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The Oklahoma State Tax form is a crucial document for residents of Oklahoma, encompassing various components to assist taxpayers in filing their state income taxes accurately. This form includes the 511 and 511EZ income tax forms, directions for completing each, a method for Discover Card payments, and guidelines for benefiting from a new direct deposit option for refunds. Notably, the form's elaboration aims to simplify the task for Oklahomans by providing clearer instructions and revamped features tailor-made to enhance user convenience and comprehension.

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The Oklahoma State Tax form encapsulates a critical aspect of fiscal responsibility for the state's residents, providing a detailed structure for individuals to report their annual income tax. With a clear goal towards enhancing user-friendliness, the Oklahoma Tax Commission has introduced various forms, including the 511 and 511EZ, alongside a comprehensive guide on filling them out efficiently. The packet also incorporates a 540 form specifically for Discover Card Payment Authorization and outlines the process for opting into direct deposit for refunds, albeit this feature is exclusively available to 511EZ filers. Importantly, the due date for submitting these forms is firmly established as April 15, 1998, a deadline critical for all filers to avoid penalties. Filing requirements are meticulously detailed for different groups of residents: full-year residents, part-year residents, and non-residents, ensuring clarity on who needs to file and which form suits their circumstances best. Highlighted within the instructions is the necessity to first complete a Federal income tax return, as this serves as the foundation for the Oklahoma return, emphasizing an intertwined relationship between federal and state tax obligations. Furthermore, the package thoughtfully includes instructions regarding estimated income tax payments for those who anticipate owing beyond what is withheld by their employer, showcasing the Oklahoma Tax Commission's dedication to providing all-encompassing tax filing guidance. By offering numerous forms, detailed instructions, and deadlines within this packet, the Oklahoma Tax Commission aims to simplify the annual tax filing process, making it less daunting for Oklahoma residents.

Oklahoma State Tax Example

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	2
Residence Defined	3
What Is Resident Income?	3
Who Must File?	3
Which Form Should I Use?	3
Estimated Income Tax	3
What Is an Extension?	4
All About Refunds	4
Net Operating Loss	4
What If I Need to Amend A Return?	4
Form 511: Top of Form Instructions	4
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	11
Need Assistance? How to Reach Us	12

•2•

H I CH

H OU L D

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.)

E S I D E N T

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

OR M

N S T R U CT I ON S

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:

+++

(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-

An additional exemption may be claimed for each taxpayer

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

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
O	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.
from your Form 511.	=
	=
		T OT AL
		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•

E L E CT I N E N S T R U CT I ON S

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		9	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:
		11	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:
		12
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)
Indian country; and/or	•6•

E L E CT I N E N S T R U CT I ON S

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)

E L E CT I N E N S T R U CT I ON S

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•

OR M	E L E CT I N E N S T R U CT I ON S	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.

✃

OR M

I S COVE R ¨

AR D AY ME N T

U T H OR I Z AT I ON

OR M

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•

OR M

OP OF OR M N S T R U CT I ON S

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 neatly 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:

(1)

Single return with line 1 equal to $15,000 or less.

Mark the box whichindicates 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

(4)

Head of household return with line 1 equal to

instructions.

$19,000 or less.

I X T Y

I V E OR V E R

Blind:

An additional exemption may be claimed for each taxpayer

Check 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 securitynumber. Also, if you are mar-

¥¥ Please note that if you may be claimed as a dependent

ried, whether you are filing jointly or separately, please enter

on another return, enter zero exemptions for yourself.

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

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

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 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•

Download PDF Form

Document Specifics

Fact Name	Description
Form Availability	This packet includes forms 511 and 511EZ, along with a 540 form for Discover Card payments, and instructions for direct deposit refunds (511EZ only).
Filing Deadline	Returns must be postmarked by April 15, 1998.
Residency Definitions	An Oklahoma resident is anyone domiciled in Oklahoma for the entire tax year. Part-year residents were domiciled in Oklahoma for less than 12 months during the tax year. Non-residents were not domiciled in Oklahoma at any time during the tax year.
Usage of Form 511EZ	To use form 511EZ, filers must be full-year residents without adjustments to Federal Adjusted Gross Income and not claiming any credits, among other qualifications.
Estimated Income Tax Requirement	Filers must submit estimated tax payments if they expect their tax liability to exceed withholdings by $100 or more for 1997 or $500 or more for 1998.
Extension Information	An extension of time to file a Federal return automatically extends the Oklahoma return due date if no Oklahoma tax is owed.

