OKLAHOMA
separate property state

 

Military Income:   Military income is exempt. This also includes Reserve and National Guard personnel.

Military Filing Requirement:  Yes, an Oklahoma tax return must be filed by all residents of the state.

Military Spouse Residency Relief Act:  Service member in state in compliance with military orders. Spouse in state to be with service member. Spouse must be a resident of same state as service member. Must provide copies of the service member's military W-2, spouse's W-2,LES and copies of their Federal income tax return as well as their resident state's return in order to avoid processing delays. Only salaries, wages and commissions for work performed in Oklahoma is exempted from Oklahoma taxation. (Personal service business income earned by a qualifying nonresident spouse may be exempt as well. A personal service business generally does not include any business that makes, buys, or sells good to produce income. Examples include the business of a doctor, lawyer, accountant, carpenter and/or painter.)

Forms Used:            

Filing Status:  Same as on the federal return unless one of the spouses is not a resident of Oklahoma.  Oklahoma allows the spouse to retain the same legal residency as the military member.  Unless the military member or the spouse are both Oklahoma residents they must file a joint nonresident return.

Attach Copy of Federal Return:  No

Not Taxed: 

Other State Tax Credit:  Available.  Attach Oklahoma Form Schedule E and copy of other state return.

Where to Mail:
Oklahoma Tax Commission
Income Tax
P O Box 26800
Oklahoma City, OK  73126-0800
 
Refund Inquiry:  (405) 521-3160 Forms: (405) 521-3108
General Information(405) 521-3160 Electronic Filing(405) 521-3124
Other Info: Website:  www.oktax.state.ok.us

Taxpayer Assistance Division
2501 N Lincoln Blvd
Oklahoma City, OK 73194-0009

 
E-filing Info:   Retain OTC Form 511-EF for 3 years.  The following CANNOT be filed electronically:
  • Nonresidents and part year residents
Tax Form Instructions:
Resident Instructions Non-Resident Instructions

 

Filing Status Scenarios

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer)
2.  Taxpayer and Spouse Different States of Residence
3.  Taxpayer and Spouse Non-Residents
4.  Taxpayer Non-Resident - Spouse Part-Year Resident
5.  Taxpayer Married or Single - Resident but Income from Other State
6.  Amended Return

 

1.  Taxpayer and Spouse Residents (Use also for Single Taxpayer) - Taxpayer and spouse are both Oklahoma residents, lived at their present location all year, and one or both had income.

Main Info Screen.

W-2 Form.  Oklahoma grants a military pay exclusion.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Oklahoma 511 Form.  A joint resident Oklahoma income tax return is prepared.

Oklahoma Form 511, Page 3, Schedule C - Line 1 displays the amount of exempted income. Ensure the military pay from the W2 is listed.

Complete all other fields and forms with red or required information.

2.  Taxpayer and Spouse - Different States of Residence - Taxpayer or spouse is a resident of Oklahoma, while the other member is a resident of a different state.  A Oklahoma income tax return must be prepared due to the taxpayer or spouse having Oklahoma earned income.

Main Info Screen.  If the spouse is a domicile (resident) of a state, the parties must either file Married filing separately or Married filing joint.  For this example, the taxpayer is a resident of Oklahoma while the spouse is a resident of North Dakota. IF THE NONRESIDENT SPOUSE IS AN ACTIVE DUTY MILITARY MEMBER YOU MUST FILE A JOINT NONRESIDENT RETURN. (Refer to Scenario 3 on how to exempt out the nonresident military members income.)

W-2 Form.  Oklahoma grants a military pay exclusion.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Oklahoma 511NR Form.   Either Married filing joint or Married filing separately must be selected for filing status. In this case, the Married filing separately return the largest refund.

Oklahoma Form 511, Page 3, Schedule C - Line 1 displays the amount of exempted income. Ensure the military pay from the W2 is listed.

Review the remainder of the Oklahoma Form 511NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

3.  Taxpayer and Spouse Non-Residents - Taxpayer and spouse are residents of a different state.  The spouse and taxpayer must file a Oklahoma tax return due to one or both having Oklahoma earned income.

Main Info Screen.  If both members are residents of another state, the parties should file as nonresidents.  For this example, the taxpayer and spouse are both residents of Wisconsin but must file a Oklahoma income tax return because the spouse worked in Oklahoma.

Resident/Nonresident Worksheet.  In order to comply with the Military Spouse Residency Relief Act, the nonresident military spouse's wages are set to zero as in the example. Link to a scratch pad from the indicated field.

