The Oklahoma State Tax form serves as a crucial document for residents, part-year residents, and non-residents of Oklahoma to file and report their income taxes to the state. It caters to a variety of situations with forms such as the 511 and 511EZ for standard filings and the 540 for Discover Card Payment Authorization among others, aiming to simplify the process with clear instructions and direct deposit options for certain filers. If understanding or navigating your tax obligations seems daunting, the packet provides comprehensive guidance to facilitate a smoother filing experience.
To efficiently handle your Oklahoma income tax filing, click the button below to ensure you select and complete the appropriate form.
Every year, Oklahoma residents, part-year residents, and non-residents who have earned income in Oklahoma must navigate the process of fulfilling their state income tax obligations using the appropriate forms provided by the Oklahoma Tax Commission. With the 1997 tax year exemplifying efforts to simplify this process, taxpayers are presented with various forms like the 511 and 511EZ alongside comprehensive instructions tailored to assist in their accurate completion. The packet not only includes forms for individual income tax returns but also introduces options such as the 540 form for Discover Card payments and guidance on opting for direct deposit refunds for those filing with the 511EZ form. The April 15 deadline underscores the importance of timely filing to avoid penalties, while the booklet's inclusion of eligibility criteria aims to direct taxpayers to the right form based on their residency status and specific tax situations. Moreover, the Oklahoma Tax Commission emphasizes the prerequisite of having completed the Federal income tax return as this information directly influences the state return details. Supplementing this, the booklet offers valuable information on tax adjustments, exemptions, and credits which could affect one’s taxable income, ensuring Oklahoma residents are well-prepared to accurately report their income and potentially maximize their refunds. The Tax Commission’s dedication to facilitating taxpayer needs is evident through their revamped forms, clear instructions, and accessibility for inquiries or assistance, signaling their commitment to a smoother tax filing experience.
OR MS
AN D
ON G AN D
H OR T OR M
K L AH OMA E S(I D EN T
N D I V I D U AL N COME
AX OR MS AN D
N S T R U CT I ON S
This packet includes: (See page 2 for the Table of Contents)
¥Instructions for completing the 511 income tax form
¥Instructions for completing the 511EZ income tax form
¥Two 511 income tax forms
¥Two 511EZ income tax forms
¥One 540 form: Discover¨ Card Payment Authorization Form
¥Instructions for utilizing the new direct deposit option (511EZ only)
¥1997 income tax tables
Filing date:
¥ Your return must be postmarked by April 15, 1998.
K L AH OMA AX OMMI S S I ON
2501 North Lincoln Boulevard
Oklahoma City, Oklahoma 73194
For information regarding assistance with your tax return, please see page 12.
K L AH OMA N D I V I D U AL N COME AX
Dear Oklahoma Taxpayer,
The Oklahoma Tax Commission has revamped the 1997 income tax forms. Our goal is to provide a form that is easier to read and has clearer instructions. These changes are just one of the new things we are doing to serve you better.
If you have any questions about filing your Oklahoma income tax return, please call or visit us at one of the locations listed on the back cover of this booklet. Our newly structured Taxpayer Assistance Division, available at all of our locations, is ready to assist you. Also, be sure and visit our web site next time you are online. Our site address is www.oktax.state.ok.us and the option to e-mail us is also available on the site.
As a resident of Oklahoma, you have several ways to file your 1997 income taxes. The forms enclosed in this booklet are 511 and 511EZ forms. The Form 511EZ is traditionally used for those who prefer a short form method and have a relatively simple filing. Also available in this booklet is the Form 511, which is a longer form and allows for more complex information, such as multiple exclusions and/or deductions. If you are interested in the option of electronically filing your Oklahoma tax return, visit an authorized tax preparer location.
If you are a part-year or non-resident of the State of Oklahoma, but have income to report to Oklahoma, please use our forms packet 511NR, which stands for Ònon-resident.Ó
Sincerely,
E F OR E OU E GI N
You must complete your Federal income tax return before you begin your 1997 Oklahoma income tax return. You will use the informa- tion entered on your Federal return to com-
plete your Oklahoma return.
Remember, when completing your Oklahoma return, round all amounts to the nearest dollar.
Example:
$2.01 to $2.49 - round down to $2.00 $2.50 to $2.99 - round up to $3.00
Be sure and read all instructions before you begin. To ensure you use the correct form, please read the section entitled “Which Form Should I Use?” on page 3 which outlines the qualifications for each type of Oklahoma income tax return form.
If you pay someone to prepare your return, be sure you take them this entire packet. The use of the label and envelope in the center of this packet is designed to speed up the process- ing of your return.
E L P F U L I N T S
¥File your return by April 15, 1998. If you need to file for an extension, use Form 504 and then later, file via Form 511.
¥Be sure you enclose copies of your Form(s) W-2 or 1099 with your return, otherwise your return cannot be processed.
¥Be sure to sign and date the return. If you are filing a joint return, both you and your spouse need to sign.
¥If you are interested in paying the tax due by Discover¨ Card, please see page 9 for the Form 540.
¥After filing, if you have questions regarding the status of your refund, please call (405) 521-3146. If you are calling from outside the Oklahoma City area, but within Oklahoma, please call (800) 522-8165, extension 1-3146.
¥If you have any questions, please do not hesitate to contact us in one of the ways listed on the back cover of this booklet.
Robert E. Anderson, Chairman
Oklahoma Tax Commission
AB L E OF ON T E N T S
Before You Begin
2
Helpful Hints
Residence Defined
3
What Is Resident Income?
Who Must File?
Which Form Should I Use?
Estimated Income Tax
What Is an Extension?
4
All About Refunds
Net Operating Loss
What If I Need to Amend A Return?