Guide to Writing Oklahoma State Tax

Filing your Oklahoma State tax return might seem like navigating through a maze of paperwork, but with a step-by-step guide, you can complete it with ease. Before starting, it's crucial to have completed your federal income tax return as it lays the foundation for your state tax return by providing necessary information. Oftentimes, taxpayers find rounding all figures to the nearest dollar simplifies the process; for instance, $2.01 to $2.49 rounds down to $2.00, whereas $2.50 to $2.99 rounds up to $3.00. With your federal tax return in hand, you’re ready to tackle the Oklahoma State Tax form.

Next, follow these detailed instructions:

First, gather all required documents, including your W-2 or 1099 forms, your Federal income tax return, and any relevant financial statements to report interest, dividends, or other sources of income.
Choose the correct form. If your tax situation is simple, the 511EZ form might be for you. Else, for a more detailed filing, opt for the 511 form.
Round all monetary amounts to the nearest dollar on your Oklahoma return.
Using the label provided in your tax packet speeds up processing. Place it in the designated area on the chosen tax form.
Indicate your filing status, matching it to your federal return, unless a special circumstance applies.
Enter your name, social security number, and address in the designated spaces.
For the exemptions section, enter "1" if applicable to you and total the columns if filing jointly with a spouse.
Report your Federal Adjusted Gross Income from your federal tax return on Line 1 of the Oklahoma form.
Adjust your income on the Oklahoma form by subtracting or adding specific income types such as interest on U.S. Government Obligations, Social Security benefits, and certain retirement incomes as detailed in the instructions provided with your Oklahoma form.
Carefully compute your Oklahoma Adjusted Gross Income and taxable income based on Oklahoma-specific deductions and exclusions.
Calculate the tax owed using the income tax tables provided in the instructions.
Verify if you’re eligible for any credits, such as low-income sales tax relief or child care credit, and apply them accordingly.
Ensure to include your payment information if you owe tax, alternatively, provide your banking details for direct deposit if expecting a refund.
Double-check for any additional forms or schedules required based on your individual tax situation and attach them.
Sign and date your tax return. If filing jointly, both you and your spouse must sign.
Before sealing the envelope, ensure all necessary documents, including copies of your W-2 or 1099 forms, are attached.
Mail your completed Oklahoma tax return to the address provided by the Oklahoma Tax Commission by the due date, typically April 15th.

Completing your Oklahoma State Tax form methodically ensures accuracy and compliance. Take advantage of available resources, such as the Oklahoma Tax Commission's website or taxpayer assistance services if you encounter any questions. Remember, timely filing avoids late fees and penalties, setting you on the right track for the next tax season.

Understanding Oklahoma State Tax

How do I decide which Oklahoma State Tax form to use?

To determine which Oklahoma State Tax form is right for your situation, consider the following guidelines. If you were an Oklahoma resident for the entire year, no adjustments to Federal Adjusted Gross Income are required, and you do not claim any credits (with exceptions for low-income sales tax relief and child care credit), you may use the 511EZ form. However, if your situation involves adjustments, credits beyond the mentioned exceptions, or if you are filing after April 15, 1998, or made estimated tax payments for 1997, you must use the Form 511. For part-year or non-residents with Oklahoma income, use the Form 511NR. Please review the section entitled “Which Form Should I Use?” on page 3 for a comprehensive guide.
What is the deadline to file my Oklahoma State Tax Return?

The deadline for filing your Oklahoma State Tax Return is postmarked by April 15, 1998. Should you find yourself unable to meet this deadline, you may file for an extension using Form 504. However, it's important to remember that filing for an extension delays the filing date, not the due date for any taxes owed. To avoid any late payment penalties, 90% of the tax liability should be paid by the original due date.
Can I file my Oklahoma State Tax Return electronically?

Yes, Oklahoma offers the option to file your state tax return electronically. This process is facilitated through authorized tax preparer locations equipped to submit your tax information securely and promptly. Electronic filing not only expedites the processing of your return but in many cases, can result in quicker refunds.
What should I do if I need to amend my Oklahoma State Tax Return?

