diff --git a/src/services/formatting/formatting.ts b/src/services/formatting/formatting.ts
index 967015a88c1..8b60952d4f6 100644
--- a/src/services/formatting/formatting.ts
+++ b/src/services/formatting/formatting.ts
@@ -581,7 +581,7 @@ namespace ts.formatting {
                     && !(node.decorators && kind === getFirstNonDecoratorTokenOfNode(node));
             }
 
-            function getDelta(child: TextRangeWithKind) {
+            function getDelta(child: Node) {
                 // Delta value should be zero when the node explicitly prevents indentation of the child node
                 return SmartIndenter.nodeWillIndentChild(node, child, /*indentByDefault*/ true) ? delta : 0;
             }
diff --git a/src/services/formatting/smartIndenter.ts b/src/services/formatting/smartIndenter.ts
index 7904db0969f..23256b6b754 100644
--- a/src/services/formatting/smartIndenter.ts
+++ b/src/services/formatting/smartIndenter.ts
@@ -531,9 +531,23 @@ namespace ts.formatting {
             return false;
         }
 
-        export function nodeWillIndentChild(parent: TextRangeWithKind, child: TextRangeWithKind | undefined, indentByDefault: boolean): boolean {
+        export function nodeWillIndentChild(parent: TextRangeWithKind, child: Node | undefined, indentByDefault: boolean): boolean {
             const childKind = child ? child.kind : SyntaxKind.Unknown;
+
             switch (parent.kind) {
+                case SyntaxKind.VariableDeclaration:
+                case SyntaxKind.PropertyAssignment:
+                case SyntaxKind.ObjectLiteralExpression:
+                    if (childKind === SyntaxKind.ObjectLiteralExpression) {
+                        const sourceFile = child.getSourceFile();
+                        if (sourceFile) {
+                            // May not be defined for synthesized nodes.
+                            const startLine = sourceFile.getLineAndCharacterOfPosition(child.getStart()).line;
+                            const endLine = sourceFile.getLineAndCharacterOfPosition(child.getEnd()).line;
+                            return startLine === endLine;
+                        }
+                    }
+                    break;
                 case SyntaxKind.DoStatement:
                 case SyntaxKind.WhileStatement:
                 case SyntaxKind.ForInStatement:
@@ -585,7 +599,7 @@ namespace ts.formatting {
          * True when the parent node should indent the given child by an explicit rule.
          * @param isNextChild If true, we are judging indent of a hypothetical child *after* this one, not the current child.
          */
-        export function shouldIndentChildNode(parent: TextRangeWithKind, child?: TextRangeWithKind, isNextChild = false): boolean {
+        export function shouldIndentChildNode(parent: TextRangeWithKind, child?: Node, isNextChild = false): boolean {
             return (nodeContentIsAlwaysIndented(parent.kind) || nodeWillIndentChild(parent, child, /*indentByDefault*/ false))
                 && !(isNextChild && child && isControlFlowEndingStatement(child.kind, parent));
         }
diff --git a/tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewline.ts b/tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewline.ts
new file mode 100644
index 00000000000..8cf96593721
--- /dev/null
+++ b/tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewline.ts
@@ -0,0 +1,24 @@
+/// <reference path='fourslash.ts' />
+
+//// 
+//// var clear =
+//// {
+////     outerKey:
+////     {
+////         innerKey: 1
+////     }
+//// };
+//// 
+
+format.document();
+verify.currentFileContentIs(
+`
+var clear =
+{
+    outerKey:
+    {
+        innerKey: 1
+    }
+};
+`
+);
\ No newline at end of file
diff --git a/tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewlineTyping.ts b/tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewlineTyping.ts
new file mode 100644
index 00000000000..ba21c91dba9
--- /dev/null
+++ b/tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewlineTyping.ts
@@ -0,0 +1,36 @@
+/// <reference path='fourslash.ts' />
+
+//// 
+//// var varName =/**/
+//// 
+
+goTo.marker();
+edit.insert("\n{");
+verify.currentFileContentIs(
+`
+var varName =
+    {
+`
+);
+
+edit.insert("\na: 1");
+format.document();
+verify.currentFileContentIs(
+`
+var varName =
+{
+    a: 1
+`
+);
+
+edit.insert("\n};");
+
+format.document();
+verify.currentFileContentIs(
+`
+var varName =
+{
+    a: 1
+};
+`
+);
\ No newline at end of file