Oklahoma Form Help

The following information has been provided to assist in the preparation of Oklahoma state tax returns.

 

Form 511

File Form 511 if any of the following apply:

Resident:

Every OK resident who has sufficient gross income to require them to file a Federal return is required to file an OK return, regardless of the source of income. An OK return is not required to be filed if the Federal filing requirement is not met, no OK tax was withheld and no OK estimated tax payments were made.

 

Part-Year Resident:

Every part-year resident, during the period of residency, has the same filing requirements as a resident. During the period of nonresidency, an OK return is also required is the OK part- year resident has gross income from OK sources of $1,000 or more. Use Form 511NR.

 

Nonresident:

Every nonresident with gross income from OK sources of $1,000 or more is required to file an OK return. Use Form 511NR.

 

Filing Status:

The filing status for OK purposes is the same as on the Federal return, with one exception. This exception applies to married taxpayers who file a joint Federal return where one spouse is an OK resident (either civilian or military), and the other is a nonresident civilian (non-military). In this case, the taxpayers must either:

 

1. File as OK married filing separate. The OK resident, filing a joint Federal return with a nonresident civilian spouse, may file the OK return as married filing separate. The resident will file on Form 511 using the married filing separate rates and reporting only their income and deductions. If the nonresident civilian also has an OK filing requirement, they will file on Form 511NR, using married filing separate rates and reporting only their income and deductions. Form 574 "Allocation of Income and Deductions" must be filed with the return.

 

 Or,

 

2. File, as if both the resident and the nonresident civilian were OK residents, on Form 511. Use the "married filing joint" filing status, and report ALL income. A tax credit (Form 511TX) may be used to claim credit for taxes paid to another state, if applicable. A statement should be attached to the return stating the nonresident is filing as a resident for tax purposes only.

 

If an OK resident (either civilian or military) files a joint Federal return with a nonresident military spouse, they shall use the same filing status as on the Federal return. If they file a joint Federal return, they shall complete Form 511NR and include in the OK amount column, all OK source income of both the resident and the nonresident.

 

Not Required to File:

An OK resident who does not meet the Federal filing requirement, but who has OK tax withheld or made estimated tax payments should complete Form 511 as follows:

1. Complete the top portion of Form 511, as usual.

2. Check the "Not Required to File" box.

3. Complete line 1. Enter the amount of gross income subject to the Federal filing requirement instead of entering the Federal adjusted gross income.

4. Complete lines 20 through 44 that are applicable. If you qualify for the Federal earned income credit, you qualify for the Oklahoma earned income credit. Enter 5% of the Federal earned income credit on Form 511, line 28 (do not complete Schedule 511-F).

5. Sign and mail Form 511, pages 1 and 2 only.

 

Line 4 - Out-of-State Income:

This is income from real or tangible personal property or business income in another state. This includes partnership and Subchapter S Corporation gains attributable to other states. It is not interest, installment sale interest, dividends, salary/wages, pensions or income from personal services.

 

Line 10 - Deductions:

Complete this line unless you have out of state income (Form 511, line 4). If you have out-of-state income, complete Form 511, Schedule D instead of line 10.

 

Enter the OK standard deduction if you did not claim itemized deductions on your Federal return.

 

If you claimed itemized deductions on your Federal return, enter the amount of your allowable itemized deductions.

 

Line 11 - Exemptions:

Complete this line unless you have out of state income (Form 511, line 4). If you have out-of-state income, complete Form 511, Schedule D instead of line 11.

 

Oklahoma allows $1,000 for each exemption claimed on the OK return.

 

Line 12 - Total Deductions and Exemptions:

Add Form 511, lines 10-11 and enter the total on line 12, or enter the total from Form 511, Schedule D, line 5.

 

Line 14 - Oklahoma Income Tax:

The tax comes from the Tax Table unless Form 573 “Farm Income Averaging” was used. If Form 573 was used, enter the amount from Form 573, line 22, and enter a “1” in the box.

 

Amounts withdrawn from a Health Savings Account for any purpose other than those described in Title 36 O.S. Section 6060.17 and which are included in your Federal adjusted gross income are subject to an additional 10% tax. Add the additional 10% tax to your tax from the tax table* and enter a “2” in the box.

 

* If you also used Form 573, add the 10% tax to the tax from Form 573, line 22.

 

Line 15 - Child Care/Child Tax Credit:

Complete line 15 unless your OK adjusted gross income (Form 511, line 7) is less than your Federal adjusted gross income (Form 511, line 1). If OK adjusted gross income is less than your Federal adjusted gross income, complete Form 511, Schedule E to determine the amount to enter on line 15.

 

If your Federal Adjusted Gross Income is $100,000 or less and you are allowed either a credit for child care expenses or the child tax credit on your Federal return, you are allowed a credit against your Oklahoma tax.  Your Oklahoma credit is the greater of:

 

Or

 

If your Federal AGI is greater than $100,000 no credit is allowed.

 

Line 20 - Oklahoma Use Tax:

Every state with a sales tax has a companion tax for purchases made outside the state. In Oklahoma, that tax is called "use tax". If you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax, you owe Oklahoma use tax on those items. Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. Individuals in Oklahoma are responsible for paying use tax on their out-of-state purchases.

