The Oklahoma State Tax form is a crucial document for residents, part-year residents, and non-residents who have income to report to the state of Oklahoma. It includes various forms such as the 511 and 511EZ for residents, and the 511NR for non-residents, alongside detailed instructions for completion and guidelines for direct deposits and payments. It's imperative for filers to complete their federal income tax returns prior to tackling their Oklahoma state taxes, ensuring all information is accurate and rounded to the nearest dollar as outlined in the instructions. Ready to ensure your Oklahoma State Tax form is filled out correctly? Click the button below to get started.
The Oklahoma State Tax Commission's commitment to facilitating the task of filing state taxes for residents is evident in the comprehensive overhaul and publication of their 1997 income tax forms and instructions. With the target to ease the process, they introduced several notable elements, including distinct forms like the 511 and 511EZ, catering respectively to individuals with complex and straightforward financial backgrounds; and a specific form, the 540, designed for those opting to pay taxes through Discover Card. Additionally, the introduction of a direct deposit option for refunds underlines their focus on modernizing and simplifying tax return procedures. A pivotal step prior to delving into state tax paperwork involves completing the federal income tax return, a process that helps lay the groundwork for the state forms by providing crucial financial data. The guide meticulously explains eligibility criteria for each form, ensuring taxpayers can navigate towards the document that best aligns with their fiscal situation, whether they're full-year residents, part-year residents, or non-residents. Emphasis is also placed on the importance of consulting the detailed instructions provided to avoid common pitfalls, underlining the state’s intention to assist taxpayers in adhering to the filing deadline, April 15, 1998, while leveraging opportunities such as the allotted tax deductions and credits uniquely available to Oklahomans.
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•
After preparing your Federal income tax return, the next step is to tackle your Oklahoma State tax return. This task can seem daunting at first, but by breaking the process down into manageable steps, you can efficiently complete your Oklahoma tax forms. The packet you received includes everything necessary to file your income tax for the state of Oklahoma, whether you opt for the standard 511 form or the simpler 411EZ form. Carefully read through the included instructions to select the right form for your situation. Below are the detailed steps to help you fill out the Oklahoma tax form accurately.
By following these steps carefully and reading all instructions provided, completing your Oklahoma State Tax Form can be a straightforward process. Remember to double-check your work for accuracy and completeness to prevent delays in processing your return.
When is the deadline to file my Oklahoma state tax return?
The filing deadline for Oklahoma state tax returns is April 15, following the end of the tax year. If you're unable to file by this date, you may use Form 504 to file for an extension. However, remember that filing for an extension does not extend the time to pay any tax due. To avoid any penalties or interest charges, at least 90% of the tax liability must be paid by the original due date.
Which form should I use for filing my Oklahoma income taxes?
Oklahoma provides different forms depending on your residency status and the complexity of your return. Residents with a simple tax situation may use Form 511EZ. The longer Form 511 is intended for residents with more detailed tax situations, such as multiple deductions or exclusions. Part-year residents or non-residents with income from Oklahoma sources must use Form 511NR. To determine the best form for you, consider whether you are a full-year resident, part-year resident, or non-resident, and whether you need to itemize deductions or claim specific credits.
How can I receive assistance with filing my Oklahoma tax return?
The Oklahoma Tax Commission offers several avenues for assistance. You can:
How can I check the status of my Oklahoma tax refund?
If you're expecting a refund and want to check its status, you can call (405) 521-3146 if you're within the Oklahoma City area. If you're calling from outside Oklahoma City but within the state, dial (800) 522-8165, extension 1-3146. Ensure your return was signed and filed correctly, and remember processing times can vary.
Filling out the Oklahoma State Tax form can be a complex task, and it's easy for people to make mistakes. Below are seven common errors that individuals may encounter when completing their state tax returns:
Avoiding these mistakes not only ensures a smoother processing of your Oklahoma State Tax return but also helps in securing any refunds faster. Always double-check your form before submission and refer to the provided instructions for clarity.
When preparing your Oklahoma State Tax return, it's essential to have all the necessary forms and documents at hand. Beyond the primary tax forms, several additional documents are often used to ensure the accuracy and completeness of your tax filing. Each of these documents serves a specific purpose in the broader context of state tax preparation.
Properly completed and organized, these documents facilitate a smoother tax filing process. They provide the detailed information required to ensure that every taxpayer meets their obligations while also taking advantage of eligible benefits and deductions. Keeping these documents readily available can significantly expedite the preparation of your Oklahoma State Tax return.
The Federal income tax form shares numerous similarities with the Oklahoma State Tax form, particularly regarding the structure and informational requirements. Both forms require taxpayers to report their income, calculate allowable deductions and credits, and determine the amount of tax due or refund owed. They start with the taxpayer's gross income, allow for deductions to arrive at taxable income, and then apply the tax rate to determine the tax liability. The necessity to complete the Federal return before the Oklahoma State return highlights the dependency of state tax calculations on federal tax information, as adjustments to Federal Adjusted Gross Income are also considered in state tax computations.
