Oklahoma Individual Resident Income Tax Return Packet (instructions, forms and tables)

Individual Resident Income Tax Return Packet (instructions, forms and tables)
2023 Form 511 Oklahoma Resident Individual Income Tax Forms Packet & Instructions
2023 Oklahoma
Resident Individual
Income Tax Forms
and Instructions
This packet contains:
	 •	 Instructions for completing the Oklahoma Resident Income Tax Return Form 511
	 • 	Oklahoma Resident Income Tax Return Form 511
	 • 	Sales Tax Relief Credit Form 538-S
	 • 	Instructions for the Direct Deposit option
	 • 	2023 Income Tax Tables
Filing date:
	 • 	Generally, your return must be postmarked by April 15, 2024. For additional information,
see the “Due Date” section on page 4.
	

• This form is also used to file an 	amended return. See page 6.

Want your refund faster?
	 • See page 41 for direct deposit information.

2023 OKLAHOMA RESIDENT INDIVIDUAL INCOME TAX PACKET

2-D Barcode Information

TABLE OF CONTENTS
Resident Defined...........................................................................3
Resident Income...........................................................................4
Due Date.......................................................................................4
Extensions.....................................................................................4
Who Must File...............................................................................4
Determining Your Filing Requirement............................................5
Estimated Income Tax...................................................................5
Net Operating Loss.......................................................................5
Refunds.........................................................................................6
Amended Returns.........................................................................6
Top of Form Instructions............................................................ 7-9
Form 511: Select Line Instructions.......................................... 9-16
Schedule 511-A Instructions.................................................. 16-19
Schedule 511-B Instructions.................................................. 20-21
Schedule 511-C Instructions.................................................. 21-24
Schedule 511-D Instructions........................................................24
Schedule 511-E Instructions........................................................24
Schedule 511-F Instructions........................................................25
Schedule 511-G Instructions.......................................................25
Schedule 511-H Instructions.................................................. 25-26
Schedule 511-I Instructions.........................................................26
When You Are Finished...............................................................26
Tax Table............................................................................... 27-38
Debit Card and Paper Check Information............................. 39-40
Direct Deposit Information...........................................................41
Contact Information and Assistance............................................41

If your return has a separate page with barcodes,
it was prepared using computer software utilizing
2-D barcoding. This means your tax information
will be processed faster and more accurately and
you will see your refund faster! Provide this page
with your completed return.
The mailing address for 2-D income tax forms is:
	
	
	

Oklahoma Tax Commission
PO Box 26800
Oklahoma City, OK 73126-0800

Note: Any handwritten information will not be
captured when a return is processed using the
2-D barcode.

COMMON ABBREVIATIONS
FOUND IN THIS PACKET
IRC	 -	 Internal Revenue Code
IRS	 -	 Internal Revenue Service
OAC	-	 Oklahoma Administrative Code
OS	 -	 Oklahoma Statutes
OTC	-	 Oklahoma Tax Commission
Sec.	-	 Section(s)

HELPFUL HINTS
• File your return by the same due date as your federal income tax return. See page 4 for information regarding extended
due date for electronically filed returns.
•  If you need to file for an extension, use Form 504-I and then later file a Form 511.
• Be sure to provide copies of your Form(s) W-2, 1099 or other withholding statement with your return. Provide all federal
schedules as required.
•	 Important:  If you fill out any portion of the Schedules 511-A through 511-I or Form 538-S, you are required to provide
those pages with your return. Failure to include the pages will result in a delay of your refund.
•  Be sure to sign and date the return. If you are filing a joint return, both you and your spouse need to sign.
• Do not provide any correspondence other than those documents and schedules required for your return.
•	 If you purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax, you owe use tax on
those items. For more information on use tax, see pages 13-14.
• 	Would you like your refund faster? Choose to have your refund direct deposited into your checking or savings account.
• When you complete the direct deposit section on the Form 511, verify the routing and account numbers are correct. If
the direct deposit fails to process, your refund will be mailed to you on a debit card.
•  After filing, if you have questions regarding the status of your refund, use OkTAP at tax.ok.gov to check your refund or
call 405.521.3160.
	

Fast, free, 24/7 online filing services on OkTAP at tax.ok.gov	

2

WHAT’S NEW IN THE 2023 OKLAHOMA TAX PACKET?
• 	The Credit for Adoption Expenses, which replaced the Deduction for Adoption Expenses, was added to the Form 511CR. To obtain Form 511-CR, visit tax.ok.gov.
• 	The Credit for Qualified Clean-Burning Motor Vehicle Fuel Property was expanded to include equipment installed to
modify a motor vehicle that is propelled by a hydrogen fuel cell, effective for property placed in service on or after July 1,
2023. The credit may be claimed on Form 511-CR. To obtain Form 511-CR, visit tax.ok.gov.
• 	The option to receive a refund as a paper check was added to Form 511. A minimum refund of $10.00 is required to
receive a paper check. If you request a paper check for an amount less than $10.00, a debit card will be issued.
• 	A section for Dependents was added to the Form 511, page 1.
•	 A deduction for bonus depreciation on qualified property or qualified improvement property covered under Section 168
of the Internal Revenue Code was added. The qualified property is eligible for 100% Oklahoma bonus depreciation and
may be deducted as an expense incurred by the taxpayer during the taxable year during which the property is placed in
service. See Form 511, Schedule 511-A, line 15; enter the number “99” in the box for the type of deduction.
•	 The Veterans Auto and Education Improvement Act of 2022 changed existing provisions on election of state residency
for tax purposes for military servicemembers and their spouses. See Resident Defined section.

BEFORE YOU BEGIN
You must complete your federal income tax return before beginning your Oklahoma income tax return. You will use the
information entered on your federal return to complete 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

RESIDENT DEFINED

Resident...

An Oklahoma resident is a person domiciled in this state for the entire tax year. “Domicile” is the place established as a
person’s true, fixed, and permanent home. It is the place you intend to return to whenever you are away (as on vacation
abroad, business assignment, educational leave or military assignment). A domicile, once established, remains until a
new one is adopted.

Part-Year Resident...

A part-year resident is an individual whose domicile was in Oklahoma for a period of less than 12 months during the tax year.

Nonresident...

A nonresident is an individual whose domicile was not in Oklahoma for any portion of the tax year.

Members of the Armed Forces...