 

Use tax in Oklahoma is not a new tax. It was first enacted in 1937. Inclusion of use tax on the income tax return is being done to help increase awareness of and compliance with use tax.

 

When purchased from an out-of-state retailer, whether by mail order, catalog, television shopping networks, radio, Internet, phone or in person, all items that would be subject to sales tax if purchased in Oklahoma are subject to use tax. Items that are subject to sales tax include books, compact discs, computer equipment, computer software, electronics, clothing, appliances, furniture and other home furnishings, sporting goods and jewelry. When an out-of-state retailer does not collect Oklahoma sales tax, the responsibility of paying the tax falls on the purchaser.

 

Use tax is calculated at the same rate as sales tax; which varies by city and county. The state sales tax rate is 4.5% (.045) plus the applicable city and/or county rates.

 

Complete Worksheet One if you kept records of all of your out-of-state purchases. Complete Worksheet Two if you did not keep records of all of your out-of-state purchases.

 

Worksheet 2 has two parts; the first part is a calculation of the amount due on items that cost less than $1,000 each and the second part is a calculation of the amount due on items that cost $1,000 or more each. The first calculation is based on a Use Tax Table that reflects the estimated amount of use tax due by taxpayers with varying amounts of Federal Adjusted Gross Income. The estimated amount is 0.056% (.00056) of Federal adjusted gross income. If you believe that estimate from the table is too high for your out-of-state purchases, you may estimate what you think you owe.

 

If you paid another state's sales or use tax on any purchase, that amount may be credited against the

Oklahoma use tax due on that purchase.

 

Line 25 - Credit for Property Tax Relief:

Any person 65 years of age or older or any totally disabled person who is head of a household, a resident of and domiciled in this state during the entire preceding calendar year, and whose gross household income for such year does not exceed $12,000, may file a claim for property tax relief on the amount of property taxes paid on the household occupied by such person during the preceding calendar year. The credit may not exceed $200. Claim must be made on Form 538-H.

 

Line 26 - Sales Tax Relief/Credit:

To file for sales tax relief, you must be an OK resident and live in OK for the entire year. Your total gross household income cannot exceed $20,000 unless one of the following applies:

   - You claim an exemption for your dependent, or

   - Your are age 65 or older by the end of the year, or

   - You have a physical disability constituting a substantial handicap to employment.

If any one of the above three items pertain to you, your total gross household income limit is increased to $50,000.

 

If you are claiming the sales tax relief credit against your tax, your return must be filed by April 15th. No extensions are allowed.

 

Line 27 – Natural Disaster Credit:

This credit is for owners of residential real property whose primary residence was damaged or destroyed in a natural disaster for which a Presidential Major Disaster Declaration was issued, unless the natural disaster was a tornado occurring in calendar year 2012 or 2013 in which case a Presidential Major Disaster Declaration is not required. The primary residence must be repaired or rebuilt and used as the primary residence not later than December 31, 2015, with respect to the calendar year 2102 or 2013 natural disaster and no later than 36 months after any natural disaster occurring on or after January 1, 2014. To claim this credit, Form 576 must be enclosed with return.

 

 

Form 511NR

File Form 511NR if any of the following apply:

 

Part-Year Resident:

Every part-year resident, during the period of residency, has the same filing requirements as a resident. During the period of nonresidency, an OK return is also required is the OK part- year resident has gross income from OK sources of $1,000 or more.

 

Nonresident:

Every nonresident with gross income from OK sources of $1,000 or more is required to file an OK return.

 

Not Required to File:

Nonresident and part-year residents who do not have an OK filing requirement but have OK tax withheld or made estimated tax payments should complete Form 511NR as follows:

1. Complete the top portion of Form 511NR, as usual and check the "Not Required to File" box.

2. If you are a nonresident or part-year resident who is not required to file because your gross OK source income is less than $1,000, complete Schedule 511NR, lines 1 - 19 of the Federal column as per your Federal return. In the OK amount column, enter your gross income from OK sources and not the net income as would be reflected in your Federal AGI.

   Or

   If you are a part-year resident who is not required to file because your Federal gross income was not sufficient to meet the Federal filing requirement, complete Schedule 511NR, lines 1- 19 entering the amount of your gross income subject to the Federal filing requirement. Do not enter anything in the OK amount column.

 

3. Complete lines 24 through 45 that are applicable. Sign and mail Form 511NR, pages 1 -3 only.

 

Line 11 - Deductions:

Enter the OK standard deduction if you did not claim itemized deductions on your Federal return.

If you claimed itemized deductions on your Federal return, enter the amount of your itemized deductions.

 

Line 12 - Exemptions:

Oklahoma allows $1,000 for each exemption claimed on the OK return.

 

Line 15 - Tax from Tax Table:

The tax comes from the Tax Table unless Form 573 “Farm Income Averaging” was used. If Form 573 was used, enter the amount from Form 573, line 22, and enter a “1” in the box.