Form W-2 or 1099 mirrors the Oklahoma State Tax form in its function of reporting income. These forms are essential for taxpayers when completing both their Federal and Oklahoma tax returns. Like the Oklahoma form, they provide critical information such as the amount of income earned and taxes withheld, which taxpayers need to accurately report their income and calculate their tax liability or refund. The requirement to attach copies of Form(s) W-2 or 1099 with the Oklahoma return underscores the interconnectedness of these documents in the tax filing process.
The 1099-INT form, which reports interest income, is analogous to parts of the Oklahoma State Tax form that address income from interest. Taxpayers must report the same interest income on both their federal and state tax returns, underscoring the relevance of this form. The Oklahoma State Tax form's section for adjusting income to include or exclude specific types of earnings, like interest from U.S. Government obligations, reflects the tailored approach to state tax liabilities, similar to how interest income is treated differently across various tax documents.
The Oklahoma Form 504, used for filing an extension, shares a connection with the main Oklahoma State Tax form through their joint purpose in the tax reporting process. Just like the tax form itself, Form 504 is integral for taxpayers who need additional time to file. The provision that having a valid extension for the Federal return automatically extends the state filing deadline if no Oklahoma tax liability is owed, demonstrates the interplay between different tax documents and the flexibility provided to taxpayers in managing their filing responsibilities.
Lastly, the Oklahoma Estimated Income Tax form (OW-8-ES) bears a resemblance to the Oklahoma State Tax form in terms of planning for future tax liabilities. This form is used by taxpayers who expect to owe at least $100 more than their withholdings and credits cover for the tax year. The process of estimating future tax mirrors the foundational principle of the main tax form - to reconcile estimated taxes paid throughout the year with actual income, thus ensuring taxpayers are neither under nor overpaying their tax dues.
Filling out your Oklahoma State Tax form accurately is essential for ensuring your tax obligations are met correctly. Consider the following dos and don'ts to help you complete the form efficiently and accurately:
By following these guidelines, you can ensure a smoother tax filing experience and avoid common pitfalls that delay processing and potentially result in unwanted penalties.
There are common misconceptions about the Oklahoma State Tax form that need to be clarified to assist taxpayers in accurately completing their tax returns:
Every Oklahoma resident needs to file a Form 511 or 511EZ: Not all residents may need to file these forms. The requirement to file depends on the resident's gross income, filing status, and other specific financial situations. For instance, if one's income consists solely of municipal interest exempt from federal taxation and falls below a certain threshold, they may not need to file.
Form 511EZ is for simpler tax situations only: Although Form 511EZ is designed for simpler filings, taxpayers may also use it if they meet certain criteria regarding their adjusted gross income, regardless of the complexity of their financial situation. It is important to review the qualifications for each form thoroughly.
Non-residents cannot use Oklahoma forms: Non-residents with Oklahoma source income of $1,000 or more are required to file using Form 511NR. This applies even if they do not reside in Oklahoma but have earned income from Oklahoma sources.
Direct deposit is available for all filers: As of the information provided, the option to have a refund deposited directly into a bank account is available only to filers using Form 511EZ. Those filing with other forms will need to receive their refunds through other means.
Electronic filing isn't offered: Oklahoma offers electronic filing options. Taxpayers are encouraged to file electronically for faster processing. This service can be accessed through authorized tax preparers or possible online services.
Interest from all government obligations is exempt: While interest from certain U.S. government obligations may be excluded from Oklahoma gross income, not all government-related interest is exempt. Detailed schedules and proper documentation must be provided for the exemption.
Every taxpayer must physically mail in their Oklahoma tax return: While mailing in a tax return is one option, Oklahoma provides various ways to submit tax returns, including electronic filing. Taxpayers should consider all available filing methods to determine the most convenient and efficient method for their circumstances.
Understanding these misconceptions can help guide Oklahoma taxpayers through the process of accurately completing and submitting their state tax returns.
Filling out and using the Oklahoma State Tax form comes with its own set of rules and benefits. Understanding these can make the whole process smoother and potentially more advantageous. Here are seven key takeaways for anyone navigating their state taxes in Oklahoma.
Lastly, remember that assistance is available. Whether you're confused about which form to use, how to claim an exemption, or any other detail related to your Oklahoma State Tax form, the Oklahoma Tax Commission and its resources can provide guidance. Don’t hesitate to reach out for help to make sure your tax filing is as beneficial and stress-free as possible.
Lawton Correctional Facility Visitation - Prepping for your visit involves more than filling out the form; reading through the accompanying visitor rules is essential for a smooth experience.
Oklahoma Reseller Permit - Ensure accurate recording of the purchase period for audit purposes.
Orec - Conditions under which the buyer or seller can cancel the contract provide clear exits if terms are not met.