Form 511: Top of Form Instructions
Form 511: Select Line Instructions
5-9
Form 540: Discover Card Payments
9
Form 511EZ: Top of Form Instructions
10
Form 511EZ: Line by Line Instructions
11
When You Are Finished
Need Assistance? How to Reach Us
12
•2•
E S I D E N CE E F I N E D
H O U S T I L E
E S I D E N T
An Oklahomaresident is a person domiciled in this state for the entire tax year. ÒDomicileÓ is the place establish- ed as a personÕs true, fixed, and permanent home. A domicile, once established, remains until a new one is adopted.
A R T E A R E S I D E N T
PA part-year resident isan individual whose domicile was in Oklahoma for a period of less than 12 months during the tax year.
O N E S I D E N T
NA non-residentis an individual whose domicile was not in Oklahoma for any portion of the tax year.
E M B E R S O F T H E R M E D O R CE S
MResidency is established accordingto military domicile as established by the SoldiersÕ and SailorsÕ Civil Relief Act.
If you were an Oklahoma resident at the time you entered military service, assignment to duty outside Oklahoma does not of itself change your state of resi- dence. You must file your return as a resident of Okla- homa until such time as you establish a permanent residence in another state and change your military records. See the specific instructions for line 28 - Partial Military Pay Exclusion.
When the spouse of a military member is a civilian, most states, Oklahoma included, allow the spouse to retain the same legal residency as the military member. They file a joint resident tax return in the military membersÕ State of Legal Residency (if required) and are taxed jointly under non-resident rules as they move from state to state. If the non-military spouse does not wish to choose the allowed residency of the military member, then the same residency rules apply as would apply to any other civilian. The spouse would then comply with all residency rules where living.
If both the military member and spouse are Oklahoma residents, they shall file Form 511 residency return. In this case, you should include income of both spouses and take credit for tax paid another state, if applicable. If either spouse is a part-year or non-resident, they shall use Form 511NR.
H AT S E S I D E N T N COME
An Oklahoma resident individual is taxed on all income reported on the federal return, except income from real and tangible personal property located in another state, income from business activities in another state, or the gains/losses from the sales or exchange of real property in another state.
Note: Residents are taxed on all income from interest, dividends, salaries, commissions and other pay for personal services regardless of where earned. Wages earned outside of Oklahoma must be included in your Oklahoma return, and credit for taxes paid other states claimed on Oklahoma Schedule E. (See line 46.)
Every Oklahoma resident who has sufficient gross income to require them to file a Federal income tax return is required to file an Oklahoma return, regardless of the source of income. An Oklahoma return is also required if no Federal return is due because income
consists of municipal interest exempt from Federal
taxation. If you do not have a filing requirement, but
have Oklahoma tax withheld, see Form 511RF.
A R T
E A R
E S I D E N T .
P
Every part-year resident, during the period of residency, has the same filing requirements as a resident. During the period of non-residency, an Oklahoma return is also required if the Oklahoma part-year resident has gross income from Oklahoma sources of $1,000 or more. Use Form 511NR.
O N R E S I D E N T
NTo usethe 511EZ form found in this booklet, you must meet all of the following requirements:
Every non-resident with gross income from Oklahoma sources of $1,000 or more is required to file an Okla- homa income tax return. Use Form 511NR.
OR MS E
¥ You were an Oklahoma resident for the entire year.
¥ You have no adjustments to Federal Adjusted Gross Income such as Federal Bond Interest, exempt income under statute, etc.
¥ You do not claim any credits.
There are two exceptions to this requirement: ¥¥ low income sales tax relief, and/or ¥¥ child care credit.
¥You are not filing after April 15, 1998.
¥You did not make individual estimated tax payments for 1997.
If you do not meet the above qualifications, and you are a resi- dent of Oklahoma, you need to file a Form 511, also available in this booklet.
If you do not meet the above qualifications because you are a part-year or non-resident, please request a 1997 Oklahoma Non-Residents and Part-Year Residents booklet.
If you are in need of a form other than those you already have, need additional copies of this booklet, or other types of assis- tance, please see the section entitled “Need Assistance? How to Reach Us” on the back panel of this booklet.
S T I MAT E D N COME AX
If you can reasonably expect your tax liability to exceed the amount withheld by $100 or more for 1997 or $500 or more for 1998, you are required to file a declaration of estimated tax and make quarterly estimate payments. Taxpayers who fail to file a declaration and pay esti- mated tax are subject to penalty and interest on under- payment. Form OW-8-ES, for filing an estimate, will be supplied on request. If at least 66-2/3% of your gross income is from farming, estimate payments are not required. If claiming this exception, see line 53a.
•3•
H AT S AN X T E N S I ON
A valid extension of time in which to file your Federal return automatically extends the due date of your Oklahoma return if no Oklahoma liability is owed. A copy of the Federal extension must be enclosed with your Oklahoma return. If your Federal return is not extended or an Oklahoma liability is owed, an extension of time to file your Oklahoma return can be granted on Form 504.
90% of the tax liability must be paid by the original due date of the return to avoid penalty charges for late payment. Interest will be charged from the original due date of the return.
L L B OU T E F U N D S
Remember, your return must be signed. Once your return is filed, if you have any questions regarding your refund, please call (405) 521-3146. If you are calling from outside the Oklahoma City area, but within Okla- homa, please call (800) 522-8165, extension 1-3146.
When your original return is timely filed, you may have any amount of overpayment applied to your next yearÕs estimate. Refunds applied to the following yearÕs Oklahoma Estimated Income Tax (at the taxpayerÕs request) may not be adjusted after the original due date of the return.