If you discover an error in your Oklahoma State Tax Return or if your net income changes due to an IRS adjustment, you are required to file an amended return using Form 511X within 1 year of the adjustment. If amending for part-year or non-residents, Form 511NR should be used. Remember to include a copy of the Federal Form 1040X or 1045, and if available, IRS refund or payment documentation, before the expiration of the Statute of Limitations. This ensures your amended return is processed accurately.
How do I include or claim exemptions for dependents on my Oklahoma State Tax Return?

For claiming dependents on your Oklahoma State Tax Return, you follow the same procedure as you do on your federal return. Simply include the same number of dependents as reported to the IRS. It's important to note that if you can be claimed as a dependent on another person's tax return, you cannot claim personal exemptions on your Oklahoma return; this includes not claiming an exemption for yourself.
What if I have questions about my Oklahoma State Tax Refund?

If you have filed your return and have questions about your refund, you may contact the Oklahoma Tax Commission directly. For inquiries within the Oklahoma City area, call (405) 521-3146. If you're calling from outside the Oklahoma City area but within Oklahoma, dial (800) 522-8165, extension 1-3146. They can provide you with the status of your refund and address any other related questions.

Common mistakes

Filling out the Oklahoma State Tax form can seem straightforward, but mistakes can easily occur. Here are ten common errors to avoid:

Not completing the Federal income tax return first: The Oklahoma tax return relies on information from your Federal return. Failing to file your Federal return first can lead to inaccuracies.
Rounding errors: When transferring amounts from your Federal return, always round to the nearest dollar. Small rounding mistakes can compound and affect your tax calculation.
Choosing the wrong form: Oklahoma offers different forms like the 511 and 511EZ. Picking the wrong form for your situation can result in missed exemptions or incorrect filings.
Filing status issues: Your filing status on your Oklahoma return should generally match your Federal return. However, exceptions apply, such as when one spouse is a non-resident. Misreporting your status can lead to complications.
Ignoring exemption terms: Failing to properly claim exemptions, especially for those 65 or over or legally blind, can lead to overpayment of taxes.
Forgetting to include Form(s) W-2 or 1099: Your return cannot be processed without these forms if you're employed and receiving wages or salaries.
Omitting social security numbers: Both your and your spouse's social security numbers are required. Errors or omissions can delay processing.
Incorrect deductions for U.S. Government obligations: Not properly scheduling or documenting interest from U.S. Government obligations can lead to falsely inflated income figures.
Overlooking Oklahoma or Federal retirement income exemptions: You or your spouse might be eligible for retirement income exemptions. Failure to claim these can result in overpayment.
Not signing the return: An unsigned return is considered incomplete and will not be processed. If filing jointly, both signatures are necessary.

Being meticulous and double-checking the specifics of your situation can help avoid these common pitfalls, ensuring a smoother tax filing process.

Documents used along the form

The Oklahoma State Tax form is a crucial step in fulfilling your state tax obligations, but it's often not the only document you need to manage your taxes effectively. Along with this form, there are several other forms and documents that can play a vital role in ensuring your tax filing is complete and accurate. Let's explore these important documents that often accompany the Oklahoma State Tax form.

Form W-2 (Wage and Tax Statement): This form is issued by employers to report an employee's annual wages and the amount of taxes withheld from their paychecks.
Form 1099 (Various Types): These forms are used to report income from sources other than wages, such as independent contractor income (1099-NEC), interest and dividends (1099-INT and 1099-DIV), and other types of income.
Form 1040 (U.S. Individual Income Tax Return): The federal tax return form that needs to be completed before the Oklahoma State Tax form, as the information from the 1040 form helps in filling out the state tax form.
Schedule E (Supplemental Income and Loss): A federal form used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.
Form 504 (Application for Extension of Time to File): This form is for requesting an extension if you need more time to file your Oklahoma State Tax return.
Form 538-S (Sales Tax Relief Credit): Eligible Oklahoma residents can apply for a sales tax relief/refund using this form. It's especially relevant for low-income individuals and families.
Direct Deposit Authorization Form: While not specified by a form number in the provided content, this document allows taxpayers to receive their refunds directly in their bank accounts, speeding up the refund process.
Form 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.): This form reports distributions from retirement or tax-deferred accounts.
Form OW-8-ES (Oklahoma Estimated Tax Worksheet): For those who need to make estimated tax payments throughout the year, this worksheet helps calculate the amount to pay.

