Oklahoma 511NR-B - Return rejected

[JamesT81]

I efiled my OK return and it was rejected. This is from the reject email I received:

What happened

511NR-061 - Schedule 511NR-B, line 15 (OklahomaIncomePTE) Federal Amount Column (FederalAmount) cannot be greater than Oklahoma Amount Column (OklahomaAmount).

Line 15 is "Oklahoma income distributed by an electing PTE".  I received a K-1 and the OK Schedule K-1 Equivalent showed "Distributable Federal Income" of $50,000 and "Distributable Oklahoma Income" of $10,000. These are the figures put into Line 15 for Fed and OK, respectively.  There was also a statement with the K-1 which showed the same $10,000 for Royalty income & Total to Form 514, Schedule K-1 Equivalent.

The Partnership that generated the K-1 has income from several states, including OK. Therefore, the Federal amount would be higher than the OK amount.. so I'm confused as to why it was rejected. It seems like Federal must be equal to or greater than the OK amount no matter what. Do I need to enter something else into the Federal amount in order for the state to accept the e-file?

This is for an OK 2023 Form 511NR Non-Resident return.

[maglib]

@JamesT81  Oklahoma tax return starts with Federal income and then you adjust during the interview the amounts.  Seems some how you started only with OK sourced amounts.

See https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-NR-Pkt.pdf

Do note:

- Except as otherwise provided for in the Pass-Through Entity Tax Equity Act of 2019, every nonresident
with Oklahoma source gross income of $1,000 or more is required to file an Oklahoma income tax return. A nonresident partner may elect to be included in a composite partnership return; see Rule 710:50-19-1.

[JamesT81]

Thanks for the reply. My Federal return was done in TT and accepted.  My OK source income from the K1 was less than my Federal source income from the K1. I also have other OK source income but the error is for the values on said line which come from amounts on K1. Im still unclear exactly why I have this error when e-filing. TT does not give me an error in the review and check process. 

[maglib]

Take a look at the 511NR-B  and see what amounts there are.   It should start with Federal income then do allocations to OK.

Many k-1 entries need manual input into forms if you follow the screens.  Also many k-1's need to be input for each section.  

[JamesT81]

@maglib 
Sorry, I guess I wasn’t clear. 
511NR-B

line 15

federal = 50,000  OK = 10,000

for some reason this caused a reject. I inputted these values during Step by step interview. Reject message said Fed cannot be greater than state. This does not make sense to me. 

[JamesT81]

Maybe I just make them equal?

[maglib]

@JamesT81  see instructions for line 15, the federal is too high.  I gave you a link above here, it is again: https://oklahoma.gov/content/dam/ok/en/tax/documents/forms/individuals/current/511-NR-Pkt.pdf

Oklahoma Income Distributed by an Electing PTE
Federal Amount Column - If you are a member, either directly or indirectly, of an electing PTE, subtract the Oklahoma income covered by the election pursuant to the provisions of the Pass-Through Entity Act of 2019 (68 OS Sec 2355.1P1 et seq.). Provide a schedule listing the electing PTE, federal identification number, federal taxable income (loss) and
Oklahoma taxable income in Form 511-NR, line 2 that is covered by the election pursuant to this Act. Provide a copy of
the OTC acknowledgement letter.
Oklahoma Amount Column - Enter that part of the “Federal Amount” column that represents the electing PTE’s income
included in the “Oklahoma Amount” column on Form 511-NR-1.