Residency is established according to military domicile as established by the Servicemembers’ Civil Relief Act of 2003
(SCRA), formerly known as the Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA). The Veterans Auto and Education
Improvement Act of 2022 (VAEIA) changed existing provisions under the SCRA on election of state residency for tax
purposes for military servicemembers and their spouses
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 residence. You must file your return as a resident of Oklahoma until such time as you
establish a permanent residence in another state and change your military records (as evidenced by the military’s Form
DD2058). See the specific instructions for Schedule 511-C, line C1 - Military Pay Exclusion.
When the spouse of a military member is a civilian and has the same legal residency as the military member, the spouse
may retain such legal residency. They file a joint resident tax return in the military members’ State of Legal Residency (if
required) and are taxed jointly under nonresident rules as they move from state to state. If the non-military spouse does
not have the same legal residency as the military member, the same residency rules apply as would apply to any other
civilian. The spouse would then comply with all residency rules where living.
Under the VAEIA, for any taxable year of marriage, the servicemember and their spouse may elect a state of residence
for income tax purposes based on the servicemember’s residence, the spouse’s residence, or the servicemember’s
permanent duty station.
An Oklahoma resident filing a joint federal return with a nonresident spouse may have options on how to file the Oklahoma
return(s). See “Filing Status” in the “Top of Form Instructions” on page 8 for further information.
	

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WHAT IS “RESIDENT INCOME”?
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 non-business interest and 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 to/in other states claimed on Oklahoma Form 511-TX. (See Form 511, line 16.)

DUE DATE
Generally, your Oklahoma income tax return is due April 15th, the same day as your federal return. However:
	

•	

If you file your return electronically (through a preparer or the internet), your due date is extended to April 20th.
Any payment of taxes due on April 20th must be remitted electronically in order to be considered timely paid. If the
balance due on an electronically filed return is not remitted electronically, penalty and interest will accrue from the
original due date.

	

•	

If the Internal Revenue Code (IRC) of the Internal Revenue Service (IRS) provides for a later due date, your
return may be filed by the later due date and will be considered timely filed. You should write the appropriate
“disaster designation” as determined by the IRS at the top of the return, if applicable. If a bill is received for
delinquent penalty and interest, you should contact the Oklahoma Tax Commission (OTC) at the number on the
bill.

	

•	

If the due date falls on a weekend or legal holiday when OTC offices are closed, your return is due the next
business day. Your return must be postmarked by the due date to be considered timely filed.

WHAT IS AN “EXTENSION”?
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 provided 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-I.
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.

WHO MUST FILE?
Resident...

Every resident individual whose gross income from both within and outside of Oklahoma exceeds the standard deduction
plus personal exemption is required to file an Oklahoma income tax return. If you are uncertain about your filing
requirement, see the charts on page 5.
Resident individuals not required to file a federal income tax return must attach a completed federal income tax return to
the Oklahoma income tax return to show how adjusted gross income (AGI) and deductions were determined, if their gross
income is more than their AGI.
If you do not have a filing requirement, but had Oklahoma tax withheld, made estimated tax payments, qualify for the
Natural Disaster Tax Credit or claim other refundable credits, you should file a return to get your refund.

Part-Year Resident...

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

Nonresident...

Except as otherwise provided for in the Pass-Through Entity Tax Equity Act of 2019, every nonresident with gross income
from Oklahoma sources of $1,000 or more is required to file an Oklahoma income tax return. Use Form 511-NR.

	

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4

DETERMINING YOUR FILING REQUIREMENT
If you do not meet the Oklahoma filing requirement as shown in either Chart A or Chart B, you are not required to file an
Oklahoma tax return. If you have withholding, made estimated tax payments or qualify for a refundable credit, you should
file a return to get your refund.
Chart A: Oklahoma Filing Requirements - You must file a return if your gross income exceeds the amount shown.
Filing Status

Gross Income

Single	$7,350
Married Filing Joint	

$14,700

Married Filing Separate	

$7,350

Head of Household	

$10,350

Qualifying Widow(er) with a Dependent Child	

$13,700

Chart B: Oklahoma Filing Requirements for Children and Other Dependents
If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file an Oklahoma return.
You must file a return if your gross income exceeds the amount shown.
Marital Status

Gross Income

Single Dependents	

$6,350

Married Dependents	

$6,350

ESTIMATED INCOME TAX
You must make equal* quarterly estimated tax payments if you can reasonably expect your tax liability to exceed your
withholding by $500 or more and you expect your withholding to be less than the smaller of:
	
1.	70% of your current year’s tax liability, or
	
2.	The tax liability shown on your return for the preceding taxable year of 12 months.
Taxpayers who fail to make timely estimated tax payments may be subject to interest on underpayment. Form OW-8-ES,
for filing estimated tax payments, will be supplied on request. If at least 66.67% (or two-thirds) of your gross income for
this year or last year is from farming, estimated payments are not required. If claiming this exception, see instructions for
line 22.
Estimated payments can be made online through OkTAP at tax.ok.gov.
* For purposes of determining the amount of tax due on any of the respective dates, taxpayers may compute the tax by
placing taxable income on an annualized basis. See Form OW-8-ES-SUP.

NET OPERATING LOSS
The loss year return must be filed to establish the Oklahoma Net Operating Loss (NOL). Oklahoma NOL shall be
separately determined by reference to IRC Section 172 as modified by the Oklahoma Income Tax Act and shall be allowed
without regard to the existence of a federal NOL. For tax years 2009 and subsequent, the years to which an NOL may be
carried shall be determined solely by reference to IRC Section 172. Provide a detailed schedule showing the origin and
NOL computation. Residents use Oklahoma 511-NOL Schedules. Also provide a copy of the federal NOL computation.
A NOL resulting from a farming loss may be carried back in accordance with and to the extent of IRC Section 172(b)(G).
However, the amount of the NOL carryback shall not exceed the lesser of $60,000, or the loss properly shown on the
Federal Schedule F reduced by half of the income from all other sources other than reflected on Schedule F.
An election may be made to forego the carryback period. A written statement of the election must be part of the original
timely filed Oklahoma loss year return. However, if you filed your return on time without making the election, you may
still make the election on an amended return filed within six months of the due date of the return (excluding extensions).
Attach the election to the amended return. Once made, the election is irrevocable.
The Oklahoma NOL(s) shall be subtracted on Schedule 511-A, line 9. There is also a space provided to enter the loss year(s).
The federal NOL(s) shall be added on Schedule 511-B, line 4.
	

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ALL ABOUT REFUNDS
Taxpayers have two quick, convenient ways to check the status of their refund without speaking to an OTC representative.
	

• 	 Visit OkTAP at tax.ok.gov and click on the “Where’s My Refund?” link under “Individuals”. You will be required
to enter the last seven digits of the primary filer’s social security number, the exact dollar amount of the refund for
which you are searching and the ZIP code on the return.