If you are receiving a refund and you are using the Form 511EZ, be sure to check out the new option of having your refund deposited directly into your checking or savings account. This new option is not available to those who file via Form 511 at this time.
E T P E R AT I N G OS S
Oklahoma NOLs shall be separately determined by reference to Section 172 of the Internal Revenue Code as modified by the Oklahoma Income Tax Act and shall be allowed without regard to the existence of a Federal NOL. Enclose a detailed schedule showing the origin and NOL computation. Residents may use Oklahoma NOL Schedules A, B & C. Also enclose a copy of the Federal NOL computation.
Effective for all tax years beginning after 12/31/95 Oklahoma Net Operating Losses may not be carried back. A Net Operating Loss may be carried forward for a period of time not to exceed 15 years. Title 68 O.S. Supp. 1993 Section 2358 (A) (3).
The Oklahoma NOL allowed/absorbed in the current tax year shall be subtracted on Oklahoma Form 511, line 6 (other subtractions) or Oklahoma Form 511X, line 2.
The Federal NOL allowed/absorbed in the current tax year shall be added on Oklahoma Form 511, line 13 (other additions) or Oklahoma Form 511X, line 6.
H AT F
E E D T O ME N D A E T U R N
If your net income for any year is changed by the IRS, an amended return shall be filed within 1 year. Request and file Form 511X and enclose a copy of the Federal Form 1040X or 1045. Beginning on January 1, 1994, part-year and non-residents shall use Form 511NR. Please enclose a copy of IRS refund or payment, if available, prior to expiration of Statute of Limitations.
OR M
OP OF
S E
T H E
AB E L
Exemption Terms
If you received a booklet+++ with a pre-printed label in the center,
Regular:
please use it. Using the peel-off label in the center of this
The same exemptions as claimed on your Federal return.
booklet will speed the processing of your return. Please place
the label in the address box of your completed form in the
Special:
marked area. If your packet does not contain this feature,
An additional exemption may be claimed for each taxpayer
please print or type the requested information.
or spouse who is 65 years of age or over at the close of the
tax year and who meets the qualifications based on their
I L I N G
T AT U S
filing status and Federal adjusted gross income below:
U
*
+++
(1)
Single return with line 1 equal to $15,000 or less.
Mark the item which indicates your filing status. Please note
that this must match your federal filing status. There is one ex-
(2)
Joint return with line 1 equal to $25,000 or less.
ception to this rule, that being a Joint Federal return where
(3)
Married filing separate return with line 1 equal to
one spouse is a resident and the other spouse is a non-
$12,500 or less.
resident. If this exception applies, see Form 511NR and
instructions.
(4)
Head of household return with line 1 equal to
I X T Y I V E OR V E R
$19,000 or less.
Blind:
FCheck the,box(es) if you +++or your spouseÕs age is 65 on or be-
fore December 31, 1997. If you turned age 65 on January 1,
or spouse who is legally blind.
1998, you are considered to be age 65 at the end of 1997.
If claiming dependents, please enter the same number as on
OCI AL
E CU R I T Y U MB E R
your federal return.
,
.
Please enter your social security+++number. Also, if you are mar-
¥¥ Please note that if you may be claimed as a dependent
ried filing jointly, please enter your spouseÕs social security
on another return, enter zero exemptions for yourself.
number in the space provided.
,X E MPSFT I ON S
-
H AT
B OU T
E CE AS E D
AX P AY E R S
•4•
If a taxpayer died before filing a return for51997, the
/
0
To the right of the+++word ÒYourselfÓ place a number Ò1Ó in all the
executor, administrator or surviving spouse must file a
boxes that apply to you. Then total the boxes in the column la-
return for the decedent. Enter the date of death in the
beled ÒTotal.Ó Then do the same for your spouse if applicable.
address box following the first name of decedent.
The terms for this section are defined to the right.
E L E CT I N E N S T R U CT I ON S
1Federal Adjusted Gross Income
Enter your Federal Adjusted Gross Income from your Federal return. This can be from any one of the following forms: 1040, 1040A, 1040EZ, or Telefile Tax Report.
2Interest on U.S. Government Obligations
If you report interest on bonds, notes and other obliga- tions of the U.S. on your Federal return, this income may be excluded from your Oklahoma Adjusted Gross Income if a detailed schedule is furnished, accompanied with 1099s showing the amount of interest income and the name of the obligation from which the interest is earned. If the interest is from a mutual fund which invests in government obligations, enclose a detailed schedule from the mutual fund showing the amount of monies received from each government obligation or the percentage of funds received from each obligation. Interest from entities such as FNMA & GNMA does not qualify.
3Social Security
Social Security benefits that are included in the Federal Adjusted Gross Income shall be subtracted.
4Oklahoma Government or Federal Retirement
¥You, and/or your spouse, may exclude Retirement benefits, up to $5,500, but not to exceed the amount included in your Federal Adjusted Gross Income. If you retired on disability and the payments you receive are taxed as ordinary income (not retirement benefits) until you reach minimum retirement age, the income taxed as ordinary income does not qualify for this exclusion. The total exclusion from all retirement benefit plans may not exceed $5,500 per taxpayer.
The retirement benefits must be received from the following: the Civil Service of the United States, any component of the Armed Forces of the United States, the Oklahoma Public Employees Retirement System of Oklahoma, the Oklahoma TeacherÕs Retirement System, the Oklahoma Law Enforcement Retirement System, the Oklahoma Firefighters Pension and Retirement System, the Oklahoma Police Pension and Retirement System, the Employee retirement systems created by counties pursuant to Sections 951 et seq. of Title 19 of the Oklahoma Statutes, the Uniform Retirement System for Justices and Judges, the Oklahoma Wildlife Conserva- tion Department Retirement Fund, the Oklahoma Em- ployment Security Commission Retirement Plan, or the Employee retirement systems created by municipalities pursuant to Sections 48 - 101 et seq. of Title 11 of the Oklahoma Statutes. Enclose a copy of Form 1099R.
