Oklahoma Oklahoma Credit for Tax Paid to Another State

Oklahoma Credit for Tax Paid to Another State
2023 Form 511-TX Credit for Tax Paid to Another State
Credit for Tax Paid to Another State
Name(s) - as shown on Form 511 or Form 511-NR

FORM

State of Oklahoma

2
0
2
3

511-TX

Social Security Number(s)

If taxes were paid to more than one state, a separate 511-TX must be provided for each state
and a complete copy of the other state’s return, including W-2s, must be provided.
Who Qualifies?
A resident taxpayer who receives income for personal services performed in another state must report the full amount
of such income on the Oklahoma return (Form 511). If another state taxes this income, the resident may qualify for
this credit.
A part-year resident who receives income from personal services performed in another state while an Oklahoma resident must report the full amount of such income in the “Oklahoma Amount” column of Form 511-NR. If another state
taxes this income, the part-year resident may qualify for this credit.

Who does not Qualify?
A nonresident taxpayer does not qualify for this credit.
A taxpayer who has claimed credit for taxes paid to another state on the other state’s income tax return does not
qualify to claim this credit based on the same income.

1

Income for personal services taxed by both the other state and also Oklahoma
(See instructions on Page 2)....................................................................................

1

2

Oklahoma Adjusted Gross Income
(Form 511, line 7 or Form 511-NR, line 6) ...............................................................

2

3

Percentage Limitation (divide line 1 by line 2) (cannot exceed 100%).........................................................

3

4

Oklahoma Income Tax (Form 511, line 14 or Form 511-NR, line 19) (not amount withheld)........................

4

5

Limitation Amount (multiply line 4 by line 3).................................................................................................

5

6

Income Tax paid to __________________(Include only the amount of the tax paid to another state
that is attributable to the income from personal services reported on line 1. See example on Page 2.
Do not use the withholding shown on your W-2 forms.)...............................................................................

6

Other state tax credit: enter the lesser of line 5 or line 6 here and on Form 511,
line 16 or Form 511-NR, line 20....................................................................................................................

7

7

Provide a complete copy of:
	

•	 The other state’s return, including W-2s, or

	

•	 Form W-2G if the taxing state (e.g. Mississippi) does not allow a return to be filed for
gambling winnings.

%

2023 Form 511-TX - Page 2

Credit for Tax Paid to Another State
68 OS Sec. 2357(B)(1) and Rule 710:50-15-72
Instructions

This schedule, a complete copy of the other state’s tax return and copies of all W-2 forms must be provided with the Oklahoma return. If the taxing state (e.g. Mississippi) does not allow a return to be filed for gambling winnings, provide a copy
of Form W-2G.
Line 1
Include:
	
•	 Only the amount of wages, salaries, commissions and other pay for personal services that is being taxed by Oklahoma and also the other state. Gambling winnings are considered income from personal services for purposes of
this credit. Part-Year Residents include only the income for personal services that is included in the “Oklahoma
Amount” column of Form 511-NR and that was also taxed by another state.
Do NOT Include:
	
•	 Income that is not compensation for personal services such as interest, dividends, taxable refunds, unemployment compensation, rental income and oil and gas royalty income.
		

- or -

	

Retirement benefits that the nonresident state is prohibited from taxing such as IRA distributions, pensions and
annuities.

•	

Example:
	
Example 1.	John is an Oklahoma resident, filing Form 511. He worked and owned rental property in another
state. The other state’s return shows wages of $20,000 and rental income of $10,000. Line 1 would
be $20,000, the amount of income from personal services included in his Oklahoma adjusted gross
income and taxed by another state.
	

Example 2:	Beth is a part-year resident of Oklahoma, filing Form 511-NR. She lived in Oklahoma until the end of
September, and on October 1, she moved to another state. She worked all year in the other state.
Beth earned a salary of $30,000 for the year, $22,500 while she lived in Oklahoma and $7,500 while
she lived in the other state. She also earned $10,000 rental income from farmland located in Oklahoma. Line 1 would be $22,500, the amount of personal service income included in the “Oklahoma
Amount” column and taxed by another state. The $7,500 she earned while a nonresident of Oklahoma, is not taxed by Oklahoma.

Line 6
Include only the amount of the tax paid to another state that is attributable to the income from personal services
reported on line 1. Do not use the withholding shown on your W-2 forms.
Example:	
		

personal services (from line 1)		 X
total income from another state		

total tax paid to another state = tax paid to another state
(not withholding tax)

Example 1. Bill is an Oklahoma resident filing Form 511. The other state’s return shows $5,000 in wages,
$7,000 in rental income from the other state, and $8,000 from the sale of a house located in
the other state. The other state’s total tax liability is $546. Since only the $5,000 in wages is
income from personal services subject to tax in both states, line 6 would be computed as follows:	
$5,000 X $546 = $137
			
$20,000
Example 2. (continued from Line 1, Example 2 above)
	
The other state taxed all of Beth’s wage income; however, only the portion she earned while
an Oklahoma resident was taxed by both states (see line 1). Her other state’s total tax liability
was $754. Beth determines the portion of the other state’s tax that is attributable to the portion of her wage income that is being taxed in both states as follows:
			
$22,500 X $754 = $566
			
$30,000