	

•	

Call 405.521.3160 and enter the same information as prompted by our interactive automated phone system.

Note: If your return was e-filed, you can generally begin checking on your refund about four days after the return was
accepted by the OTC. If your return was paper filed, you should allow four to six weeks to begin checking on your refund.
Once processed, allow five business days for the deposit to be made to a bank account. For debit card and paper check
refunds, allow five to seven business days for delivery.
Important: If you do not choose to have your refund deposited directly into your bank account, you may choose to receive
a debit card or a paper check. See pages 39 and 40 for information on debit cards and page 41 for more information on
direct deposit.
A direct deposit, debit card or paper check are not your only options to receive your refund. If timely filing, you may have
any amount of overpayment applied to your next year’s estimated tax. Overpayments applied to the following year’s Oklahoma estimated income tax in error may be refunded to the taxpayer upon request; however, the taxpayer must file the
refund request no later than October 15 of the year in which the refund was to be applied. OAC 710:50-13-6(d).

AMENDED RETURNS
WHEN TO FILE AN AMENDED RETURN

An amended return can be filed at any time. Generally, any claim for refund of an overpayment of tax must be made within
three years from the due date of the return, including the period of any extension of time for filing a return, or two years
from the payment of the tax liability, whichever period is later, or, if no return was filed, within two years of the time the tax
was paid.
If your federal return for any year is changed, an amended Oklahoma return shall be filed within one year. If you amend
your federal return, it is recommended you obtain confirmation the IRS approved your federal amendment before filing
your amended Oklahoma return. Filing an amended Oklahoma return without such IRS confirmation may delay the
processing of your return; however, this may be necessary to avoid the expiration of the statute of limitations.
File a separate amended return for each year you are amending. No amended return may encompass more than one
single year. Mail each year’s amended return in a separate envelope. Do not provide amendments from different years in
the same envelope.
If you discover you have made an error only on your Oklahoma return, we may be able to help you correct the form
instead of filing an amended return. For additional information, contact our Taxpayer Resource Center at 405.521.3160.

HOW TO COMPLETE AN AMENDED RETURN

Place an “X” in the Amended Return checkbox at the top of Form 511, page 1. Complete the amended return. Enter any
amount(s) paid with the original return plus any amount(s) paid after it was filed on line 29. Enter any refund previously
received or overpayment applied on line 31. Complete Schedule 511-I “Amended Return Information” on Form 511.

WHEN YOU ARE FINISHED

Provide a copy of the following supporting documents, if applicable. Failure to provide the supporting documents may
delay the processing of the return.
	

•	

Form 1040X (Amended Federal Income Tax Return) or Form 1045 (Application for Federal Tentative Return),

	

•	

Proof that IRS has approved the claim, such as the statement of adjustment, IRS tax account transcript, any correspondence from IRS, or the deposit slip of your federal refund,

	

•	

Revenue Agent Report (RAR), CP2000 or other notification of an assessment or a change made by the IRS,

	

•	

Additional Forms W-2 or 1099 not furnished with original return, and

	

•	

Forms, schedules or other documentation to substantiate any change made on the amended return.

	

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TOP OF FORM INSTRUCTIONS

A

Oklahoma Resident Income Tax Return

B

Place an ‘X’ in this
box if this taxpayer
is deceased

B

Spouse’s Social Security Number
(joint return only)

Name and Address - Please Print or Type
Your First Name

D

Middle Initial Last Name

Filing Status

Mailing Address (Number and street, including apartment number, rural route or PO Box)

If a Joint Return, Spouse’s First Name

City

State

Single

2  	

Married filing joint return (even if only one had income)

3  	

Married filing separate

E

F

	(If spouse is also filing, list name and SSN in the boxes
Name

5 	
	

C

Place an ‘X’ in this box if
this is an amended 511. See
Schedule 511-I.

Middle Initial Last Name

ZIP or Postal Code

Country

* Note: If claiming Special Exemption, see instructions on page 9 of 511 Packet.

1 	

4 	

AMENDED RETURN!
Place an ‘X’ in this
box if this taxpayer
is deceased

Exemptions

Your Social Security Number

Form 511
2023

SSN

Head of household with qualifying person

Regular

* Special

Blind

Yourself

(a)

Spouse

(b)
(c)

Number of dependents
Add the Totals from boxes (a), (b) and (c).
Enter the TOTAL here:

Note: If you may be claimed as a dependent on another return, enter “0” in the
Total box for your regular exemption.

G

Qualifying widow(er) with dependent child
• Please list the year spouse died in box at right:

Age 65 or Older?

(Please see instructions)

Yourself

Spouse

Dependents - If more than four dependents, see instructions and place an ‘X’ here:
1. First Name

2. Last Name

3. Social Security Number

4. Date of Birth

5. Relationship to You

H
	

A

DO NOT WRITE OUTSIDE DESIGNATED AREAS

The barcode near the form number contains a page notation signifying the first page of a new return for processing
equipment use. The blank areas are used for processing notations. Do not write in these areas.

	

B

SOCIAL SECURITY NUMBER (SSN)

Enter your social security number. If you are married filing joint, enter your spouse’s social security number in the space
provided. Note: If you are married filing separate, do not enter your spouse’s social security number here. Enter in Item E.
Note: The request for your SSN is authorized by Section 405, Title 42, of the United States Code. You must provide this
information. It will be used to establish your identity for tax purposes only.

	

WHAT ABOUT DECEASED TAXPAYERS?

If a taxpayer died before filing a return, the executor, administrator or surviving spouse may have to file a return for the
deceased. Place an ‘X’ in the appropriate box in the SSN area.

	C

AMENDED RETURN

Place an ‘X’ in the box if you are filing an amended return. Use lines 29 and 31 to report tax previously paid and/or
previous overpayments. Complete Schedule 511-I.

	D

NAME AND ADDRESS

Print or type the first name, middle initial and last name for both yourself and spouse, if applicable. Complete the address
portion including an apartment number and/or rural route, if applicable.
	

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TOP OF FORM INSTRUCTIONS
	E

FILING STATUS

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

1.	 File as Oklahoma married filing separate. The Oklahoma resident, filing a joint federal return with a nonresident
civilian spouse, may file an Oklahoma return as married filing separate. The resident will file on Form 511 using
the married filing separate rates and reporting only his/her income and deductions.  If the nonresident civilian
also has an Oklahoma filing requirement, he/she will file on Form 511-NR, using married filing separate rates and
reporting his/her income and deductions. Form 574 “Allocation of Income and Deductions” must be filed with the
return(s). You can obtain this form from our website at tax.ok.gov.
	