¥U.S. Railroad Retirement Board benefits that are included in the Federal Adjusted Gross Income may be excluded.
5Other Retirement Income
You, and/or your spouse, if you are 65 years of age or older and your income does not exceed the limits in the worksheet (at right), may exclude retirement benefits, up to $1,100, but not to exceed the amount included in your
Federal Adjusted Gross Income. If you retired on disability and the payments you receive are taxed as ordinary income (not retirement benefits) until you reach minimum retirement age, the income taxed as ordinary income does not qualify for this exclusion. The total exclusion from all retirement benefit plans may not exceed $1,100 per taxpayer. Any individual who claims the exclusion for government retirees on line 4 may not claim a combined total exclusion for both lines 4 and 5 in an amount exceeding $5,500.
The retirement benefits must be received from the following and satisfy the requirements of the Internal Revenue Code (IRC): an employee pension benefit plan under IRC section 401, an eligible deferred compensation plan under IRC section 457, an individual retirement account, annuity or trust or simplified employee pension under IRC section 408, an employee annuity under IRC section 403 (a) or (b), United States Retirement Bonds under IRC section 86, or lump-sum distributions from a retirement plan under IRC section 402 (e). Enclose a copy of Form 1099 or other documentation.
The worksheet below should be retained for your records.
O
T H E R
E T I R E ME N T N COME
OR K S H E E T
Q
V
X
Please complete the following worksheet to find if you are eligible for the retirement exclusion. Before you begin, you must complete lines 7-13 of your Form 511, if they apply to you. Upon completing these lines, you then fill in the section below. Please retain this worksheet for your records.
1. Add the amounts on lines 1, 11,12 and 13 from your Form 511.
2.Add the amounts, if any, on lines 2, 3, 4, 6 and 9
from your Form 511.
=
T OT AL
3.Subtract the amount on line 2 (above) from line 1
If this total is $25,000 or less and you are at least 65 years of age with a filing status of single, head of household or married filing separately, then you qualify for the up to $1,100 exclusion.
If this total is $50,000 or less and you are at least 65 years of age with a filing status of married filing jointly or qualify- ing widow, then you qualify for the up to $1,100 exclusion.
If you do not meet either of the above described circum- stances, you do not qualify.
Remember, the amount of the exclusion is up to $1,100, but it cannot exceed the amount included in your Federal Adjusted Gross Income.
(instructions continued on page 6)
•5•
6
Other Subtractions
d. Any other evidence which you believe supports your
Enter in the box on Part I, line 6, the appropriate number
claim that you meet all of the criteria for exemption
as listed below, which shows the type of income you are
from income tax.
subtracting. If you are entitled to more than one type of
All information to support your claim for refund must be
deduction, enter the number Ò7.Ó
Enter the number “1” if the following applies:
attached to your return.
Oklahoma depletion on oil and gas well production, at
Enter the number “6” if the following applies:
Historical Battle Sites: There shall be a deduction,
the option of the taxpayer, may be computed at 22% of
gross income derived from each Oklahoma property
limited to 50% of the capital gain, if you sell to the State
of Oklahoma any real property which was the site of a
during the taxable year. Major oil companies, as defined
historic battle during the nineteenth century and has
in Section 288.2 of Title 52 of the Oklahoma Statutes,
when computing Oklahoma depletion shall be limited to
been designated a National Historic Landmark.
(O.S. Title 68, Section 2357.24)
50% of the net income (computed without the allowance
for depletion) from each property. Any depletion deduc-
Enter the number “7” if the following applies:
tion allowable is the amount so computed minus Federal
Allowable deductions not included in (1) through (6):
depletion claimed. If Oklahoma options are exercised,
enter any allowable deductions from Federal Adjusted
the Federal depletion not used due to the 65% limit may
Gross Income to arrive at Oklahoma Adjusted Gross
not be carried over. A lease bonus received is consid-
Income that were not previously claimed under this
ered income subject to depletion. If depletion is claimed
heading ÒOther Subtractions.Ó Enclose a detailed
on a lease bonus and no income is received as a result
explanation and verifying documents.
of non-producing properties, see line 13. A complete
schedule by property must be furnished.
If you are entitled to more than one type of deduc-
Enter the number “2” if the following applies:
tion under “Other Subtractions”, enter the number
“7” in the box on Part 1, Line 6.
Oklahoma Net Operating Loss: Enter carryover(s) from
previous years. See the preceding net operating loss
Out of State Income
section on page 4. Also see line 13.
This is income from real or tangible personal property or
Enter the number “3” if the following applies:
business income in another state. This includes partner-
ship gains and gains sustained by Subchapter S Corpo-
Royalty income earned by an inventor.
rations attributable to other states. It is not interest,
(Section 5064.7.A.1 of Title 74)
Enter the number “4” if the following applies:
installment sale interest, dividends, salary, pensions or
income from personal services. (See instructions for line
Manufacturers exclusion.
46.) Furnish detailed schedule and copy of Federal
(Section 5064.7.A.2 of Title 74)
return.
