Oklahoma non-resident

Forum|Forum|6 years ago
February 24, 2020
9 replies
70 views

I worked in Oklahoma for 3 days in 2019 as a non-resident. I am retired and drawing a pension earned in Illinois. It looks like I have to pay taxes on part of my pension along with the actual pay I received while in Oklahoma and traveling to and from Oklahoma. Can anyone verify if that is correct?

Best answer by DawnC

No, that is not correct. If you owe and pay any tax based on the money you earned in OK, you will receive a credit for that on your IL tax return. Also, when you prepare the OK nonresident return, you will be given an opportunity to allocate your income - all of your pension income should be allocated to your resident state and subtracted from income on your OK return, see details below.

For Oklahoma Nonresidents - Individuals are required to file if they received $1,000 or more Oklahoma-source gross income, which includes:

• Salaries, wages, and commissions for work performed in Oklahoma.

• Income from an unincorporated business, profession, enterprise, or other activity as the result of work done, services rendered, or other business activities conducted in Oklahoma.

• Net rents and royalties from real and tangible personal property located in Oklahoma.

• Gains from the sales or exchanges of real and tangible personal property located in Oklahoma.

• Income received from all sources of wagering, games of chance, or any other winnings from sources within this state.

Nonresidents do not include any entry for the following:

• Taxable IRA distributions (line 4).

• Taxable pensions and annuities (line 5).

• Taxable Social Security benefits (line 6).

• Taxable refunds (line 8).

• Alimony received (line 9).

• Unemployment compensation (line 14)

DawnCAnswer

Level 15

For Oklahoma Nonresidents - Individuals are required to file if they received $1,000 or more Oklahoma-source gross income, which includes:

• Salaries, wages, and commissions for work performed in Oklahoma.

• Income from an unincorporated business, profession, enterprise, or other activity as the result of work done, services rendered, or other business activities conducted in Oklahoma.

• Net rents and royalties from real and tangible personal property located in Oklahoma.

• Gains from the sales or exchanges of real and tangible personal property located in Oklahoma.

• Income received from all sources of wagering, games of chance, or any other winnings from sources within this state.

Nonresidents do not include any entry for the following:

• Taxable IRA distributions (line 4).

• Taxable pensions and annuities (line 5).

• Taxable Social Security benefits (line 6).

• Taxable refunds (line 8).

• Alimony received (line 9).

• Unemployment compensation (line 14)

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boisedanAuthor

Level 2

Thank you for your response (although I didn't get a notice that you responded until 4am this morning and I mailed the forms off yesterday). On Form 511NR-B, under Line 6 Federal Amount, "Other retirement income", I was only allowed to input a maximum of $20000 of the $40000 made via my pension. So, according to their instructions, I was taxed on the $20,000 I couldn't claim. I called the Oklahoma Tax Commission twice about this and, both times, they told me they couldn't answer my question - that I should seek a tax professional. The tax professional would cost me more than the refund difference. That is why I posted on here.

I do thank you for your response and if you have anything to add. I may end up working in OK again this fall for a couple of days and you have shed some light on how to proceed.

Crafty53

Level 2

I am SO confused with this Oklahoma Non Resident state tax return. It says and I quote "The Oklahoma taxable income of a part-year individual or nonresident individual shall be calculated as if all income were earned in Oklahoma, using Form 511NR. The Federal Adjusted Gross Income (AGI) will be adjusted using the Oklahoma adjustments allowed in 68 Oklahoma Statutes (OS) Section 2358, to arrive at AGI from all sources. The AGI from all sources is used to determine the taxable income. The tax is then calculated. At this point, the tax is prorated using a percentage of the AGI from Oklahoma sources divided by the AGI from all sources. This prorated tax is the Oklahoma tax.

So if I understand this, this mean that even though I live in Texas and have all my life, earn a TMRS income along with social security but work in oklahoma - H & R Block is telling me I have to pay taxes on my retirement income not JUST the money I make in Oklahoma. I have called that Okla Tax Commission and they are confused and keep telling me they will have to talk with the auditors to get an explanation on this. Seems to me it is straight forward - pay taxes only on the money you earned but they Form 511NR is a nighmare to complete. I would welcome any help with this.

DawnC

Level 15

On the form you are referencing, 511NR-B, there should not be any pension income to exclude. The amounts from your pensions should not be included on 511NR-1 (Line 5) - see the instructions on page 9 of the non-resident packet attached. On your OK nonresident return, your pension income should be 0, so there is no pension income to exclude on Form 511NR-B. The only income that should be on your OK return is the wages you earned while you worked in OK. There should not be any additions or subtractions, so no need for 511NR-B.

Look at a printed copy of your 511NR, the Federal column should list all of your income and the OK Amount column should have only your OK income on Line #1 and Line #6. I hope that this helps and doesn't further confuse! 😉 @boisedan

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