Cannot annualize Oregon withholding to avoid unowed underpayment interest

For computing the underpayment penalty Oregon says "Withholding is treated as if it were paid
in equal amounts on the due date for each required installment payment unless you can show that it was paid differently. " I can show that it was paid once, early in the year. How can I get TurboTax to generate the OR Form 10: Underpayment Statement to show unequal withholding?

This question was answered in 2023 but the proposed method is not working. I cannot directly modify the Underpayment Statement in Forms and, unlike the federal section, the Oregon section of EasyStep does not appear to provide a method to annualize withholding.

277

Employee Tax Expert

Feb 17, 2026 4:36:56 PM

Near the end of your state interview, TurboTax should realize that you owe state tax. Are you sure that you owe Oregon more than $1,000? If you owe less, then the whole underpayment process won't appear.

If, by this point, you owe Oregon more than $1,000, on the screen "A few things before we wrap up your state taxes", look at subheading, "Other situations". Go down to "Underpayment Interest (Form 10)". Going through this sub interview while allow you to make the entries that you want.

If you don't see this entry to Underpayment Interest, then something about your return is blocking it.

For example,

1. Is your OR tax due less than $1,000?

2. Was the OR tax paid in 2024 greater than the tax due in 2025?

3. On the screen for "Underpayment of Estimated Tax Exceptions", you clicked on one of the exceptions to owing any underpayment penalty.

Returning Member

Feb 17, 2026 4:59:41 PM

Thanks for the quick response. Yes, I owe more than $1000 and did complete the Underpayment Interest (Form 10) section. When I select the annualized income method, the following screen allows me to annualize my income but not my withholding.

Returning Member

Feb 17, 2026 5:05:16 PM

When I complete the Underpayment Interest (Form 10) section, TurboTax creates the Underpayment Statement form below showing the withholding evenly distributed across all 4 quarters even though all $933 was withheld in the first quarter. This results in underpayment interest I do not owe so I would like to know if I can force TurboTax to list all my withholding in the first quarter where it occurred. There are extra questions in the Federal interview that allow this but not in the Oregon interview and I cannot force the change directly in Forms.

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Returning Member

Feb 17, 2026 5:08:22 PM

I'm not sure why the Underpayment Statement image is not displaying so trying again.

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Cannot annualize Oregon withholding to avoid unowed underpayment interest