I am SO confused with this Oklahoma Non Resident state tax return. It says and I quote "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 511NR. 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. The tax is then calculated. At this point, the tax 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.
So if I understand this, this mean that even though I live in Texas and have all my life, earn a TMRS income along with social security but work in oklahoma - H & R Block is telling me I have to pay taxes on my retirement income not JUST the money I make in Oklahoma. I have called that Okla Tax Commission and they are confused and keep telling me they will have to talk with the auditors to get an explanation on this. Seems to me it is straight forward - pay taxes only on the money you earned but they Form 511NR is a nighmare to complete. I would welcome any help with this.