Enter the number “5” if the following applies:
State and Municipal Bond Interest
Exempt Tribal Income: If the tribal memberÕs principle
If you received income on bonds issued by any state or
residence is on ÒIndian CountryÓ, the income from
political subdivision thereof, exempt from Federal
employment or work performed on ÒIndian CountryÓ may
taxation but not exempt from taxation by the laws of the
be deducted. Legally acknowledged ÒIndian CountryÓ
State of Oklahoma, the total of such income shall be
must be within the jurisdiction of the tribe of which he or
added to Federal Adjusted Gross Income. Income from
she is a member. All claimants must provide sufficient
Oklahoma Municipal Bonds is exempt only if so provided
information to support that these requirements have
by the statute authorizing their issuance. All out of state
been satisfied.
municipals are taxable. Enclose a schedule of all
The information which is necessary to determine your
municipal interest received by source and amount.
entitlement to exempt income:
a. A copy of your Certificate of Degree of Indian Blood
Out of State Losses
card issued by the Bureau of Indian Affairs which
If you incurred losses from the operation of an out of
states your tribal membership; and
state business, or from the rental or sale of out of state
b. A copy of the trust deed, or other legal document,
property, any such losses must be added back to
which describes the real estate upon which you
Federal Adjusted Gross Income. This includes partner-
maintain your principle place of residence and which
ship losses and losses sustained by Subchapter S
is an Indian allotment, restricted, or held in trust by
Corporations attributable to other states.
the United States; and
13
c. A copy of the trust deed which describes the real
Other Additions
estate upon which you are employed or perform
A. Lump sum distributions not included in the Federal
work and which is held by the United States of
Adjusted Gross Income (except any amount excluded on
America in trust for a tribal member or an Indian
Federal Schedule D) shall be added to the Federal AGI.
tribe or which is allotted or restricted Indian land.
Rollovers are taxed in the same year as on the Federal
Also, a copy of employment or payroll records which
return. Enclose a copy of Forms 1099, and complete
show you are employed by a tribal employer on that
copy of Federal return.
Indian country or an explanation of your work on
(instructions continued on page 7
Indian country; and/or
following the tax tables)
•6•
Other Additions ¥ continued from page 6...
B.Federal Net Operating Loss: Enter carryover(s) included on Federal Form 1040. See preceding net operating loss section on page 4. Also see line 6.
C.Enter depletion claimed on a lease bonus if no income is received as a result of non-producing proper- ties. Such depletion must be restored in the year the lease expires. A complete schedule by property must be furnished.
15Deductions
To claim itemized deductions on your Oklahoma return, you must have claimed itemized deductions on your Federal return. Otherwise, enter your Oklahoma standard deduction which is determined as follows:
If you are married filing separate, enter the larger of $500 or 15% of line 14, not to exceed $1,000.
All other filing statuses:
¥If line 14 is $6,666 or less, enter $1,000.
¥If line 14 is $13,333 or more, enter $2,000.
¥If line 14 is between $6,666 and $13,333, multiply line 14 by 15% and enter that result.
16Exemptions and Dependents
Oklahoma allows $1,000 for each exemption and dependent.
18Proration of Exemptions and Deductions
If you have income from out of state, your exemptions and deductions must be prorated on the ratio of Okla- homa Adjusted Gross Income to Federal Adjusted Gross Income reduced by allowable adjustments other than out of state income.
20Federal Tax Deduction
Compute Federal Income Tax deduction as follows:
On Federal Form 1040:
Add lines 43 and 53. Then
subtract lines 47, 49, 51 & 52.
On Federal Form 1040A:
Line 25.
On Federal Form 1040EZ:
Line 10.
On Federal Telefile Tax record: Line J.
Do not use the amount reported on your Form(s) W-2.
21Proration of Federal Taxes
Federal income taxes are deductible only to the extent they relate to income subject to taxation in Oklahoma. Federal Income Tax as computed for line 20 must be prorated on the ratio of Oklahoma Adjusted Gross Income to the Federal Adjusted Gross Income.
23Child Care Credit
If you are allowed a credit for child care expenses on your Fed- eral return, there shall be allowed a credit against the Okla- homa tax equal to 20% of the credit for child care expenses al- lowed by the IRS code. The Federal credit cannot exceed the amount of your Federal Tax. The credit determined on line 23 must be prorated on the ratio of Oklahoma AGI to Federal AGI and the credit cannot exceed your tax. Enclose a copy of Fed- eral Form 2441 and page 2 of Form 1040 or Form 1040A, in- cluding Schedule 2.
28Partial Military Pay Exclusion
Members of any component of the Armed Forces, except retired, may exclude the first $1,500 of active pay including Reserve and National Guard pay. Retired military see instructions for line 4.
29Qualifying Disability Deduction
If you have a physical disability constituting a substan- tial handicap to employment, you may deduct the expense incurred to modify a motor vehicle, home, or work place necessary to compensate for the disability. Please enclose a schedule detailing the expenses incurred and a description of the physical disability with documentation regarding the Social Security Administra- tion recognition and/or allowance of this expense.
30Political Contribution
If you contributed money to a political party or candidate for political office, you may deduct the amount contrib- uted up to a maximum of $100 ($200 if a joint return is filed).
31Interest Qualifying for Exclusion
You may partially exclude interest received from a bank, credit union or savings and loan association located in Oklahoma. The total exclusion for interest claimed on your State return cannot exceed $100 ($200 if filing jointly even if only one spouse received interest in- come).
32Qualified Medical Savings Account Contributions made to and interest earned from an Oklahoma medical savings account established, pursu- ant to O.S. Title 63, Sections 2621 through 2623, shall be exempt from taxable income. In order to be eligible for this deduction, contributions must be made to a medical savings account program approved by either the State Department of Health or the Insurance Commis- sioner. A statement of the contributions made to and interest earned on the account must be provided by the trustee of the plan, and enclosed as part of the filed return. This is not on your W-2.