These forms and documents are pivotal in providing a comprehensive view of your financial picture for the tax year. They ensure that you report all income accurately and claim all the deductions and credits you're entitled to. Various situations and types of income require different documentation, so it’s important to understand which forms apply to your specific circumstances. If you have questions or need further clarification, consider seeking assistance from a tax professional or the Oklahoma Tax Commission. Proper preparation and organization of these documents can make the process of filing your state and federal taxes much smoother.

Similar forms

The Oklahoma State Tax form shares similarities with the Federal Income Tax forms, such as the 1040 and 1040EZ. Like the Federal forms, the Oklahoma 511 and 511EZ require taxpayers to report their income, calculate allowable deductions, and determine the tax owed or refund due based on their financial activity for the year. Importantly, the Oklahoma tax form instructions explicitly state that taxpayers must complete their federal return before starting the state return, underscoring the interconnectedness of the two. This dependency ensures consistency in reported income and allows for adjustments based on federal taxable income, similar to how federal forms operate.

Form 540, the Discover Card Payment Authorization Form included in the Oklahoma State Tax packet, resembles the IRS Direct Pay system or other credit card payment forms provided by the IRS for federal tax payments. Both serve the purpose of facilitating tax payments, albeit through different methods. Form 540 specifically allows Oklahoma taxpayers to use their Discover Card for payments, while the IRS offers various electronic payment options for federal taxes. The similarity lies in the convenience offered to taxpayers for settling their tax liabilities using modern financial tools.

The instructions for utilizing direct deposit, exclusive to the 511EZ form in the packet, are akin to the direct deposit options available for federal tax refunds. Just as the IRS encourages filers to receive their federal tax refunds via direct deposit for expedience and security, Oklahoma provides this option for state tax refunds. This method benefits taxpayers by ensuring they receive their refunds more quickly compared to traditional paper checks, and reduces the risk of lost or stolen refunds.

The estimated income tax guidelines, including the OW-8-ES form for Oklahoma, parallel the federal estimated tax process and the 1040-ES document. These estimated tax forms are intended for individuals whose income is not subject to sufficient withholding, requiring them to make quarterly estimated tax payments. Both Oklahoma’s and federal systems aim to assist taxpayers in managing their obligation to pay taxes as they earn or receive income throughout the year, minimizing year-end tax surprises.

The discussion on residency, part-year residency, and non-residency within the Oklahoma tax instructions mirrors federal tax requirements for determining filing status based on domicile, income source, and physical presence. These rules impact how income is taxed and which credits or deductions may be claimed, emphasizing the taxpayer’s connection to the jurisdiction. The consideration of residency status is crucial in both federal and state contexts to ensure correct tax liability calculation.

Oklahoma’s 511NR form for non-residents and part-year residents has counterparts in various states and the federal system, designed to accommodate taxpayers who live in one state but earn income in another, or who move between states during the tax year. Like its federal equivalent, the 511NR addresses the complexities arising from having income sources across different tax jurisdictions, ensuring that taxpayers fulfill their obligations in a fair and accurate manner.

The options for amending a return using the 511X form mirror the federal process of submitting an amended return through Form 1040X. This feature accommodates the need to correct or update a tax return post-submission, whether due to IRS adjustments to a taxpayer’s federal income, overlooked deductions, or other reasons that could affect the individual’s tax liability. The ability to amend a return ensures that taxpayers can rectify errors and settle their tax accounts correctly.

Dos and Don'ts

When preparing your Oklahoma State Tax form, it's important to pay close attention to detail and follow the instructions carefully. Here are 10 dos and don'ts to help ensure your tax filing process is smooth and error-free.

Do complete your Federal income tax return before starting your Oklahoma State Tax form since it's necessary for accurate reporting and calculation.
Do ensure that your return is postmarked by the filing deadline to avoid late penalties.
Do round all amounts to the nearest dollar as this simplifies the calculation process.
Do carefully read all instructions before beginning to fill out your form to avoid common errors.
Do include copies of all required documents, such as Forms W-2 or 1099, with your return.
Don’t use the 511EZ form if you have adjustments to your Federal Adjusted Gross Income, claim any credits other than the two exceptions, or are filing after April 15.
Don’t overlook the direct deposit option for refunds if filing with Form 511EZ, as this can expedite your refund.
Don’t ignore the requirement to file a declaration of estimated tax if you expect to owe $100 or more beyond your withholdings.
Don’t forget to sign and date your return. If filing jointly, both partners must sign.
Don’t hesitate to contact the Oklahoma Tax Commission if you have questions or need assistance. Utilize their phone numbers or website as a resource.

