Thank you for your response (although I didn't get a notice that you responded until 4am this morning and I mailed the forms off yesterday). On Form 511NR-B, under Line 6 Federal Amount, "Other retirement income", I was only allowed to input a maximum of $20000 of the $40000 made via my pension. So, according to their instructions, I was taxed on the $20,000 I couldn't claim. I called the Oklahoma Tax Commission twice about this and, both times, they told me they couldn't answer my question - that I should seek a tax professional. The tax professional would cost me more than the refund difference. That is why I posted on here.
I do thank you for your response and if you have anything to add. I may end up working in OK again this fall for a couple of days and you have shed some light on how to proceed.