	

-OR-

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

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

	EXEMPTIONS
F
To the right of the word “Yourself” place a number “1” in all the boxes that apply to you. Next, total the boxes. Then do the
same for your spouse, if applicable.
Exemption Terms
Regular:
Yourself - You may claim an exemption for yourself if you can’t be claimed as a dependent on another person’s return.
If you can be claimed as a dependent on another return, enter “0” for your exemption. You still qualify for the Oklahoma
Standard Deduction.
Spouse - You may claim an exemption for your spouse if either of the following applies:
	

1.	 Your filing status is married filing joint return and your spouse can’t be claimed as a dependent on another
person’s return.

		-OR	
	
	

2.	 You were married at the end of the tax year, your filing status is married filing separate or head of household, and
both of the following apply.
a.	 Your spouse had no income and isn’t filing a return.
b.	 Your spouse can’t be claimed as a dependent on another person’s return.

If your filing status is head of household and you claimed an exemption for your spouse, enter your spouse’s name and
social security number in the Filing Status section under ‘3. Married filing separate’.  If you became divorced or legally
separated during the tax year, you can’t take an exemption for your former spouse.
If your spouse died during the tax year and you didn’t remarry by the end of the tax year, you may claim an exemption for
your spouse if you could have taken an exemption for your spouse on the date of death.

	

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TOP OF FORM INSTRUCTIONS
	F

EXEMPTIONS (continued)

Special:  An additional exemption may be claimed for each taxpayer or spouse who meets the qualifications based on filing
status and Federal AGI limits** below and who is 65 years of age or older at the close of the tax year:
	
(1)	 Single return with line 1 equal to $15,000 or less.
	
(2)	 Joint return with line 1 equal to $25,000 or less.
	
(3)  Married filing separate return with line 1 equal to $12,500 or less.
	
(4) Head of household return with line 1 equal to $19,000 or less.

**Note: If your Federal AGI includes income from the conversion of a traditional individual retirement account to a Roth
individual retirement account, this income shall be excluded in determining the Federal AGI limits. Provide a copy of your
federal return and Form 8606.
Legally Blind: An additional exemption may be claimed for each taxpayer or spouse who is legally blind.
Dependents: You may claim an exemption for each individual who is your dependent, as defined in IRC Sec. 152. Enter the
number of dependents claimed; this usually equals the number of dependents listed on your federal return. If claiming an
individual who qualifies as your dependent under IRC Sec. 152 but who is not listed as a dependent on your federal return,
include a statement showing the dependent’s name, SSN/ITIN and the reason the individual is not on your federal return.
Note for those filing Form 574 “Resident/Nonresident Allocation”: If the nonresident spouse also has an Oklahoma
filing requirement and is filing separately on Form 511-NR, the dependency exemptions will be allocated between the
resident’s and nonresident’s returns.

	G

SIXTY-FIVE OR OLDER

Place an ‘X’ in the box(es) if your age, or your spouse’s age is 65 or older on or before December 31, 2023. If you turned
age 65 on January 1, 2024, you are considered to be age 65 at the end of 2023.

	H

DEPENDENTS

If you have more than four dependents, check the box next to Dependents on page 1 of Form 511 or 511-NR and include
a statement showing the information required in columns (1) through (5) .

SELECT LINE INSTRUCTIONS
1
       Federal Adjusted Gross Income (AGI)
Enter your Federal AGI from your federal return Form 1040 or 1040-SR.
2

Subtractions
Enter the total from Schedule 511-A, line 16. See Schedule 511-A instructions on pages 16-19.
4

Out-of-State Income
This is income from real or tangible personal property or business income in another state. This includes partnership gains
and gains sustained by S corporations attributable to other states. It is not non-business interest or dividends, installment
sale interest, salary/wages, pensions, unemployment compensation, gambling or income from personal services.
(See instructions for line 16.) Provide a brief description of the type of out-of-state income deducted. Provide detailed
schedule showing the type, nature and source of the income and copy of federal return. Documents submitted should
reflect to which state(s) the income is attributable. Provide the other state’s return and/or Schedule K-1, if applicable.
6
        Additions
Enter the total from Schedule 511-B, line 9. See Schedule 511-B instructions on pages 20 and 21.
8
        Adjustments
Enter the total from Schedule 511-C, line 6. See Schedule 511-C instructions on pages 21-24.

	

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SELECT LINE INSTRUCTIONS
10
        Deductions
Complete line 10 unless you have out-of-state income (Form 511, line 4). If you have out-of-state income, complete
Schedule 511-E instead of line 10.
If you claimed the standard deduction on your federal return, you must claim the Oklahoma standard deduction. If you
claimed itemized deductions on your federal return, you must claim Oklahoma itemized deductions.
• Standard Deduction:
If you did not claim itemized deductions on your federal return, enter the Oklahoma standard deduction on line 10.
If your filing status is “single” or “married filing separate”, your Oklahoma standard deduction is $6,350.
If your filing status is “head of household”, your Oklahoma standard deduction is $9,350.
If your filing status is “married filing joint” or “qualifying widow(er)”, your Oklahoma standard deduction is $12,700.
Note: You qualify for the Oklahoma standard deduction even when claimed as a dependent on another return.
		-OR• Itemized Deductions:
If you claimed itemized deductions on your federal return (Form 1040 or 1040-SR, Schedule A), complete Schedule
511-D to determine your Oklahoma itemized deductions. Schedule 511-D begins with federal itemized deductions from
your Federal Schedule A. State and local sales or income tax included on your Federal Schedule A may not be used to
calculate Oklahoma itemized deductions and must be added back. Oklahoma itemized deductions are limited to, and may
not exceed, $17,000. Charitable contributions and medical expenses are not subject to the $17,000 limit. (Provide a copy
of your Federal Schedule A.)
11

Exemptions
Complete line 11 unless you have out-of-state income (Form 511, line 4). If you have out-of-state income, complete
Schedule 511-E instead of line 11.
Oklahoma allows $1,000 for each exemption claimed on the top of the return.
12
        Total Deductions and Exemptions
If you completed lines 10 and 11, enter the total on line 12. If you instead completed Schedule 511-E, enter the total from
line 5 of Schedule 511-E.
14