33Qualified Adoption Expense
An Oklahoma resident may deduct ÒNonrecurring adoption expensesÓ not to exceed $10,000 per calendar year (O.S. Title 68, Section 2358). Expenses are to be deducted in the year incurred. ÒNonrecurring adoption expensesÓ means adoption fees, court costs, medical expenses, attorney fees and expenses which are directly related to the legal process of adoption of a child. Enclose a schedule describing the expenses claimed.
34Agricultural Commodity Processing Facility Exclusion
Owners of agricultural commodity processing facilities may exclude 15% of their investment in a new or ex- panded agricultural commodity processing facility located within Oklahoma (O.S. Title 68 Section 2358). Agricultural commodity processing facility means building, structures, fixtures and improvements used or operated primarily for the processing or production of agricultural commodities to marketable products. The
•7•
(instructions continued on page 8)
Agriculural Commodity Processing
Facility Exclusion • continued from page 7 investment is deemed made when the property is placed in service. Under no circumstances shall th s exclusion lower your taxable income below zero. In the eve t the exclusion does exceed income, any unused portion may be carried over for a period not to exceed 6 years.
A schedule must be enclosed showing the type of investment(s), the date placed in service, and the cost. If the total exclusion available is not used, a copy of the schedule must be enclosed in the carryover year and show the total exclusion available, the amount previ- ously used and amount available in the carryover year. If the exclusion is through a Partnership or Subchapter S Corporation, the schedule must also include the partnershipÕs or Subchapter S CorporationÕs name and ID number and your pro-rata share of the exclusion.
35Depreciation Adjustment for Swine or Poultry Producers
Individuals who are swine or poultry producers may deduct depreciation on an accelerated basis for new construction or expansion costs for assets placed in service after December 31, 1996. The same deprecia- tion method elected for Federal income tax purposes will be used, except the assets will be deemed to have a 7 year life. Any depreciation deduction allowable is the amount so computed minus the Federal depreciation claimed. Enclose a copy of the Federal depreciation schedule and a computation of the accelerated Okla- homa depreciation.
40Tax Method I
Using line 39, find your tax in Tax Table 1 (pages A-F). Enter the result here.
43Tax Method II
Using line 42, find your tax in Tax Table 2 (pages G-L). Enter the result here.
44Oklahoma Income Tax
Your Oklahoma income tax liability is the lower of Method I or Method II. Enter the lower of line 40 or line 43. This is your Oklahoma Income Tax.
46Credit for Tax Paid to Another State
If you receive income for personal services from another state, you must report the full amount of such income on your Oklahoma return. If the other state also taxes the income, a credit is allowed on Form 511. Complete Oklahoma Schedule E and furnish a copy of the other state(s) return.
47Oklahoma Investment/New Jobs Credit Individuals engaged in manufacturing or processing (including partnership or Sub-S pass through) who are entitled to Oklahoma Investment/New Jobs credit, see Form 506. (This has no relationship to your Federal Targeted Jobs credits).
48Oklahoma Agricultural Producers Credit Oklahoma agricultural producers who invest in Okla- homa producer-owned agricultural processing coopera- tives, ventures or marketing associations and are entitled to the Oklahoma agricultural credit, see Form 520.
49Other Credits
Please review Form 511CR for other available credits.
AOklahoma Estimated Tax Payments Enter any payments you made on your estimated Oklahoma income tax for 1997. Include any overpay- ment from your 1996 return that you applied to your 1997 estimated tax.
If at least 66-2/3% of your gross income is from farming, estimate payments are not required. If claiming this exception, you must mark the box on this line and enclose a complete copy of your Federal return.
BPayments with Extension
If you filed Oklahoma extension Form 504 for 1997, enter any amount you paid with that form.
54Health Insurance Credit
This is for employers only. Please enclose Form 534.
55Credit 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.
56Sales Tax Relief/Credit
Any resident individual who is domiciled and lives in this state for the entire calendar year and whose gross household income for such year does not exceed
$12,000 may file a claim for sales tax relief. Fill out and enclose Form 538-S if you qualify for this credit.
The Oklahoma Department of Human Services will make the sales tax refund to persons who have continuously received aid to the aged, blind, disabled or Medicaid payments for nursing home care from January 1, 1997 to December 31, 1997. Persons who have received tempo- rary assistance for needy families (T.A.N.F.) for any month in the year of 1997 are not eligible for the sales tax refund.
A person convicted of a felony shall not be permitted to file a claim for sales tax relief for any year for which that person is an inmate in the custody of the Department of Corrections for any part of that year.
(instructions continued on page 9)
•8•
CON T I N U E D
60Oklahoma Wildlife Diversity Program,
61 Low Income Health Care Fund,
62Veterans Affairs Capital Improvement Program,
and Oklahoma Breast Cancer Program
63 If you wish to donate from your refund, you must check and enter the amount on these lines. Please note that this reduces your refund if you choose to donate. The donation will be forwarded to the appropriate agency.
¥¥ The Oklahoma Wildlife Diversity Program (formerly Nongame Wildlife Program) is funded primarily by concerned Oklahomans. All donations provide for a variety of projects, including research on Texas horned lizards and other rare wildlife, wildlife observation activities such as winter Bald Eagle Tours and spring Watchable Wildlife Weekends, statewide educational workshops, informational brochures and posters, and management of a bat cave purchased with previous program donations. If you are not receiving a refund, you may still support Oklahoma wildlife by sending a donation to:
Wildlife Diversity Program
1801 N. Lincoln
Oklahoma City, OK 73105.
¥¥ Oklahomans helping each other is what the Indigent (Low Income) Health Care Fund is all about. Donations made to the fund are used to help provide medical and dental care for needy children and families. Every dollar you donate goes directly for health care costs. If you are not receiving a refund, you may contribute toward indigent health care by sending a donation to:
Oklahoma Department of Human Services Revenue Processing Unit
Re: Indigent Health Care Revolving Fund P.O. Box 25352, Oklahoma City, OK 73125.