By adhering to these guidelines, you can help ensure that your Oklahoma State Tax form is complete, accurate, and submitted on time. Remember, careful preparation and attention to the instructions can prevent delays and avoid unnecessary errors on your tax return.

Misconceptions

Understanding the Oklahoma State Tax form and its instructions can be tricky. Below are six common misconceptions about the Oklahoma State Tax form process, corrected for clarity:

Only paper forms are accepted for filing. This is incorrect. While paper forms are still widely used, Oklahoma residents have the option to file their taxes electronically, either through a tax preparation service or directly via the Oklahoma Tax Commission's website. This digital option can facilitate faster processing of returns and refunds.
You must use the 511EZ form if your taxes are simple. This isn't always the case. Although the 511EZ form is designed for simpler tax situations, some taxpayers might find their financial circumstances don't meet the specific criteria for this form. It's essential to review the qualifications for each form, as outlined in the tax packet, to determine the one that best fits your situation.
You cannot pay your taxes using a credit card. The Oklahoma State Tax packet includes a Form 540: Discover Card Payment Authorization Form, indicating that taxpayers can, indeed, pay their taxes with a Discover credit card. This provides a convenient payment option for those who prefer not to pay directly from their bank account or via check.
Residents and non-residents file the same tax forms. This is not true. Oklahoma provides different forms for residents, part-year residents, and non-residents to accommodate variations in their tax obligations based on residency status and income source location. Non-residents and part-year residents should use the 511NR packet, specifically designed for their circumstances.
All income is taxable in Oklahoma. While Oklahoma residents are taxed on their worldwide income, there are specific exclusions. For example, income from real and tangible personal property located out of state, business activities conducted out of state, and gains/losses from the sale or exchange of real property located out of state are not subject to Oklahoma state tax. Additionally, certain government and military retirement benefits are eligible for exclusion or partial exclusion.
Direct deposit is available only for taxpayers who file Form 511EZ. Initially, the option for direct deposit of refunds was exclusively offered to filers of the 511EZ form. However, this service has been extended to include filers of the Form 511, expanding the convenience of directly depositing refunds into taxpayers' bank accounts, regardless of the complexity of their tax return.

Correcting these misconceptions ensures a smoother tax filing experience and helps Oklahoma taxpayers take full advantage of the options and benefits available to them.

Key takeaways

When it comes to filing your Oklahoma State Tax form, it's critical to approach the task with a clear understanding of the process and requirements. This not only helps in ensuring accuracy but also in maximizing potential benefits. Below are five key takeaways that individuals should keep in mind when preparing their Oklahoma State Tax return:

Choose the correct form: Oklahoma provides different tax forms for residents, part-year residents, and non-residents. Residents and part-year residents will use Form 511 or 511EZ, while non-residents who have income from Oklahoma sources must use Form 511NR. Ensure you use the form that matches your residency status for the entire tax year.
Round numbers to the nearest dollar: When completing your Oklahoma return, you should round all amounts to the nearest dollar. This simplification step is meant to streamline the calculation process. For instance, you would round $2.01 to $2.00 and $2.50 to $3.00.
Deadlines matter: Your return must be postmarked by April 15th of the year following the tax year. If you anticipate needing more time to file your return, Oklahoma allows extensions through Form 504. However, remember that an extension to file is not an extension to pay any taxes owed by the original deadline.
Include all necessary documentation: An often overlooked but crucial aspect of filing your tax return is including all necessary documents. This includes copies of Form(s) W-2 or 1099 with your return. Without these documents, processing your return can be delayed, or your return may not be processed at all.
Understanding exemptions and deductions: Oklahoma's state tax form allows for several exemptions and deductions, including those for government or federal retirement benefits, Social Security benefits, and interests on U.S. government obligations. Taxpayers, especially those 65 years or older, need to understand how to apply these exemptions to maximize their benefits correctly.

By keeping these key points in mind, taxpayers can navigate the complexities of the Oklahoma State Tax form with greater ease and confidence, potentially leading to smoother processing and potentially more favorable tax outcomes.

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Oklahoma State Tax Example

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Guide to Writing Oklahoma State Tax

Understanding Oklahoma State Tax

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Documents used along the form

Similar forms

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Misconceptions

Key takeaways

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