Oklahoma Income Tax
(14a)
Using Form 511, line 13, find your tax in the Tax Table (pages 27-38). Enter the result here unless you used Form 573
“Farm Income Averaging”. If you used Form 573, enter the amount from Form 573, line 22, and enter a “1” in the box.
(14b)
Amounts withdrawn from a Health Savings Account for any purpose other than those described in 36 OS Sec. 6060.17
and which are included in your Federal AGI are subject to an additional 10% tax. Enter the additional 10% tax and enter a
“2” in the box.
Recapture of the Oklahoma Affordable Housing Tax Credit - If under IRC Section 42, a portion of any federal low-income
housing credits taken on a qualified project is required to be recaptured during the first 10 years after a project is placed
in service, the taxpayer claiming Oklahoma Affordable Housing Tax Credits with respect to such project shall also be
required to recapture a portion of such credits. The amount of Oklahoma Affordable Housing Tax Credits subject to
recapture is proportionally equal to the amount of federal low-income housing credits subject to recapture. Enter the
recaptured credit and enter a “3” in the box.
Making an Oklahoma installment payment pursuant to IRC Section 965(h) - If a taxpayer elected to make installment
payments of tax due pursuant to the provisions of subsection (h) of Section 965 of the IRC, such election may also apply
to the payment of Oklahoma income tax, attributable to the income upon which such installment payments are based.
Enter the installment payment and enter a “4” in the box. Provide a schedule of the tax computation. 68 OS Sec. 2368(K)

	

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SELECT LINE INSTRUCTIONS
15 Child Care/Child Tax Credit
Complete line 15 unless your Oklahoma AGI (Form 511, line 7) is less than your Federal AGI (Form 511, line 1). If your
Oklahoma AGI is less than your Federal AGI, complete Schedule 511-F to determine the amount to enter on line 15.
If your Federal AGI is $100,000 or less and you are allowed either a credit for child care expenses or the child tax credit
on your federal return, you are allowed a credit against your Oklahoma tax. Your Oklahoma credit is the greater of:
	

•	

20% of the credit for child care expenses allowed by the IRC.

		-OR	

•	

5% of the child tax credit allowed by the IRC. This includes both the nonrefundable child tax credit and the
refundable additional child tax credit.

If your Federal AGI is greater than $100,000, no credit is allowed.
16 Credit 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 Form
511-TX and furnish a copy of the other state(s) return, or Form W-2G if the taxing state does not allow a return to be filed
for gambling winnings (example: Mississippi).
Note: Taxpayers who have claimed credit for taxes paid to another state on the other state’s income tax return do not
qualify to claim this credit based on the same income.
17 Other Credits
The amount of other credits as claimed on Form 511-CR should be entered on this line. Enter in the box the number that
corresponds with the credit to which you are entitled. If you qualify for more than one type of credit, enter “99” in the box.
See below for a list of the credits available on Form 511-CR. You can obtain this form from our website at tax.ok.gov.
Tax credits transferred or allocated must be reported on Form 569. Failure to file Form 569 will result in the affected
credits being denied by the OTC pursuant to 68 OS Sec. 2357.1A-2.
• 	 Oklahoma Investment/New Jobs Credit
	 Provide Form 506.
	 68 OS Sec. 2357.4 and Rule 710:50-15-74.
• 	 Credit for Verified Blood Donation
	 68 OS Sec. 2357.406.
• 	 Credit for Investment in a Clean-Burning Motor Vehicle Fuel Property
	 Provide Form 567-A.	
	 68 OS Sec. 2357.22 and Rule 710:50-15-81.  
• 	 Credit for Qualified Software or Cybersecurity Employees
	 Provide Form 566.
	 68 OS Sec. 2357.405 and Rule 710:50-15-117.
• 	 Credit for Tourism Development or Qualified Media Production Facility
	 68 OS Sec. 2357.34 - 2357.40.
• 	 Oklahoma Local Development and Enterprise Zone Incentive Leverage Act Credit
	 68 OS Sec. 2357.81.
• 	 Credit for Qualified Rehabilitation Expenditures
	 68 OS Sec. 2357.41 and Rule 710:50-15-108.
• 	 Credit for Electricity Generated by Zero-Emission Facilities
	 68 OS Sec. 2357.32A.
• 	 Credit for Financial Institutions Making Loans under the Rural Economic Development Loan Act
	 68 OS Sec. 2370.1.
• 	 Credit for Adoption Expenses
	 68 OS Sec. 2357.601.
	

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SELECT LINE INSTRUCTIONS
Other Credits (continued)
• 	 Volunteer Firefighter Credit
	 Provide the Firefighter Training Advisory Committee’s Form.
	 68 OS Sec. 2358.7 and Rule 710:50-15-94.
• 	 Credit for Railroad Modernization
	 68 OS Sec. 2357.104 and Rule 710:50-15-103.
• 	 Credit for Strategic Industrial Development Enhancement (SIDE) Projects
	 68 OS Sec. 2357.105.
• 	 Credit for Biomedical Research Contribution
	 68 OS Sec. 2357.45 and Rule 710:50-15-113.
• 	 Credit for Employees in the Aerospace Sector
	 Provide Form 564.
	 68 OS Sec. 2357.301 & 2357.304 and Rule 710:50-15-109.
•	 Credits for Employers in the Aerospace Sector
	 Provide Form 565.
	 68 OS Sec. 2357.301, 2357.302 and 2357.303 and Rule 710:50-15-109.
•	 Credit for Cancer Research Contribution
	 68 OS Sec. 2357.45 and Rule 710:50-15-113.
•	 Oklahoma Capital Investment Board Tax Credit
	 74 OS Sec. 5085.7.
•	 Credit for Contributions to a Scholarship-Granting Organization
	 68 OS Sec. 2357.206 and Rule 710:50-15-114.
•	 Credit for Contributions to an Educational Improvement Grant Organization
	 68 OS Sec. 2357.206 and Rule 710:50-15-115.
•	 Credit for Venture Capital Investment
	 Provide Form 518-A or 518-B.
	 68 OS Sec. 2357.7 & 8 and Rule 710:50-15-77 & 78.
•	 Oklahoma Affordable Housing Tax Credit
	 68 OS Sec. 2357.403.
•	 Credit for Employees in the Vehicle Manufacturing Industry
	 Provide Form 584.
	 68 OS Sec. 2357.404 and Rule 710:50-15-116.
•	 Credits for Employers in the Vehicle Manufacturing Industry
	 Provide Form 585.
	 68 OS Sec. 2357.404 and Rule 710:50-15-116.
•	 Credit for Contributions to an Eligible Public School Foundation or Public School District
	 68 OS Sec. 2357.206.
•	 Credit for Oklahoma Rural Jobs
	 68 OS Sec. 3930 - 3937

	

