My Husband and I moved to Kansas from Oklahoma in 2015. We still owned our Oklahoma home until April 2016. We did not earn any income in Oklahoma other than the sell of our home. Do we need to still file an Oklahoma state tax return for 2016?
It depends but if you are claiming the home gain exclusion on your home and have no depreciation recapture to report then you will not need to report the sale on either your federal or state income tax returns and will not have an OK nonresident state income tax filing.
You do not need to enter or report the sale of your primary residence if:
You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See Sale of Your Home for more information on the exclusion.
Please note - When you sell a property that was used as a rental or you took a home office expense on, you must pay 25 percent recapture tax (also referred to as Section 1250 recapture) as well as regular state income tax on the depreciation you claimed. (Remember the IRS will assume that you claimed the correct amount of depreciation every year—this is true regardless of whether you actually claimed any depreciation on your tax return).
If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S