 

Amounts withdrawn from a Health Savings Account for any purpose other than those described in Title 36 O.S. Section 6060.17 and which are included in your Federal adjusted gross income are subject to an additional 10% tax. Add the additional 10% tax to your tax from the tax table* and enter a “2” in the box.

 

* If you also used Form 573, add the 10% tax to the tax from Form 573, line 22.

Line 16 - Child Care/Child Tax Credit:

Complete line 16 unless your adjusted gross income from all sources (Form 511NR, line 7) is less than your Federal adjusted gross income (Form 511NR, line 2). If your adjusted gross income from all sources is less than your Federal adjusted gross income, complete Form 511NR, Schedule D to determine the amount to enter on line 16.

 

If your Federal Adjusted Gross Income is $100,000 or less and you are allowed either a credit for child care expenses or the child tax credit on your Federal return, you are allowed a credit against your Oklahoma tax.  Your Oklahoma credit is the greater of:

 

Or

 

If your Federal Adjusted Gross Income is greater than $100,000, no credit is allowed.

 

Line 21, Credit for Tax Paid to Another State:

A part-year resident who receives income for personal services from another state while a resident of OK that is taxed on that income in the other state is allowed a credit figured on Form 511TX.

 

Nonresidents do not qualify for this credit.

 

Line 24 - Oklahoma Use Tax:

For taxpayers who lived at least part of the tax year in Oklahoma.

 

Every state with a sales tax has a companion tax for purchases made outside the state. In Oklahoma, that tax is called "use tax". If you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax, you owe Oklahoma use tax on those items. Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. Individuals in Oklahoma are responsible for paying use tax on their out-of-state purchases.

 

Use tax in Oklahoma is not a new tax. It was first enacted in 1937. Inclusion of use tax on the income tax return is being done to help increase awareness of and compliance with use tax.

 

When purchased from an out-of-state retailer, whether by mail order, catalog, television shopping networks, radio, Internet, phone or in person, all items that would be subject to sales tax if purchased in Oklahoma are subject to use tax. Items that are subject to sales tax include books, compact discs, computer equipment, computer software, electronics, clothing, appliances, furniture and other home furnishings, sporting goods and jewelry. When an out-of-state retailer does not collect Oklahoma sales tax, the responsibility of paying the tax falls on the purchaser.

 

Use tax is calculated at the same rate as sales tax; which varies by city and county. The state sales tax rate is 4.5% (.045) plus the applicable city and/or county rates.

 

Complete Worksheet One if you kept records of all of your out-of-state purchases. Complete Worksheet Two if you did not keep records of all of your out-of-state purchases.

 

Worksheet 2 has two parts; the first part is a calculation of the amount due on items that cost less than $1,000 each and the second part is a calculation of the amount due on items that cost $1,000 or more each. The first calculation is based on a Use Tax Table that reflects the estimated amount of use tax due by taxpayers with varying amounts of Federal Adjusted Gross Income. The estimated amount is 0.056% (.00056) of Federal adjusted gross income. If you believe that estimate from the table is too high for your out-of-state purchases, you may estimate what you think you owe.

 

If you paid another state's sales or use tax on any purchase, that amount may be credited against the

Oklahoma use tax due on that purchase.

 

 

511 Schedules A, B and C

Schedule A, Line 1 - Interest on U.S. Government Obligations:

 

Interest income entered on the Federal FRM 1099-INT using code "A" is non taxable to the state and is included on this line.

 

Schedule A, Line 3 - Civil Service Retirement in Lieu of Social Security

 

Each individual may exclude 100% of their retirement benefits received from the Civil Service Retirement System (CSRS), including survivor benefits, paid in lieu of Social Security to the extent such benefits are included in the Federal Adjusted Gross Income. Retirement benefits paid under the Federal Employees Retirement System (FERS) do not qualify for this exclusion.

 

Enter your Retirement Claim Number from your Form CSA 1099-R in the box.:

 

* If the first three letters are CSA and the first number is 0, 1, 2, 3 or 4; it is under CSRS and qualifies.

* If the first three letters are CSF and the first number is 0, 1, 2, 3 or 4; it is under CSRS and qualifies.

* If the first three letters are CSA and the first number is 7 or 8; it is under FERS and may qualify.

* If the first three letters are CSF and the first number is 7 or 8; it is under FERS and may qualify.

 

Enclose a copy of Form CSA 1099-R with your return. To be eligible, the CSA 1099-R must be in your name.

 

 

Schedule A, Line 4 - Military Retirement

 

Each individual may exclude the greater of 75% of their retirement benefits or $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. The retirement benefits must be from any component of the Armed Forces of the United States.

 

 

Schedule A, Line 5 - OK Govt or Fed Civil Service Retirement:

 

Pensions entered on the Federal FRM 1099-R using code "G" in field 8240 will be considered pensions qualifying for the government pension exclusion. For any individual who claims the exclusion for CSRS retirees on Schedule 511-A, line 3, do not include on this line the amount you already claimed on Sched­ule 511-A , line 3. Each individual may exclude their retirement benefits up to $10,000 but not to exceed the amount included in the Federal Adjusted Gross Income.