¥¥ You may donate from your tax refund to help the Department of Veterans Affairs to purchase equipment and develop capital improve- ment projects and to acquire properties for expanding or improving existing projects.
¥¥ If you wish to donate from your tax refund for Oklahoma Breast Cancer Research, enter the amount on line 63. The donation will be forwarded to the Advancement of Science and Technology for Breast Cancer Research.
67Estimated Tax Penalty and Interest
To avoid the Estimated Tax Penalty and Interest, estimated tax payments, timely filed, and withholdings are required to be equal to 70% of the current year tax liability or equal or exceed 100% of your prior year tax liability. If you do not meet one of the above exceptions, you may complete Form OW-8-P, or the Oklahoma Tax Commission will figure the penalty and interest for you, and send you a bill.
68Delinquent Penalty and Interest
After the original due date of the return compute 5% penalty on the tax due (line 66). Compute interest on the tax due at 1 1/4% per month from original due date of the return. An extension does not extend the date for payment of tax.
Title 68, Oklahoma Statutes, provides that any term used in this Act shall have the same meaning as when used in a comparable context in the Internal Revenue Code, except when specifically provided for in the Oklahoma Statutes or rules.
N CE OU AV E OMP L E T E D OU R E T U R N
}When you~havecompleted your form,~ please seethe section entitled, “When You Are Finished” on page 11 of this booklet. This section contains information about enclosing the correct documents in the included envelope.
If you are receiving a refund, also read the above mentioned section, but also read the section entitled, “All About Refunds” on page 4.
✃
I S COV E R ¨
AR D AY ME N T
U T H OR I Z AT I ON
Expiration Date
Discover¨ Card Number
Month
Year
Payment for
(Specify Òincome taxesÓ or other tax type)
First Name
Middle Initial
Last Name
FEIN or Social Security Number
I understand that in addition to the tax balance due, there will be a handling fee of 1.70% charged to my Discover¨ Card, as authorized by O.S. 1994 Title 68, Section 218.
Taxpayer Signature
Date
Must be signed only by Card Member.
Total Payment
•9•
OP OF OR M N S T R U CT I ON S
If you received a booklet with a pre-printed label in the center,
The same exemptions as claimed on your federal return.
please print or type neatly the requested information.
Mark the box whichindicates your filing status. Please note
I X T Y
I V E OR V E R
Check the box(es) if you or your spouseÕs age is 65 on or be-
Please enter your social securitynumber. Also, if you are mar-
ried, whether you are filing jointly or separately, please enter
your spouseÕs social security number in the space provided.
H AT B OU T E CE AS E D AX P AY E R S
X E MP T I ON S
If a taxpayer died before filing a return for£1997, the
To the right of theword ÒYourselfÓ place a number Ò1Ó in all the
The
termsfor this sectionare defined to the right.
(Form¡
511EZ line¢by line instructions on page 11)
R I T E AN D
AL AN CE
R E OU I R E D OF
R I T I N G
L L
H OS E
H E CK S
The Oklahoma Tax Commission accepts Discover¨ Card for payment of all tax types. All you need to do is fill out a Form
540:Discover¨ Card Payment Authorization Form, sign it and send it in with your tax documents. ItÕs that easy!
See page 9 for a copy of Form 540. Just one easy form and you are done!
No more endless writing and balancing.
Discover¨ the difference.
•10•
Filing your state taxes can be a task that seems daunting at first, but with a clear set of instructions and a bit more understanding of the steps involved, this necessary civic duty can be completed with confidence. As you prepare to fill out your Oklahoma State Tax form, remember that it's imperative to first complete your Federal income tax return, as the details from your Federal return will directly influence your State return. Also, don't forget to round all values to the nearest dollar, making the process smoother. Below, you'll find step-by-step instructions tailored to guide you through filling out the Oklahoma State Tax form effectively.
Once you have mailed your return, you have completed the filing process for the Oklahoma State Tax return. Keep copies of your filed return and any correspondence for your records. Should you have questions or need assistance, the Oklahoma Tax Commission provides resources and contact information to support you. Take a step-by-step approach, and you'll find that completing your state tax return is an achievable task.
What is the filing deadline for Oklahoma State Tax Returns?
The filing deadline for Oklahoma State Tax Returns is April 15, 1998. Returns must be postmarked by this date. To avoid any penalties or interest charges, make sure to either submit your tax return by this deadline or file for an extension using Form 504.
Can I pay my Oklahoma state taxes with a credit card?
Yes, you can pay your Oklahoma state taxes with a Discover® Card. To do so, you'll need to complete and submit Form 540, which is the Discover Card Payment Authorization Form. This option provides a convenient way to fulfill your tax obligations directly.
How can I get a refund directly deposited into my bank account?
If you're expecting a refund and have used the 511EZ form, you can opt for direct deposit into your bank account. This new feature allows for a faster and more secure way to receive your refund. Simply follow the instructions related to direct deposit when completing your tax form. Note that this option is currently not available for the Form 511 filers.
What if I need to amend a previously filed Oklahoma state tax return?
If you need to amend an Oklahoma state tax return due to changes in your net income or for any other correction, you must file Form 511X. This includes situations where your net income was adjusted by the Internal Revenue Service (IRS). Make sure to include a copy of the Federal Form 1040X or 1045 if applicable, and file the amendment within one year of the change. For amendments prior to January 1, 1994, part-year and non-residents should use Form 511NR.
