My wife and I live/work in Texas (rental), and are considering buying a home in Oklahoma as we plan to settle down there in a few years, considering I won't be living in the house OR earning money in the State of Oklahoma, will I owe state income tax just

 

Investors & landlords

No you will not since you will have no income from OK and OK will not be your state of residence  so don't homestead the property. 

Investors & landlords

Willl you be renting out the OK home in the meantime?

Investors & landlords

Nonresidents are required to file an Oklahoma income tax return when they receive gross income of at least $1,000 of Oklahoma source income.

Investors & landlords

We will not be renting the home or earning any money in the State of Oklahoma. My only concern at this point is that our "home" in Houston is an Apartment. We would be in the State of Oklahoma approx. one month a year (several 2 - 4 day visits)

Investors & landlords

You will not file an OK return just for visiting a property you own.
DannyT
New Member

Investors & landlords

Looking for any updates to this question.  I also want to purchase a home in Oklahoma but will work in Texas only and split time living in Texas and Oklahoma.  No income from the state of Oklahoma.  Confirming I will not have to file an Oklahoma tax return. 

Investors & landlords


@DannyT wrote:

Looking for any updates to this question.  I also want to purchase a home in Oklahoma but will work in Texas only and split time living in Texas and Oklahoma.  No income from the state of Oklahoma.  Confirming I will not have to file an Oklahoma tax return. 


Your question is the exact opposite of the question that started this conversation.

 

In general, if you are a resident of state A (and if state A has a state income tax) you must file a state A income tax return and report all your world-wide income and pay tax on it, no matter where it is earned.  If you live in OK and work in TX, you will owe state income tax in OK.  

 

If you live in state A and work in state B, you sometimes also owe tax in state B.  This gets tricky, and state A usually gives a tax credit for taxes paid in state B, so your total state tax will not be higher than the higher of state A or B would be alone.  But since Texas does not have a state income tax, that is not an issue for you.  If you will be a resident of Oklahoma, you will owe Oklahoma state income tax on all your income no matter where you work.

 

It may be possible to arrange things so that you are a resident of Texas and a non-resident (visitor) in Oklahoma, but if you arrange it that way on paper only and not in real life, Oklahoma will still try and tax you and that's when things get real ugly.  States bordering Texas all know this trick.   You need to be a bona fide resident of Texas, and a worker in Texas, to not pay income tax in another state where you have a home and spend significant time.

Investors & landlords

I worked in Texas but left my job when we moved to Oklahoma in August this year, I have not been working since May 2022. Will I be required to pay state income tax to Oklahoma even though I never lived there while earning that income? 

My husband, still works out of Texas but lives in Oklahoma since August 2022, is he required to pay state income tax for the entire year, even though he was a non resident for over 6 months prior? 

(we file separate not joint) thank you for any information to help figure this out. 

 

 

TomD8
Level 15

Investors & landlords

All the income that you and/or your husband earned after becoming residents of Oklahoma is taxable by Oklahoma, regardless of its source.

You became residents of Oklahoma when you began living there with the intent of making it your main, primary residence.

 

The income your husband earned in Texas prior to his becoming an Oklahoma resident is not taxable by Oklahoma.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Carl
Level 15

Investors & landlords

If you move from state A to State B mid-year, with the intent of making state B your primary residence, then you will be filing two state tax returns *if* both states tax personal income. Both state returns would be part-year resident returns and a non-resident return would not be involved in this scenario.

In your case, since State A (Texas) does not tax personal income, I believe you would be filing a part-year resident return for State B (Oklahoma) only. State B will tax all of your world-wide income earned from the time you became a resident of state B.

Investors & landlords


@MrsBe1 wrote:

I worked in Texas but left my job when we moved to Oklahoma in August this year, I have not been working since May 2022. Will I be required to pay state income tax to Oklahoma even though I never lived there while earning that income? 

My husband, still works out of Texas but lives in Oklahoma since August 2022, is he required to pay state income tax for the entire year, even though he was a non resident for over 6 months prior? 

(we file separate not joint) thank you for any information to help figure this out. 

 

 


Filing separately is rarely a good idea, you almost always pay more tax that way and some credits and deductions are reduced or disallowed. You may want to pursue that. 

 

Your spouse will file a OK part-year resident return.   OK-sourced income is income that is paid to him while he physically lived or worked in OK.  The tax return will ask him to allocate his income to OK, either based on actual wages paid for the time he was living in OK, or by adding up the number of days he lived in OK divided by the total number of working days in the year.  (You don't need to worry about the exact math used, Turbotax will do that.)  He must include days when he was living in OK either on a permanent or transient basis.  For example, if your spouse works in Texas but lives in OK, his OK taxable income is based on how many days he was living in OK, both as a transient (suppose you had a hotel for a week while house shopping and he commuted to work), and as a permanent resident (from the date he moved).  

 

You would file a part-year resident return for OK only if you had OK-sourced income.  OK-sourced income is income that is paid to you while you physically lived or worked in OK.  You might have OK source income if you lived in OK while house hunting and commuted to your job in TX, even if it was temporary housing.  Or, you might have OK income if you receive bank interest, investment income, lottery prizes, or other income after the date you moved to OK.