 

Schedule A, Line 6 - Other Retirement Income:

 

Each individual may exclude their retirement benefits, up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income.

 

For any individual who claims the exclusions for government retirees on Schedule 511-A, line 5, the amount of the exclusion on this line cannot exceed $10,000 minus the amounts already claimed on Schedule 511-A, line5 (if less than zero, enter zero).

 

 

Schedule A, Line 7 - Railroad Retirement Board Benefits

 

Pensions entered on the Federal FRM 1099-R using code “R” in field 840 will be considered a qualified U.S. Railroad Retirement Board Benefit which are excludible on the Oklahoma return.

 

Schedule A, Line 8- Oklahoma Depletion

Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property during the taxable year. Any depletion deduction allowable is the amount so computed minus the Federal depletion claimed. If Oklahoma options are exercised, the Federal depletion not used due to the 65% limitation may not be carried over for Oklahoma purposes.

 

Note: Major oil companies, as defined in 52 OS Sec. 288.2, when computing Oklahoma depletion shall be limited to 50% of the net income (computed without the allowance for depletion from each property)

 

If you have Federal depletion being carried over into this year, see Schedule B, line 5.

Schedule A, Line 12 - Oklahoma Capital Gain Deduction

 

You can deduct qualifying gains receiving capital treatment which are included in Federal taxable income. “Qualifying gains receiving capital treatment” means the amount of net capital gains, as defined under the Internal Revenue Code Section 1222(11). The qualifying gain must:

1) Be earned on real or tangible personal property located within Oklahoma that you have owned for at least five uninterrupted years prior to the date of the sale.

2) Be earned on the sale of stock or ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been owned by you for at least two uninterrupted years prior to the date of the sale.

3) Be earned on the sale of real property, tangible personal property or intangible personal property located within Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma headquartered company, limited liability company, or partnership or an Oklahoma proprietorship business enterprise or owned by the owners of such entity or business enterprise for a period of at least two uninterrupted years prior to the date of the sale

Enclose Form 561 and a copy of your Federal Schedule D.

 

Schedule B, Line 1 - State and Municipal Bond Interest:

 

Interest income entered in the Tax Exempt field on the Federal FRM 1099-INT using code "B" is taxable to the state and is included on this line.

 

Schedule B, Line 2 - Out-of-State Losses:

 

If you incurred losses from the operation of an out-of-state business or rental, any such losses must be added back to Federal Adjusted Gross Income. This includes partnership and Subchapter S Corporations losses attributable to other states.

 

Schedule B, Line 6 - Recapture of Contributions to Oklahoma 529 College Savings Plan

• If an individual elects to take a rollover on a contribution within one year of the date of the contribution, for which a de­duction was taken on the previous year’s return, the amount of such rollover is included in income. As used in this paragraph, “rollover” means the transfer of funds from the Oklahoma Col­lege Savings Plan to any other plan under Section 529 of the Internal Revenue Code.

• An individual who makes a non-qualified withdrawal of con­tributions for which a deduction was taken in tax year 2005 or later, such non-qualified withdrawal and any earnings thereon are included in income. If any of the earnings have already been included in your Federal adjusted gross income, do not include those earnings again on this line.

 

Schedule C, Line 1 - Military Pay Exclusion:

 

Oklahoma residents who are members of any component of the Armed Services may exclude 100% of their active duty military pay, including Reserve & National Guard pay, to the extent such pay is included in the Federal Adjusted Gross Income. Retired military see Schedule A, line 4.

 

Schedule C, Line 3 - Qualified Adoption Expense:

 

An OK resident may deduct "Nonrecurring adoption expenses" not to exceed $20,000 per year.

 

Schedule C, Line 4 - Contributions to Oklahoma 529 College Savings Plan account:

 

Each individual may exclude contributions, up to $10,000, ($20,000 on a joint return) made to an account established pursuant to the Oklahoma College Savings Act. Contributions must be made to Oklahoma 529 College Savings Plan account(s). Contributions made to other state's college savings plans, the Coverdell Education Savings Account or transfers from one Oklahoma 529 College Savings Plan account to another may not be excluded.

 

Schedule C, Line 5- Deduction for Providing Foster Care:

Taxpayers contracting with child-placing agency may deduct $5,000 for expensed incurred providing foster care. Married persons filing separate in a in which they could have filed a joint return may each only claim $2,500

 

Schedule C, Line 7 – Miscellaneous Other Adjustments:

 

Income from discharge of indebtedness deferred under IRC Section 108(i)(1), which was added back to compute your Oklahoma taxable income in tax year 2010 may be partially deductible. Deduct an amount equal to the portion of such deferred income included in your Federal Adjusted Gross Income for tax year 2014.

 

 

511 Schedules D, E, and F

 

Schedule D -

Complete this schedule if you have out-of-state income (Form 511, line 4)

 

Schedule D, Line 1 - Deductions:

 

Enter the Oklahoma standard deduction if you did not claim itemized deductions on your Federal return.

 

If your filing status is “single” or “married filing separate”, your Oklahoma standard deduction is $6,200.

