Filing taxes for military members for Oklahoma residents

[tvedra]

My wife and I are both military, I am a resident of Texas and she is a resident of Oklahoma. Turbo tax recognized I was a Texas resident and didn't have to file a return for that state, however, it didn't show that same message for her for Oklahoma. As a result, do I need to try to file a state return for her for Oklahoma, even though I think military wages are exempt in that state.

[ToddL]

Where are you stationed?

[ToddL]

Also, even if her military wages are exempt from OK tax, she'd still have to file.

[tvedra]

We are both stationed in Germany. Is there a way to just file the state return for Oklahoma for her even though it will be zero? Turbo Tax was not showing how to file for her

[ToddL]

First, she is required to file a OK tax return. You can file a joint OK Non-Resident tax return (Form 511NR) without any adverse tax consequences 

From the 2016 Oklahoma Resident Individual Income Tax Forms and Instructions:

If you were an Oklahoma resident at the time you entered military service, assignment to duty outside Oklahoma does not of itself change your state of residence. You must file your return as a resident of Oklahoma until such time as you establish a permanent residence in another state and change your military records. 

(An Oklahoma resident filing a joint federal return with a non-resident spouse may have options on how to fle the Oklahoma return(s). See the attached document).

Here is the relevant section for you:  If an Oklahoma resident (either civilian or military) files a joint federal return with a nonresident military spouse, they shall use the same filing status as on the federal return. If they file a joint federal return, they shall complete Form 511NR and include in the Oklahoma amount column, all Oklahoma source income of both the resident and the nonresident. 

Since your income would not be "Oklahoma source income", you can file jointly and not have OK consider your income on the OK return.