No do not ignore it. You must enter it once for rents received and again for royalties received.
Yes you must file the Oklahoma (OK) return to report the income you received from property physically located in that state. Be sure to enter the OK return first, and then your resident state last.
The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
If you don't have tax in one of the states, then there is not going to be a credit for that state.
Review the link below if you have questions about a particular state.
States with no income tax - If you live in one of these states there is no credit available:
- Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming
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