 

If your filing status is “married filing joint” or “qualifying widow(er)”, your Oklahoma standard deduction is $9,100.

 

If your filing status is “head of household”, your Oklahoma standard deduction is $12,400.

 

Note: You qualify for the Oklahoma standard deduction even when claimed as a dependent on another return.

• If you claimed itemized deductions on your Federal return (Form 1040, Schedule A), enter the amount of your allowable itemized deductions. (Enclose a copy of your Federal Schedule A).

 

 

Schedule D, Line 2 - Exemptions:

 

Oklahoma allows $1,000 for each exemption claimed on the OK return.

 

Schedule E - Child Care/Child Tax Credit

 

If your OK AGI (Form 511, line 7) is less than your Federal AGI (Form 511, line 1), your OK child care/child tax credit must be prorated.

 

Schedule F - Earned Income Credit

 

Complete Schedule 511-F if your Oklahoma AGI (Form 511, line 7) is less than your Federal AGI (Form 511, line 1). Your Oklahoma earned income credit must be prorated.

 

You are allowed a credit against your Oklahoma tax equal to 5% of the earned income credit allowed on your Federal return. The credit must be prorated on the ratio of Oklahoma AGI to Federal AGI.

 

511 Schedule G

 

Schedule 511-G provides you with the opportunity to make a financial gift from your refund to a variety of Oklahoma organizations.

 

511NR Schedule NR-1 and Schedule A

 

Schedule A, Line 1 - State and Municipal Bond Interest:

 

Interest income entered in the Tax Exempt field on the Federal FRM 1099-INT using code "B" is taxable to the state and is included in the Federal amount column. The OK amount is that part received while a resident of OK. Use the "Ctrl W" function to enter the OK amount on the worksheet.

 

Schedule A, Line 5 - Recapture of Contributions to Oklahoma 529 College Savings Plan

• If an individual elects to take a rollover on a contribution within one year of the date of the contribution, for which a de­duction was taken on the previous year’s return, the amount of such rollover is included in income. As used in this paragraph, “rollover” means the transfer of funds from the Oklahoma Col­lege Savings Plan to any other plan under Section 529 of the Internal Revenue Code.

• An individual who makes a non-qualified withdrawal of con­tributions for which a deduction was taken in tax year 2005 or later, such non-qualified withdrawal and any earnings thereon are included in income. If any of the earnings have already been included in your Federal adjusted gross income, do not include those earnings again on this line.

 

Oklahoma Amount column -

Enter that part of the “Federal Amount” column that represents the rollover taken or non-qualified withdrawal received while a resident of Oklahoma.

 

511NR Schedules B and C

 

Schedule B, Line 1 - Interest on U.S. Government Obligations:

 

Interest income entered on the Federal FRM 1099-INT using code "A" is non taxable to the state and is included in the Federal amount column. The OK amount is that part that represents U.S. Government interest included on Form 511NR-1, line 2 in the "OK Amount" column.

 

Schedule B, Line 3 - Civil Service Retirement in Lieu of Social Security

 

Each individual may exclude 100% of their retirement benefits received from the Civil Service Retirement System (CSRS), including survivor benefits, paid in lieu of Social Security to the extent such benefits are included in the Federal Adjusted Gross Income. Retirement benefits paid under the Federal Employees Retirement System (FERS) do not qualify for this exclusion.

 

Enter your Retirement Claim Number from your Form CSA 1099-R in the box.:

 

* If the first three letters are CSA and the first number is 0, 1, 2, 3 or 4; it is under CSRS and qualifies.

* If the first three letters are CSF and the first number is 0, 1, 2, 3 or 4; it is under CSRS and qualifies.

* If the first three letters are CSA and the first number is 7 or 8; it is under FERS and may qualify.

* If the first three letters are CSF and the first number is 7 or 8; it is under FERS and may qualify.

 

Enclose a copy of Form CSA 1099-R with your return. To be eligible, the CSA 1099-R must be in your name.

 

Oklahoma Amount column - Each individual may exclude 100% of their CSRS retirement benefits included on Form 511NR, line 10, in the “Oklahoma Amount” column.

Schedule B, Line 4 - Military Retirement

 

Each individual may exclude 75% of their retirement benefits or $10,000, whichever is greater, but not to exceed the amount included in the Federal Adjusted Gross Income. The retirement benefits must be from any component of the Armed Forces of the United States.

 

 

Schedule B, Line 5 - OK Govt or Fed Civil Service Exclusion:

 

Pensions entered on the Federal FRM 1099-R using code "G" in field 8240 will be considered pensions qualifying for the pension exclusion. For any individual who claims the exclusion for CSRS retirees on Schedule 511NR-B, line 3, do not include on this line the amount you already claimed on Sched­ule 511NR-B, line 3. For any individual who claims the exclusion for military retirees on Schedule 511NR-B, line 4, the amount of the exclusion on this line cannot exceed $10,000 minus the amount already claimed on Schedule 511NR-B, line 4 (if less than zero, enter zero).