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19
       Oklahoma
Use Tax
Every state with a sales tax has a companion tax for purchases made outside the state. In Oklahoma, that tax is called
“use tax”. If you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax whether
by mail order, catalog, television shopping networks, radio, internet, phone or in person, you owe Oklahoma use tax on
those items. Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. Individuals in
Oklahoma are responsible for paying use tax on their out-of-state purchases.
Examples of items that are subject to sales tax include books, compact discs, computer equipment, computer software,
electronics, clothing, appliances, furniture, sporting goods and jewelry. When an out-of-state retailer does not collect
Oklahoma sales tax, the responsibility of paying the tax falls on the purchaser.
Use tax is calculated at the same rate as sales tax, which varies by city and county. The state sales tax rate is 4.5% (.045)
plus the applicable city and/or county rates. If you do not know the exact amount of Oklahoma use tax you owe based on
your city and county sales tax rate, you can either:
	 1. 	 Use the tax table on page 14 or multiply your AGI from line 1 by 0.056% (.00056), 	
		 -OR	 2. 	 Use one of the worksheets below to calculate your Oklahoma use tax. Complete Worksheet One if you kept
records of all of your out-of-state purchases. Complete Worksheet Two if you did not keep records of all of your
out-of-state purchases.
Worksheet Two has two parts. The first part is a calculation of the amount due on items that cost less than $1,000 each,
and the second part is a calculation of the amount due on items that cost $1,000 or more each. The first calculation is
based on a Use Tax Table that reflects the estimated amount of use tax due by taxpayers with varying amounts of Federal
AGI. The estimated amount is 0.056% (.00056) of Federal AGI. If you believe that estimate from the table is too high for
your out-of-state purchases, you may estimate what you think you owe.
If you paid another state’s sales or use tax on any purchase, that amount may be credited against the Oklahoma use tax
due on that purchase.
Note: Your use tax worksheets may be reviewed. If it is determined that you owe more use tax than what is shown on
your return, you may be subject to an assessment for the additional use tax.

See Page 14 for the Oklahoma Use Tax Table

Use Tax Worksheet One For Taxpayers Who Have Records of All Out-of-State Purchases
1	

Enter the total amount of out-of-state purchases for 1/1/2023 through 12/31/2023.......................

1

2	

Multiply line 1 by 7% (.07) or your local rate* and enter the amount..............................................

2

3	
	

Enter the tax paid to another state on the purchases. This amount may not exceed the
amount on line 2.............................................................................................................................

3

4	
	

Subtract line 3 from line 2 and enter the results, rounded to the nearest whole dollar,
here and on Form 511, line 19.......................................................................................................

4

Use Tax Worksheet Two For Taxpayers Who Do Not Have Records of All Out-of-State Purchases
1	
	

Purchases of items costing less than $1,000: See the Use Tax Table on page 14
to establish the use tax due based on your Federal AGI from Form 511, line 1 ............................

1

2	 Purchases of items costing $1,000 or more: Complete lines 2a and 2b below to
	
calculate the amount of use tax owed.
	
2a	 Enter the total amount of out-of-state purchases
2a
		
of $1,000 or more for 1/1/2023 through 12/31/2023 .......
	
2b	 Multiply line 2a by 7% (.07) or your local rate*
2b
		
and enter the amount .....................................................
3	

Add lines 1 and 2b and enter the total amount of use tax..............................................................

3

4	
	

Enter the tax paid to another state on the purchases. This amount may not exceed the
amount on line 3 ............................................................................................................................

4

5	
	

Subtract line 4 from line 3 and enter the results, rounded to the nearest whole dollar,
here and on Form 511, line 19 ......................................................................................................

5

* Use tax is calculated the same as sales tax. Your local rate would be the state sales tax rate of 4.5% (.045) plus the applicable city and/
or county rate based on where you lived when the purchase was made. The rate charts can be found on our website at tax.ok.gov.

	

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SELECT LINE INSTRUCTIONS
OKLAHOMA USE TAX TABLE
If Federal AGI
(Form 511, line 1) is:
At least
	0	
	 2,090	
	 4,670	
	 6,420	
	8,170	
	 9,920	
	11,795	
	13,545	
	15,295	
	17,170	
	 18,920	
	 20,670	
	22,420	
	 24,295	
	 26,045	
	 27,795	
	 29,670	
	31,420	
	33,170	
	 34,920	
	 36,795	
	38,545	
	40,295	
	42,170	
	 43,920	
	 45,670	
	47,420	
	49,295	
	51,045	
	 52,795	
	 54,670 	
	
	

But less than
2,090	
4,670	
6,420	
8,170	
9,920	
11,795	
13,545	
15,295	
17,170	
18,920	
20,670	
22,420	
24,295	
26,045	
27,795	
29,670	
31,420	
33,170	
34,920	
36,795	
38,545	
40,295	
42,170	
43,920	
45,670	
47,420	
49,295	
51,045	
52,795	
54,670	
and over	
	

Your Use Tax Amount is:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
multiply Federal AGI
times 0.00056

	22 Oklahoma Estimated Tax Payments
Enter any payments you made on your estimated Oklahoma income tax for 2023. Include any overpayment from your
2022 return you applied to your 2023 estimated tax.
If at least 66.67% (or two-thirds) of your gross income this year or last year is from farming, estimated payments are not
required. If claiming this exception, you must mark the box on this line and provide a complete copy of your federal return.
For information regarding who is required to make estimated tax payments, refer to page 5, “Estimated Income Tax”.
	23 Payment with Extension
If you filed Oklahoma extension Form 504-I for 2023, enter any amount you paid with that form.
24 Credit for Property Tax Relief
Any person 65 years of age or older or any totally disabled person who is head of a household, a resident of and domiciled in this state during the entire preceding calendar year, and whose gross household income for such year does not
exceed $12,000, may file a claim for property tax relief on the amount of property taxes paid on the household they occupied during the preceding calendar year. The credit may not exceed $200. Claim must be made on Form 538-H.
	

