@pbandjb99. Given this situation, you may need to double-check certain entries in the program. First, go through the W-2 screens. The very last screen should ask: Do Any of These Special Circumstances Apply? Make sure that the box "Active Duty Military Pay" is unchecked. If you do not receive the screen, this could be because you set your profile at the Personal Information section to state that you are still a servicemember. Review your entries to ensure that you are not associated with the program as an active-duty servicemember since your role is now civilian.
However, it may well be that the income still is not taxed in Oklahoma. First of all, if you are claiming the Foreign Income Exclusion, (since you were outside of the United States for at least 330 days of the prior 365 days before returning to the United States), the income may be excluded from Oklahoma regardless. (I did not see any information either in the Oklahoma tax manuals or on their Tax Commission website to either confirm or deny this). Also, this is wage/salary income, and not a reimbursement. Since this wage/salary was made while you were still a Florida resident, it could well be that even if the income is not excluded for Federal purposes, it still is excluded from Oklahoma income. And, again, even if Oklahoma insists that this income should be reported to Oklahoma, only 1/2 of it should be taxable to Oklahoma. I did search to see how Oklahoma treats it and did not find anything conclusive.
Given the above, if you make the needed entry changes but TurboTax still excludes the income, I believe that it is being correctly reported. But keep documentation of your move dates and how and when that moving reimbursement, now considered as wages, was paid to you, in case Oklahoma should ask otherwise.
What I can say is that you did not become an Oklahoma resident until you physically returned from Germany and established residency in Oklahoma. Prior to that, you were a Florida resident. Since the income for the move was paid in connection with income paid while you were still a Florida resident, and was not earned in Oklahoma, I would lean to stating that the income should still be excluded from Oklahoma. However, the income is not excluded under the provision of being active-duty pay, so you do want to make sure that the income is not marked as such in TurboTax.
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