Schedule B, Line 6 - Other Retirement Income:

 

Each individual may exclude retirement benefits up to $10,000, but not to exceed the amount included in Federal AGI. For any individual who claims the retirement exclusion on Schedule 511NR-B, line 5, the amount of the exclusion on this line cannot exceed $10,000 minus amount already claimed on Schedule 511NR-B, line 5, in the Federal Column.

  

 

Schedule B, Line 7 - Railroad Retirement Board Benefits

 

Pensions entered on the Federal FRM 1099-R using code “R” in field 840 will be considered a qualified U.S. Railroad Retirement Board Benefit which are excludible on the Oklahoma return.

 

Schedule B, Line 8- Oklahoma Depletion

Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property during the taxable year. Any depletion deduction allowable is the amount so computed minus the Federal depletion claimed. If Oklahoma options are exercised, the Federal depletion not used due to the 65% limitation may not be carried over for Oklahoma purposes.

 

Note: Major oil companies, as defined in 52 OS Sec. 288.2, when computing Oklahoma depletion shall be limited to 50% of the net income (computed without the allowance for depletion from each property)

 

If you have Federal depletion being carried over into this year, see Schedule 511NR-A, line 4.

 

Schedule B, Line 12 - Nonresident Active Duty Military Wages

Nonresident active duty military pay, covered under the provisions of the Soldiers’ and Sailors’ Civil Relief Act, should be deducted from Federal Adjusted Gross Income before the calculation of tax.  Enter nonresident active duty military pay only to the extent such pay is included on Form 511NR, line 1, in the “Federal Amount” column. Enclose a copy of the military Form W-2.

 

Schedule B, Line 13 - Oklahoma Capital Gain Deduction:

 

Federal Amount Column – You can deduct qualifying gains receiving capital treatment which are included in federal taxable income. “Qualifying gains receiving capital treatment” means the amount of net capital gains, as defined under the Internal Revenue Code Section 1222(11). The qualifying gain must:

1) Be earned on real or tangible personal property located within Oklahoma that you have owned for at least five uninterrupted years prior to the date of the sale.

2) Be earned on the sale of stock or ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been owned by you for at least two uninterrupted years prior to the date of the sale.

3) Be earned on the sale of real property, tangible personal property or intangible personal property located within Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma headquartered company, limited liability company, or partnership or an Oklahoma proprietorship business enterprise where such property has been owned by such entity or business enterprise or owned by the owners of such entity or business enterprise for a period of at least two uninterrupted years prior to the date of the sale.

Enter the amount from Form 561NR, Column F, line 10. Enclose Form 561NR and a copy of your Federal Schedule D.

Oklahoma Amount Column – Enter the amount from Form 561NR, Column G, line 10.

 

Schedule C, Line 1 - Military Pay Exclusion:

 

OK residents who are members of any component of the Armed Services may exclude 100% of their active military pay, including Reserve & National Guard pay, received during the time they were a resident. The military pay must be included on Schedule 511NR-1, line 1 in the Oklahoma Amount column to qualify for this exclusion. Retired military see instructions for Schedule 511NR-B, line 4.

 

Schedule C, Line 3 - Qualified Adoption Expense:

 

An OK resident may deduct "Nonrecurring adoption expenses" not to exceed $20,000 per year.

 

Schedule C, Line 4 - OK 529 College Savings Plan Contributions:

 

Each individual may exclude contributions, up to $10,000 ($20,000 on a joint return), made to an account established pursuant to the Oklahoma College Savings Act. Contributions must be made to Oklahoma 529 College Savings Plan account(s). Contributions made to other state's college savings plans, the Coverdell Education Savings Account or transfers from one Oklahoma 529 College Savings Plan account to another may not be excluded.

 

Schedule C, Line 5 – Deduction for Foster Care:

 

Taxpayers contracting with child-placing agency may deduct $5,000 for expensed incurred providing foster care. Married persons filing separate in a in which they could have filed a joint return may each only claim $2,500.

 

 

511NR Schedules D and E

 

Schedule D -  Child Care/Child Tax Credit

 

If your AGI from all sources (Form 511NR, line 7) is less than your Federal AGI (Form 511NR, line 2) your OK child care/child tax credit must be prorated.

 

Schedule E - Earned Income Credit

 

Residents and part-year residents are allowed a credit against Oklahoma tax equal to 5% of the earned income credit allowed on the Federal return. The credit must be prorated on the ratio of AGI-Oklahoma sources (line 6) to Federal AGI (line 2).

 

511NR Schedule F

 

Schedule 511NR-F provides you with the opportunity to make a financial gift from your refund to a variety of Oklahoma organizations. Original Returns only.

Form 538-H

 

File Form 538-H if you are eligible for the Property Tax Relief/Credit

 

Any person 65 years of age or older or any totally disabled person who is head of a household, a resident of and domiciled in this state during the entire preceding calendar year, and whose gross household income for such year does not exceed $12,000, may file a claim for property tax relief on the amount of property taxes paid on the household occupied by such person during the preceding calendar year. The credit may not exceed $200.

 

If you are filing an OK Income tax return, claim the property tax refund on the Form 511. Your return claiming the property tax credit must be filed no later than June 30th for property tax paid for the preceding calendar year.

