Royalities - Oklahoma

[ddav]

My son received over $1000  in Royalities from oil/land leases and received a 1099MISC. He is not a resident of OK and has no other income in the state. Does he need to file a OK tax return, and if so eligible to get refund on the 5% withheld or will he owe more?

Is this royalty to be entered as "Okla Source Income" in line 1 of 511-NR?

[SharonD007]

Yes, he will have to file an OK non-resident tax return since his income is over $1,000. Yes, the income will end up on line 1 of Form 511-NR.

Non-residents aren't required to file if their Oklahoma income is less than $1,000.  Refer to the Oklahoma Tax Commission website File Taxes. He will have to file a return to get his refund.

In the  Personal profile section, he needs to indicate that he made money in another state so TurboTax will list the non-resident tax return when he gets to the states section.

Also review the instructions for 2024 Oklahoma Inividual Income Instrucions for Nonresidents.

After he completes his federal tax return and he moves to the State Taxes sections, both his non-resident and resident state returns will be listed.  Prepare the nonresident (OK) tax return first. 

For additional information, refer to the TurboTax Help articles Do I have to file tax returns in more than one state?,  Why would I have to file a nonresident state return? and How do I file a nonresident state return?

[Edited 2/28/25|11:30am PST]

@ddav

[ddav]

what version of Turbo Tax do I need for this? He is a student filing FED, MD, and OK.

[SharonD007]

He can start off using Basic and based on his answers to the questions, TurboTax will guild him to the correct product.