Retirement tax questions

My teacher’s retirement pension changed from pension to wages when transferred to Oklahoma state form.

I prepared an Oklahoma state income tax return and teacher's retirement pension was not changed to wages.  

The Pension Exclusion is reported on line 2 of the Oklahoma state tax form 511.

Please clarify what is happening in your Oklahoma state income tax return.

You may deduct up to $10,000 (for each eligible taxpayer) of these retirement benefits from your Oklahoma income:

- Civil Service retirement from the United States
- Oklahoma Public Employees Retirement System of Oklahoma
- Oklahoma Teacher's Retirement System
- Oklahoma Law Enforcement Retirement System
- Oklahoma Fire Fighters Pension and Retirement System
- Oklahoma Police Pension and Retirement System
- Employee retirement systems created by counties
- The Uniform Retirement System for Justices and Judges
- Oklahoma Employment Security Commission Retirement Plan
- Employee retirement systems created by municipalities
- United States Retirement Board benefits included in your federal income

In the Oklahoma state income tax return, see the screen About Your Retirement Benefits.