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SELECT LINE INSTRUCTIONS
25 Sales Tax Relief/Credit
If you are required to file an Oklahoma income tax return, your return must be filed by April 15th. An extension of time to
file your return, including the April 20th due date for electronically filed returns, does apply to this credit.
To file for sales tax relief, you must be an Oklahoma resident for the entire year. Your total gross household income cannot
exceed $20,000 unless one of the following applies:
	
•	 You can claim an exemption for your dependent, or
	
•	 You are 65 years of age or older by 12/31/2023, or
	
•	 You have a physical disability constituting a substantial handicap to employment (provide proof, see Form 538-S).
If any one of the above three items pertains to you, your total gross household income limit is increased to $50,000. Fill
out and provide Form 538-S if you qualify for this credit. The Form 538-S is included in this packet.
The Oklahoma Department of Human Services will make the sales tax refund to persons who have continuously received
aid to the aged, legally blind, disabled or Medicaid payments for nursing home care from January 1, 2023, to December 31, 2023. Persons who have received temporary assistance for needy families (TANF) for any month in the year of
2023  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.
	26 Natural Disaster Tax Credit
This credit is for owners of residential real property whose primary residence was damaged or destroyed in a natural
disaster for which a Presidential Major Disaster Declaration was issued. The amount of the credit is the difference between
the ad valorem property tax paid on such property in the tax year prior to the damage or destruction and the tax paid the
first year after the property is rebuilt or repaired. The primary residence must be repaired or rebuilt and used as the primary
residence no later than 36 months after any natural disaster. To claim this credit, provide Form 576 with your return.
	27 Credit from Form 578
If claiming the Refundable Credit for Electricity Generated by Zero-Emission Facilities, provide Form 578. Any credits earned, but not used, based on electricity generated during the tax year may be refunded to the taxpayer at 85% of the
face amount of the credits. A PTE that does not file a claim for a direct refund may allocate the credit to one or more of its
shareholders, partners or members.
28 Earned Income Credit
Complete Schedule 511-G to determine the amount to enter on line 28.
You are allowed a credit equal to 5% of the federal earned income credit calculated using the same requirements for
calculating the earned income tax credit for federal income tax purposes in effect for the 2020 income tax year. Provide a
copy of your federal return and Oklahoma Form 511-EIC (available at tax.ok.gov).
35 Donations (Original return only)
Schedule 511-H provides you with the opportunity to make a financial gift from your refund to a variety of Oklahoma
organizations. Note that this reduces your refund if you choose to donate. The donation will be forwarded to the appropriate agency. Information regarding each organization, including the address to mail a donation if you are not receiving a
refund, is found under ‘Schedule 511-H’ on pages 25 and 26.
Place the line number of the organization from Schedule 511-H in the box. If giving to more than one organization, put a
“99” in the box and attach the Schedule 511-H showing how you wish the donation to be divided.
37
        Amount
to be Refunded
If you do not choose direct deposit, you may choose to receive your refund on a debit card or a paper check. If your direct
deposit fails to process, you will be issued a debit card. See “All About Refunds” on page 6 for more information.

	

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SELECT LINE INSTRUCTIONS
39 Underpayment of Estimated Tax Interest
Estimated tax payments were required during the year if your income tax liability exceeded your withholding by $500 or
more. To avoid the 20% Underpayment of Estimated Tax Interest, timely filed quarterly estimated tax payments and withholding are required to be the smaller of:
	

•	

70% of the current year tax liability, or

	

•	

100% of your prior year tax liability.

The income tax liability is the Oklahoma income tax due less all credits except amounts paid on withholding, estimated tax
and extension payments.
Note: No Underpayment of Estimated Tax Interest shall be imposed if the income tax liability shown on the return is less
than $1,000.
If you do not meet one of the above exceptions, you may complete Form OW-8-P or the OTC will figure the interest for
you and send you a bill.
If you owe underpayment of estimated tax interest and you have an overpayment (line 33), enter the amount of underpayment of estimated tax interest on this line (line 39) and reduce the amount you are applying to estimated tax (line 34) or
your refund (line 37) by that same amount (but not less than zero). You will be using your overpayment to pay your underpayment of estimated tax interest. Check the box if using the annualized installment method. Do not provide a payment
unless you still have a balance due after applying all of your overpayment.
If an amended return is filed before the due date for filing the original return, including any extensions, the tax shown on
the amended return is used to determine the amount of underpayment. If the amended return is filed after the due date,
including extension, the tax shown on the amended return will not be used to compute the amount of underpayment.
40
        Delinquent Penalty and Interest
After the original due date of the return, compute 5% penalty on the income tax due (line 38 minus line 20). Compute
interest on the income tax due at 1.25% per month from the original due date of the return. An extension does not extend
the date for payment of tax.
Note:  If you have a valid extension of time to file your return, delinquent penalty is not due if 90% of your income tax was
paid by the original due date of the return. Delinquent interest is due on any income tax not paid by the original due date
of the return.
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 IRC, except when specifically provided for in the Oklahoma Statutes or rules.

SCHEDULE 511-A

A1
   	 Interest on U.S. Government Obligations
If you report interest on bonds, notes and other obligations of the U.S. Government on your federal return, this income
may be excluded from your Oklahoma AGI 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 income is from a
mutual fund that invests in U.S. Government obligations, provide documentation from the mutual fund to substantiate
the percentage of income derived from obligations exempt from Oklahoma tax. Interest from entities such as FNMA and
GNMA does not qualify.
Note: The capital gain/loss from the sale of an U.S. Government obligation is exempt. Enter exempt gains on Schedule
511-A, line 11 and exempt losses on Schedule 511-B, line 8.
A2
	 Social Security
Social Security benefits that are included in the Federal AGI shall be subtracted. Provide a copy of your federal return.

	

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SCHEDULE 511-A
	A3 Federal Civil Service Retirement in Lieu of Social Security
Each individual may exclude 100% of their retirement benefits received from the Federal Civil Service Retirement System
(CSRS), including survivor benefits, paid in lieu of Social Security to the extent such benefits are included in the Federal
AGI. Enter your Retirement Claim Number from your Form CSA 1099-R or CSF 1099-R in the box on Schedule 511-A,
line 3. Provide a copy of Form CSA 1099-R or CSF 1099-R with your return. To be eligible, such 1099-R must be in your
name.
Note: Retirement benefits paid under the Federal Employees Retirement System (FERS) do not qualify for this exclusion,
except:
	

•	

Retirement benefits containing both a FERS and a CSRS component, the CSRS component will qualify for the
exclusion.

	

•	

The FERS Annuity Supplement (as authorized by Chapter 84 of Title 5 of the United States Code) paid to certain
FERS retirees until eligible for social security at age 62, will qualify for the exclusion.

