Does investment income need to be reported on Part-year state return?

[pih321]

In 2018, I lived in Oklahoma for 10 out of 12 months and then moved to Texas. For that year, while I lived in Oklahoma, I did not have any earned income. The only income I received was from investment income in the form of dividends and capital gains. My question is, do I have to file a part-year return for Oklahoma due to my investment income? Also, since I’m now a resident of Texas, I would presume that any earned income I have from a job would not be taxed in Oklahoma (or Texas for that matter). 

[DanielV01 · Accepted solution]

Whether or not you file an Oklahoma part-year return will depend on whether or not any of the income you have reported to you was received while you lived in Oklahoma, and if the amount to be reported creates a filing requirement for you.  If both are true, you would have to file a Part-Year Oklahoma return for any of this income that should be reported to Oklahoma.  (If unsure, you should prorate the amount of income reported by multiplying the amount of income you are reporting by 10 and dividing by 12 to determine the amount to report to Oklahoma).

Going forward, you are correct.  If you have a job in Texas and are living in Texas you will not pay Oklahoma tax on that income, nor will you pay Oklahoma tax on any income you earned in Texas after moving to Texas last year.  (You may, however, have to pay tax on any income you earned in Texas while still living in Oklahoma.