 

All claims for relief in respect to property taxes shall be received by the Oklahoma Tax Commission on or before June 30th each year for property taxes paid for the preceding calendar year.

 

Claims for property tax relief filed shall be allowed as a direct tax credit on the taxpayer's individual income tax return filed for the calendar year involved. In all cases where claimants have no income tax liability, such claim, or any balance thereof, shall be paid out in the same manner and out of the same fund as refunds of income taxes.

 

Form 538-S

 

File Form 538-S if you are eligible for the Sales Tax Relief/Credit

 

To file for sales tax relief, you must be an OK resident and live in OK for the entire year. Your total gross household income cannot exceed $20,000 unless one of the following applies:

   - You claim an exemption for your dependent, or

   - Your are age 65 or older by the end of the year, or

   - You have a physical disability constituting a substantial handicap to employment.

If any one of the above three items pertain to you, your total gross household income limit is increased to $50,000.

 

If you are filing an OK Income tax return, claim the sales tax refund on the Form 511. File by April 15th if the amount of your overpayment (refund) on your tax return is less than the amount of this credit or if you owe tax on your tax return. Your return claiming the sales tax credit must be filed no later than June 30th if the amount of your overpayment (refund) is equal to or more than the amount of this credit.

 

Form 561

 

Individual taxpayers can deduct qualifying gains receiving capital gain treatment which are included in federal taxable income.

“Qualifying gains receiving capital treatment” means the amount of net capital gains, as defined under Internal Revenue Code Section

1222(11). The qualifying gain must result from:

1. the sale of real or tangible personal property located within Oklahoma that has been owned for at least five uninterrupted years prior to the date of the transaction that gave rise to the capital gain; or

2. the sale of stock or an ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been owned for at least two uninterrupted years prior to the date of the sale.

3. the sale of real property, tangible personal property or intangible personal property located within Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma headquartered company, limited liability company, or partnership or an Oklahoma proprietorship business enterprise where such property has been owned by such entity or business enterprise or owned by the owners of such entity or business enterprise for a period of at least two uninterrupted years prior to the date of the sale.

 

An Oklahoma company, limited liability company or partnership is an entity whose primary headquarters has been located in Oklahoma for at least two uninterrupted years prior to the date of sale.

A capital loss carryover from qualified property reduces the current year gains from eligible property.

 

Pass-through entities....

Capital gain from qualifying property, as described above, held by a pass-through entity is eligible for the Oklahoma capital gain deduction, provided the individual has been a member of the pass-through entity for an uninterrupted period of the applicable two or five years and the pass-through entity has held the asset for not less than the applicable two or five uninterrupted years prior to the

date of the transaction that created the capital gain. The type of asset sold, as shown in 1 and 2 above, determines whether the applicable number of uninterrupted years is two or five. The pass-through entity must provide supplemental information to the individual identifying the pass-through of qualifying capital gains.

 

Installment sales...

Qualifying gains included in an individual taxpayer's Federal adjusted gross income for the current

year which are derived from installment sales are eligible for exclusion, provided the appropriate

holding periods are met.

 

Line 1 - Qualifying Oklahoma capital gains and losses:

 

Complete columns A through F using the information from the federal Schedule D, line 8a or from federal Form(s) 8949. Also in column A, enter either the Oklahoma location of the real or tangible personal property sold or the Federal Identification Number of the company, limited liability company or partnership whose stock or ownership interest was sold. Do not include gains and losses reported on Form 561 lines 2 through 5.

 

Line 2 - Installment Sales:

 

If federal Form 6252 was used to report the installment method for gain on the sale of eligible property on the federal return, compute the capital gain deduction using the current year's taxable portion of the installment payment. Enclose federal Form 6252. Capital gain from an installment sale is eligible for the Oklahoma capital gain deduction provided the property was held for the appropriate holding period as of the date sold.

 

Line 3 - Business Property Gains (Losses)

 

Enter the qualifying Oklahoma net capital gain, reported on federal Schedule D, from the federal Form 4797. Enclose a copy of the federal Form 4797.

 

Line 4 - Other qualifying capital gains:

 

Enter other qualifying Oklahoma capital gains reported on federal Schedule D, line 11. Enclose the applicable federal form(s). If not shown on the federal form, enclose a schedule identifying the type and location of the property sold, the date of the sale, and the uninterrupted holding period of the property.

 

Line 5 - Qualifying Oklahoma net capital gain or loss from partnerships, S corporations, trusts and estates

 

Enter qualifying Oklahoma net capital gain or loss from partnerships, S corporations, trusts and estates.

 

Enclose a copy of the federal Schedule K-1. Enclose a schedule identifying the type and location of the property sold, the date of sale, the uninterrupted holding period of the property by the pass-through entity as of the date of sale, and the uninterrupted period of time the individual has been a member of the pass-through entity.

 

Line 7 - Carryover:

 

Enter the total qualifying Oklahoma capital loss carryover from the prior year's return.

