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Yes, it is.
You're entitled to deduct up to $10,000 of these retirement benefits from your Oklahoma income for each eligible taxpayer:
Each individual can deduct up to $10,000 of such retirement income.
Where do I deduct/take the deduction for $10,000 for my Oklahoma Teacher Retirement on Turbo Tax?
It depends. once you enter your 1099R in your return, there will be a follow-up question asking you the source of the income. Here you would indicate the is from Oklahoma Government Retirement. Once you check this box, $10,000 is automatically reported as an exclusion in the retirement worksheet in your Oklahoma state return and entered as a subtraction on Schedule A-1 in your Oklahoma return. It is also reflected in Oklahoma subtractions in Line 2 in Form 511.
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