Provide substantiation for the CSRS component or FERS Annuity Supplement, such as a copy of your Notice of Annuity
Adjustment.
A4 	Military Retirement

Each individual may exclude 100% of retirement benefits from any component of the Armed Forces of the United States.
A5

Oklahoma Government or Federal Civil Service Retirement
Each individual may exclude their retirement benefits up to $10,000, but not to exceed the amount included in the Federal
AGI. (To be eligible, you must have retirement income in your name.) The retirement benefits must be received from the
following:
	
	
	
	
	
	
	
	
	
	
	

•	
•	
•	
•	
•	
•	
•	
•	
•	
•	
•	

The Civil Service of the United States*,
The Oklahoma Public Employees Retirement System of Oklahoma,
The Oklahoma Teacher’s 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 19 OS Sec. 951,
The Uniform Retirement System for Justices and Judges,
The Oklahoma Wildlife Conservation Department Retirement Fund,
The Oklahoma Employment Security Commission Retirement Plan, or
The employee retirement systems created by municipalities pursuant to 11 OS Sec. 48-101.

Provide a copy of Form 1099-R.
*Do not include on this line the CSRS retirement benefits already excluded on Schedule 511-A, line 3.
Note: An early distribution from a retirement fund due to termination of employment prior to your retirement or disability
does not qualify for the $10,000 retirement income exclusion. Generally, there is a “1” in box 7 of your Form 1099-R for this
type of distribution. This distribution may qualify for the “Other Retirement Income” exclusion on Schedule 511-A, line 6.
A6 Other Retirement Income
Each individual may exclude their retirement benefits up to $10,000, but not to exceed the amount included in the Federal
AGI. For any individual who claims the exclusions for government retirees on Schedule 511-A, line 5, the amount of the
exclusion on this line cannot exceed $10,000 minus the amounts already claimed on Schedule 511-A, line 5 (if less than
zero, enter “0”).
The retirement benefits must be received from the following and satisfy the requirements of the 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).
Provide a copy of Form 1099-R or other documentation.

	

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SCHEDULE 511-A
A7	 U.S. Railroad Retirement Board Benefits
All qualified U.S. Railroad Retirement Board benefits that are included in the Federal AGI may be excluded.
A8 Oklahoma Depletion
       	
Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross
income derived from each Oklahoma property during the taxable year. Any depletion deduction allowable is the amount
so computed minus the federal depletion claimed. If Oklahoma options are exercised, the federal depletion not used due
to the 65% limitation may not be carried over for Oklahoma purposes. A complete detailed schedule by property must be
furnished.
Note: Major oil companies, as defined in 52 OS Sec. 288.2, when computing Oklahoma depletion shall be limited to 50%
of the net income (computed without the allowance for depletion) from each property.
Lease bonus received is considered income subject to depletion. If depletion is claimed on a lease bonus and no income
is received as a result of non-producing properties, see Schedule 511-B, line 5.
If you have federal depletion being carried over into this year, see Schedule 511-B, line 5.
A9 Oklahoma Net Operating Loss (NOL)
       	
Enter carryover(s) from previous years. Also enter the loss year(s). The loss year return must be filed to establish the
Oklahoma NOL. See the “Net Operating Loss” section on page 5. Also see Schedule 511-B, line 4.
A10 	Exempt Tribal Income
If the tribal member’s principal residence is on “Indian country” as defined in 18 U.S.C. Section 1151, the income earned
on Indian country may be deducted. Legally acknowledged Indian country must be within the jurisdiction of the tribe of
which he or she is a member. All claimants must provide sufficient information to support that these requirements have
been satisfied.
To deduct income earned on Indian country, provide the following information for tax year 2023:
	

a.	 A copy of your tribal membership card or certification by your tribe as to your tribal membership during the tax
year; and

	

b.	 A copy of the trust deed, or other legal document, that describes the real estate upon which you maintained your
principal place of residence and that was an Indian allotment, restricted, or held in trust by the United States
during the tax year. If your name does not appear on the deed, or other document, provide proof of residence on
such property; and

	

c.	 A copy of the trust deed, or other legal document, that describes the real estate upon which you were employed or
performed work or received income and that was held by the United States of America in trust for a tribal member
or an Indian tribe or that was allotted or restricted Indian land during the tax year. Also a copy of employment
or payroll records that show you are employed on that Indian country or an explanation of your work on Indian
country; and

	

d.	 Any other evidence which you believe supports your claim that you meet all of the criteria for exemption from
income tax.

All information to support your claim for refund must be provided with your return.
A11 	Gains from the Sale of Exempt Government Obligations

See the “note” for Schedule 511-A, line 1 and Schedule 511-B, line 1 instructions. Provide Federal Schedule D and Form
8949.
A12 Oklahoma Capital Gain Deduction
       	
You can deduct qualifying gains receiving capital treatment that are included in Federal AGI. “Qualifying gains receiving
capital treatment” means the amount of net capital gains, as defined under IRC Section 1222(11). The qualifying gain
must:
	

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

	

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SCHEDULE 511-A
Oklahoma Capital Gain Deduction (continued)
	
2)	 Be earned on the sale of stock or ownership interest in an Oklahoma headquartered company, limited liability
company, or partnership where such stock or ownership interest has been owned by you for at least two
uninterrupted years prior to the date of the sale.
	

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

Provide Form 561 and a copy of your Federal Schedule D and Form 8949.
A13 Income Tax Refund
Beginning tax year 2016, if you itemized your deductions on your federal return, you were required to add back state or
local income tax to calculate Oklahoma itemized deductions. The refund of such taxes included on your federal return
(Form 1040 or 1040-SR, Schedule 1, line 1) may be deducted.
A14
        Oklahoma
Income Distributed by an Electing PTE
If you are a member, either directly or indirectly, of an electing PTE, subtract the Oklahoma income covered by the
election pursuant to the provisions of the Pass-Through Entity Act of 2019 (68 OS Sec 2355.1P-1 et seq.). Provide
a schedule listing the electing PTE, federal identification number, federal taxable income (loss) and Oklahoma
taxable income in Form 511, line 1 that is covered by the election pursuant to this Act. Provide a copy of the OTC
acknowledgement letter.
A15 Miscellaneous: Other Subtractions
Enter in the box the appropriate number as listed below that shows the type of deduction. If you are entitled to more than
one deduction type, enter the number “99”.
Enter the number “1” if the following applies:
Royalty income earned by an inventor from a product developed and manufactured in this state shall be exempt from
income tax for a period of seven years from January 1 of the first year in which such royalty is received, as long as the
manufacturer remains in this state. To support your deduction, provide:
	
	
	

1)	 Copy of the patent.
2)	 Copy of the royalty agreement with the manufacturer.
3)	 Copy of registration form from OCAST. (74 OS Sec. 5064.7 (A)(1))

Enter the number “2” if the following applies:
Manufacturer’s exclusion. (74 OS Sec. 5064.7 (A)(2))
Enter the number “3” if the following applies:
Payments received as a result of a military member being killed i