 

Line 9 - Net OK Capital Gain in Fed AGI:

 

The Oklahoma capital gain deduction may not exceed the Oklahoma portion of the net capital gain included in the federal adjusted gross income. To determine the Oklahoma net capital gain, complete the worksheet.

 

Form 561NR

 

Individual taxpayers can deduct qualifying gains receiving capital gain treatment which are included in federal taxable income.

“Qualifying gains receiving capital treatment” means the amount of net capital gains, as defined under Internal Revenue Code Section

1222(11). The qualifying gain must result from:

1. the sale of real or tangible personal property located within Oklahoma that has been owned for at least five uninterrupted years prior to the date of the transaction that gave rise to the capital gain; or

2. the sale of stock or an ownership interest in an Oklahoma company, limited liability company, or partnership where such stock or ownership interest has been owned for at least two uninterrupted years prior to the date of the sale.

3. the sale of real property, tangible personal property or intangible personal property located within Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma headquartered company, limited liability company, or partnership or an Oklahoma proprietorship business enterprise where such property has been owned by such entity or business enterprise or owned by the owners of such entity or business enterprise for a period of at least two uninterrupted years prior to the date of the sale.

 

An Oklahoma company, limited liability company or partnership is an entity whose primary headquarters has been located in Oklahoma for at least three uninterrupted years prior to the date of sale.

 

A capital loss carryover from qualified property reduces the current year gains from eligible property.

 

Pass-through entities....

Capital gain from qualifying property, as described above, held by a pass-through entity is eligible for the Oklahoma capital gain deduction, provided the individual has been a member of the pass-through entity for an uninterrupted period of the applicable two or five years and the pass-through entity has held the asset for not less than the applicable two or five uninterrupted years prior to the

date of the transaction that created the capital gain. The type of asset sold, as shown in 1 and 2 above, determines whether the applicable number of uninterrupted years is two or five. The pass-through entity must provide supplemental information to the individual identifying the pass-

through of qualifying capital gains.

 

Installment sales...

Qualifying gains included in an individual taxpayer's Federal adjusted gross income for the current

year which are derived from installment sales are eligible for exclusion, provided the appropriate

holding periods are met.

 

Line 1 - Qualifying Oklahoma capital gains and losses:

 

Complete columns A through F using the information from the federal Schedule D, line 8 or from federal Schedule D-1, line 8. Also in column A, enter either the Oklahoma location of the real or tangible personal property sold or the Federal Identification Number of the company, limited liabiltiy company or partnership whose stock or ownership interest was sold. Do not include gains and losses reported on Form 561NR lines 2 through 5. In column G enter the qualifying Oklahoma capital gains and losses reported in column F which were sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

 

Line 2 - Installment Sales:

 

Column F: If federal Form 6252 was used to report the installment method for gain on the sale of eligible property on the federal return, compute the capital gain deduction using the current year's taxable portion of the installment payment. Enclose federal Form 6252. Capital gain from an installment sale is eligible for the Oklahoma capital gain deduction provided the property was held for the appropriate holding period as of the date sold. In column G enter the capital gain from an installment sale of eligible property reported in column F which was sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

 

Line 3 - Business Gains and (Losses):

 

Column F: Enter the qualifying Oklahoma net capital gain from the federal Form 4797 which was reported on federal Schedule D. Enclose a copy of the federal Form 4797. In column G enter the other qualifying Oklahoma capital gain from federal Form 4797 reported in column F which were sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column. 

 

Line 4 - Other qualifying capital gains:

 

Column F: Enter other qualifying Oklahoma capital gains reported on federal Schedule D, line 11. Enclose the applicable federal form(s). If not shown on the federal form, enclose a schedule identifying the type and location of the property sold, the date of the sale, and the uninterrupted holding period of the property. In column G enter the other qualifying Oklahoma capital gains reported in column F which were sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

 

Line 5 - Qualifying Oklahoma net capital gain or loss from partnerships, S corporations, trusts and estates

 

Enclose a copy of the federal Schedule K-1. Enclose a schedule identifying the type and location of the property sold, the date of sale, the uninterrupted holding period of the property by the pass-through entity as of the date of sale, and the uninterrupted period of time the individual has been a member of the pass-through entity. In column G enter the qualifying Oklahoma net capital gain or loss from flow-through entities reported in column F which were sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

 

Line 7 - Carryover:

 

Column F: Enter the total qualifying Oklahoma capital loss carryover from the prior year's return. In column G enter the qualifying Oklahoma capital loss carryover reported in column F which was sourced to Oklahoma on Form 511NR, line 7 “Oklahoma Amount” column.

Line 9 - Net Capital Gain:

 

Column F: The Oklahoma capital gain deduction, in the “Federal Amount” column, may not exceed the net capital gain included in the federal adjusted gross income. This is the net capital gain from Form 511NR, line 7 “Federal Amount” column. If a capital loss, enter -0-. Column G: The Oklahoma capital gain deduction, in the “Oklahoma Amount” column, may not exceed the portion of the net capital gain sourced to Oklahoma. This is the net capital gain from Form 511NR, line 7 “Oklahoma Amount” column. If a capital loss, enter -0-.