BillM223
Expert Alumni

State tax filing

The Oklahoma Instructions for form 511-NR state:

"HOW NONRESIDENTS AND PART-YEAR RESIDENTS ARE TAXED

 

The Oklahoma taxable income of a part-year individual or nonresident individual shall be calculated as if all income were earned in Oklahoma, using Form 511-NR. The Federal Adjusted Gross Income (AGI) will be adjusted using the Oklahoma adjustments, allowed in 68 Oklahoma Statutes (OS) Section 2358, to arrive at AGI from all sources. The AGI from all sources is used to determine the taxable income. After the taxable income is calculated, it is prorated using a percentage of the AGI from Oklahoma sources divided by the AGI from all sources. This prorated tax is the Oklahoma tax."

 

It appears that TurboTax relies on the state income fields on your W-2 (boxes 15 through 17) to know how much income to assign to Oklahoma. In your case, I suspect that you had no tax withheld for Oklahoma, so the ratio of OK income to federal income was zero, so the amount of OK income on your return is zero.

 

However, the Oklahoma Instructions state (on page 5 of the above link):

"The Oklahoma source income of a part-year resident is the sum of the following: (1) All income reported on your federal return for the period you are a resident of Oklahoma, 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; and (2) The Oklahoma source income for the period you were a nonresident of Oklahoma."

 

You earned half of your income (or whatever amount) while still a resident in Oklahoma. Therefore, to do this right, you need enter the amount of your wages (were you an employee of that Texas company?) in box 16 on your W-2, and OK in box 15 (you may have to make up a number for the rest of box 15 - since no money was actually withheld in box 17, the number won't matter).

 

Now go through your Oklahoma return again, and see what happens. And if you were a contractor and not an employee come back and tell us.

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