The withholding calculator looks at your situation as of the day you use it. If you've started a new job during the year, or you're checking your current withholding arrangement, the calculator will make recommendations for your withholding for the rest of the year.

It will also recommend what you should do next year if your personal or financial situation doesn't change. The withholding calculator doesn't store your personal or financial information. It doesn't ask for your name or other identifying information, either. A: It's a taxpayer's responsibility to check their withholding and determine if it's accurate for their personal situation.

Payroll offices and human resource departments are responsible only for processing the Form OR-W It's important to remember people working in these offices do not know the rest of someone's personal financial situation, and they are not responsible for giving you tax advice.

Employees who have tax questions should consult with a trusted tax professional. If you have questions about the withholding calculator or Form OR-W-4, contact us. A: We use this information to determine your child tax credit on the federal return. This goes into the calculation to determine your federal tax subtraction on the Oregon return. Enter the wages that you'll be reporting when you file your return.

The calculator will use the starting and ending dates to figure out how much the job pays for the year. A: It is really important that you enter each job separately because the withholding calculation will be off if you combine all the jobs.

This is because each employer uses the same basic withholding formula, which treats each job as if it's the only income you have. The formula includes the standard deduction and an estimate of the federal tax subtraction you'll claim on your return. It also applies the tax rates that would apply if you only had one job. The calculator needs to know how many times these deductions and tax rates will be applied by your employers.

That way, it can figure all of that in when it makes its recommendation. A: No, the calculator assumes you will have the job for the same length of time in If your personal or financial situation changes for for example, your job starts in summer and continues for all of , or your part-time job becomes full-time , you are encouraged to come back in early and use the calculator again.

A: You can enter these separately or enter just your net wages, but don't do both. If you enter them separately, the calculator will figure out the net wages for you. A: The calculator figures out your withholding based on your annual wages, including the amount you're paid each pay period and any bonuses.

First, it figures out your net wages for the year based on starting and ending dates you enter, as well as how often you're paid.

Then it adds any bonus amounts you'll receive and uses that total to figure out how much you should have withheld for the year. A: The calculator uses your filing status, number of allowances, and amount withheld to date to determine how much would be withheld for the entire year if you didn't change anything. Because some taxpayers change their allowances during the year, having this information allows the calculator to figure out how much needs to be withheld for the rest of the year.

A: Enter the amount you'll include on your federal return as "other income" and enter the same amount again as an Oregon subtraction. A: Form OR-W-4 uses only some of your personal and financial information and is a rough estimate. The calculator is more accurate and takes everything in your situation into account.

A: The results for factor in taxes you've already had withheld for this year. If your withholding wasn't correct, the results will tell you what to claim for the rest of the year to get back on track. The recommendation for assumes that your financial and personal situations will be the same as , but it doesn't factor in any taxes that were already withheld. A: No, the refund amount on the calculator is a refund of withheld tax only.

Refundable credits are included in the calculation only to the point where your tax liability would be zero and any withheld tax would be refunded to you. If you owe taxes and don't file a return and pay the taxes you owe, the government can charge you penalties and interest. Even if you earned less than these amounts, it may be to your benefit to file a tax return. You may be entitled to a refund of some or all of the money your employers withheld from your pay.

The amount withheld depends upon your income and family size. When you start a new job, your employer will ask you to fill out a tax form called a W-4 form, and will base your withholding on the information you put on the W-4 form.

If you received a refund of all the income tax withheld from your pay last year, and you expect to receive a full refund this year, you can write the word "EXEMPT" on your W-4 form and your employer will not withhold federal taxes from your pay.

Putting wrong information on the W-4 form can mean that you will have to pay more when it is time to file your taxes, and may cause further penalties. You may also be entitled to the Earned Income Credit. The amount of the credit changes every year, and it depends upon your income and your family size. The EIC is a fully refundable tax credit. This means that if you owe taxes, the EIC will reduce the amount of taxes that you owe.

To qualify for the EIC, your children must live with you at least six months of the year. They must also have valid Social Security numbers. If you live with your spouse, he or she must also have a valid Social Security number in order for your family to receive the EIC. These requirements are different than those of other tax credits like the Dependent Exemption and the Child Tax Credit. Note: If one of these family members does not yet have a valid Social Security number, but is in the process of legalizing and will get a valid number in the future, you cannot get the EIC now.

Mail a check or money order with your return. Payment is coordinated through your financial institution and they may charge a fee for this service. Combined Payroll. Choose to pay directly from your bank account or by credit card. Service provider fees may apply. Electronic payment from your checking or savings account through the Oregon Tax Payment System. ACH Credit. Corporate Activity Tax.

Corporate Income and Excise. Emergency Communications E Hazardous Substance Fee. Mail a check or money order with your payment coupon. Lane Self-employment.