When filling out the Oklahoma State Tax form, folks often rush through the process, which can lead to a variety of mistakes. To ensure accuracy and avoid potential issues with your tax return, it’s important to be aware of common pitfalls. Here is a list of eight common mistakes people make:
Attention to detail can save a lot of headache down the road. By avoiding these common mistakes, you can ensure your Oklahoma State Tax Form is filled out accurately and efficiently, paving the way for a smoother tax season.
Filing your Oklahoma State Tax form involves more than just completing the form itself. There are several other documents and forms that you might need to use alongside your tax return. Here's a brief overview of each to help ensure you're well-prepared:
Each of these documents plays a vital role in ensuring your Oklahoma State Tax filing is complete and accurate. Whether you're an employee, self-employed, residing out-of-state, or seeking an extension, the correct use of these forms and documents can provide significant help in navigating the tax season. Always make sure to consult the most current forms and instructions provided by the Oklahoma Tax Commission for any updates or changes.
The Oklahoma State Tax form packet, which includes the 511 and 511EZ forms, shares similarities with the Federal Tax Return forms, such as the 1040, 1040A, and 1040EZ forms. Both sets of forms are designed for individuals to report their annual income and calculate the amount of tax owed or refund due. They require the taxpayer's income details, deductions, credits, and personal information. Much like the federal forms, the Oklahoma State forms offer both a standard and a simplified version (511 and 511EZ, respectively) to accommodate different financial situations, just as the federal forms offer the 1040EZ for simpler tax situations and the 1040 for more complex ones.
Similar to the 540 form in the Oklahoma packet, meant for Discover Card payment authorization, the Federal Tax forms often include additional forms for specific payment or processing instructions. For example, the IRS has Form 1040-V, which is a payment voucher used alongside the main income tax form if individuals need to send a check or money order for their tax payment. These ancillary forms complement the main tax filing documents by providing structured options for fulfilling tax obligations besides electronic payments.
The instructions provided in the Oklahoma State Tax form packet for utilizing new options, like direct deposit, mirror those found in federal instructions for direct deposit of refunds. The IRS also encourages direct deposit for federal tax refunds through their forms and instructions, outlining how to provide banking details for this purpose. This system benefits taxpayers by offering a faster, more secure method of receiving refunds compared to traditional checks and is reflective of both tax authorities' efforts to streamline and secure the refund process.
The Oklahoma State Tax forms' requirement for taxpayers to complete their Federal income tax returns before starting the state returns is also a point of similarity. This process ensures that information reported on the state level is consistent with what has been filed federally, since many elements of the state tax calculation are derived from the federal return. For instance, adjustments to the Federal Adjusted Gross Income might affect state tax owed or refundable amounts. This interconnectedness highlights the dependency of state tax systems on federal tax filings and underscores the integrated nature of United States tax administration.
Filling out your Oklahoma State Tax forms accurately is essential to ensure you meet your tax obligations and avoid potential penalties. Here is a list of dos and don'ts to guide you through the process:
Many folks have misunderstandings about the Oklahoma State Tax form. It's crucial to clear up these misconceptions so that taxpayers can file their taxes accurately and confidently. Here are nine common misconceptions and the truths behind them:
Truth: Oklahoma provides specific forms for non-residents or part-year residents, such as the 511NR form. This allows individuals who lived in Oklahoma for a portion of the year, or earned income from Oklahoma sources while living out of state, to file correctly.
Truth: The Oklahoma tax booklet includes detailed instructions for both the 511 and 511EZ forms, as well as guidance on how to utilize the direct deposit option for refunds.
Truth: Most residents with enough gross income to require a federal tax return also need to file an Oklahoma return. Non-residents with Oklahoma source income totaling $1,000 or more must also file an Oklahoma return.
Truth: When completing your Oklahoma return, you should round all amounts to the nearest dollar, improving ease and simplifying calculations.
Truth: Oklahoma state tax returns are due by April 15, coinciding with the federal tax deadline, unless an extension is filed using Form 504.
Truth: Oklahoma allows exclusions for certain types of retirement income, such as civil service, military, and Oklahoma government pensions, up to specified limits.
Truth: Oklahoma taxpayers have the option to file their taxes electronically, either through authorized tax preparer locations or other online services.
Truth: Although the direct deposit option for refunds is highlighted for the 511EZ form in the packet, filers using the 511 form can also elect for direct deposit by following the appropriate instructions.
Truth: Under the Soldiers’ and Sailors’ Civil Relief Act, military personnel can retain their Oklahoma residency for tax purposes, even when stationed outside the state. The same can apply to their spouses.
Understanding these truths can help taxpayers navigate their Oklahoma State Tax returns more efficiently, ensuring compliance and taking advantage of benefits specific to Oklahoma tax law.
When preparing and filing the Oklahoma State Tax form, residents, part-year residents, and non-residents must adhere to specific guidelines and deadlines to ensure proper handling and processing of their tax returns. Here are key takeaways:
Moreover, understanding the residency definitions is crucial for correctly filing your tax returns. The Oklahoma Tax Commission distinguishes between full-year residents, part-year residents, and non-residents, each with specific filing requirements and eligibility criteria for tax benefits or obligations.
Lastly, it's essential to complete your federal income tax return before starting your Oklahoma tax return because information from the federal return is needed. Correct rounding of amounts to the nearest dollar is necessary to avoid discrepancies.
Oklahoma Affidavit of Heirship - An affidavit providing a comprehensive list of surviving heirs, their entitlements, and a declaration that no conflicting legal claims on the estate exist, specific to Oklahoma law.
Oklahoma Tax Extension 2022 - By following the detailed instructions on Form 504, taxpayers can avoid common mistakes that lead to rejected extensions.