 

Using the example, enter the nonresident spouse's wages on the scratch pad. Ensure the wages are entered as a negative number

Oklahoma Form 511NR.   A joint non-resident Oklahoma income tax return should be prepared.  You must enter the state of residency, as in the example.  This form is used to subtract out the other-states (Wisconsin) income. 

 

Oklahoma Form 511NR, Page 3, Schedule B - Oklahoma Subtractions, Line 10.  To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident military income must be taken off of the Oklahoma 511NR Form.  You do this by entering the amount of nonresident military wages from the military member's W-2 form on line 10.  Check the box next to line 4 if the taxpayer has interest income and it is not from an Oklahoma bank.

Review the remainder of the Oklahoma Form 511NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

4.  Taxpayer Non-Resident - Spouse Part-Year Resident - Taxpayer and spouse moved to or from Oklahoma during the tax year.  The taxpayer is a resident of a different state.  The Spouse is a part-year resident of Oklahoma.  The Spouse and taxpayer must file a Oklahoma tax return due to one or both of them having Oklahoma earned income and possibly income from another state.

Main Info Screen.  For this example, the taxpayer is in the military and a resident of Indiana.  The taxpayer and spouse moved from Oklahoma to North Dakota during the year.  The spouse was a resident of Oklahoma but is now changing their residency to North Dakota for tax purposes.  The spouse therefore was a part-year resident of both Oklahoma and North Dakota and must file a Oklahoma income tax return because the spouse worked in Oklahoma.

Part Year Resident States Worksheet.  Review form to ensure income is split correctly for the appropriate states.

Oklahoma Form 511NR.   A joint part-year resident Oklahoma income tax return should be prepared.  This form is used to subtract out all the other-states (Indiana and North Dakota) income. 

Oklahoma Form 511NR, Page 3, Schedule B - Oklahoma Subtractions, Line 10.  To comply with the provisions in the Service Member's Civil Relief Act, the military member's non-resident military income must be taken off of the Oklahoma 511NR Form.  You do this by entering the amount of nonresident military wages from the military member's W-2 form on line 10.

Review the remainder of the Oklahoma Form 511NR to ensure the other state income is being subtracted correctly.  Complete all other fields and forms with red or required information.

5.  Married or Single Military Resident of Oklahoma with Income from Another State  - Taxpayer is single.  The taxpayer must file a Oklahoma tax return due to him or her having Oklahoma earned income.

Main Info Screen.  For this example the taxpayer is a military member stationed in North Dakota but a resident of Oklahoma.  The taxpayer had a job in North Dakota therefore having North Dakota earned income.

W-2 Form.  Oklahoma grants a military pay exclusion.  To exclude the military income properly you must check the Military box on the bottom of the W-2 form for the military member's income.

Resident/Nonresident Worksheet.  Review form to ensure income is split correctly for the appropriate states.

 

Oklahoma 511 Form.  A resident Oklahoma income tax return is prepared.  Oklahoma taxes residents on income, (other than military income), from all sources, even income earned while living in another state (North Dakota as in this example).  

Oklahoma Form 511, Page 3, Schedule C - Line 1 displays the amount of exempted income. Ensure the military pay from the W2 is listed.

Oklahoma 511TX, Credit for Taxes Paid to Another State.  Oklahoma 511TX Form must be added to the tax return and prepared to give a credit for taxes paid to another state (North Dakota).  You must complete the other states tax return first, then enter the amount of tax from the other states tax return.  This is not the amount the taxpayer had withheld from his or her pay but the amount of tax imposed on them.  Line 1 is the amount of income earned in the other state (North Dakota).  Line 6 is the amount of income tax liability on the (North Dakota) tax return.  A copy of the other state's return must be attached to the Oklahoma return if not e-filed.

Complete all other fields and forms with red or required information.

6.  Amended Return  - An amended Oklahoma return must be filed because the taxpayer received new tax information after their Oklahoma return was filed.
Federal 1040X Form.  Before making any changes to the tax return add the US 1040X form to the tax return.  You must check the box under Income and Deductions to lock in the entries in Column A - Original amount or as previously adjusted.

Oklahoma 511X - Amended Resident Tax Return.  Add the Oklahoma 511X Form to the return.  Answer the questions as in the example.  You must check the box to lock in the entries in Column A - As originally reported or as adjusted, before making any changes to the return.

Make whatever changes are required to the federal tax return.  For this example, a new W-2 was received.

Oklahoma 511X - Amended Resident Tax Return, Page 2.  Return to the Oklahoma 511X form to determine if the taxpayer is receiving an additional refund or owes money.  You must enter an explanation for why the Amended Return is being prepared.  Enter the current date in the Date field.

Amended returns can not be e-filed.  The taxpayer must mail the federal 1040X and any state amended returns if required to be filed.