Oklahoma non-resident taxing Social Security?

[xeddog]

I am a California resident filing a Oklahoma NON-resident return (I have not been a Oklahoma resident since 1947) to report a lease bonus, and royalties for mineral rights.  This bonus is just over $40,000, and the royalties bring the total to about $42,000.  That is the only income I have from Oklahoma, but I saw on the state return that Oklahoma is taxing me on some of my Social Security benefits, bring my total income to over $63,000.  That can't be right, can it?

Wayne

[BillM223]

As you suspect, Oklahoma does not tax Social Security benefits. However, since you are doing a part-year/nonresident return, TurboTax might have asked you what amount of Social Security benefits you received when you were a resident. Is it possible that you answered a question like that?

See Instructions for line 6: "Social Security Benefits If you were a part-year resident, you must enter the part of the federal taxable amount that was received while you were a resident. Do not enter any amount received during the period you were a nonresident."

[xeddog]

I do remember a question like that for other incomes, but not for SS.  I was not a resident of OK for any part of the year.

[BillM223]

I just stepped through the Online product and it not only did not include the SS benefits in OK, but also didn't even have such a question as I though it might.

So we have two choices:

1. You pay for your product, then look at the output before you file to see if the issue is obvious to you, or

2. You send me a token  (a sanitized version of your return) so I can see what the issue may or may not be.

The problem here is that we are rapidly approaching the the end of tax season, so if you want to do this, you need to do it now. Please follow the instructions below:

TurboTax Online:  

Click Tax Tools in the menu to the left.

Click Tools, and then

Click Share my file with Agent.

A pop-up message will appear. Click OK to send the sanitized diagnostic copy to us.

Provide the token number that is generated onto this thread.

TurboTax Desktop:

Select Online menu if the customer is using Windows. Select “Help” if using a Mac.

Select Send Tax File to Agent.

A pop-up message will appear, and the customer will select, Send. If using Mac "Send Tax File to TurboTax Agent" 

Note: Desktop will save a file to your computer unless you uncheck the box.

Another message will appear. Provide the token number that is generated onto this thread.

At the bottom of your reply (with the token) add "@" "BillM223" (without the space in between) so I will be notified.

This will let us see what is happening on your return. Thanks.

[xeddog]

How would I sanitize something like this??

Wayne

[AliciaP1]

When you create the token, TurboTax masks (sanitizes) all your personal information so you do not have to worry that we see any personal details about your return.  We only see the dollar amounts applied on the forms your return is using to report.  It's the only way we can help you out with this specific error on this public forum.  Just follow the steps provided by @BillM223.

@xeddog 

[xeddog]

Thanks for your help.  Here is my sanitized return.  Token 1128551 @BillM223"

[BillM223]

Your Social Security is not being taxed in Oklahoma; however, the tax process on the OK nonresident return is quite convoluted.

First (all line references are to the OK511NR), line 1 is your lease and bonus. Line 2 is the AGI from the 1040. Line 5 is the taxable portion of your SS benefits (this is a subtraction from federal income).

Lines 7 and 8 are AGI from All Sources (Line 4 less Line 8). Yes, this sounds odd, but you have AGI from OK sources and AGI from All Sources (which is everyone other then OK).

Then, starting with AGI from All Sources, we subtract OK Itemized Deductions and OK Exemptions, to get OK Taxable Income. This last amount is somewhat larger than your lease and bonus, but it does not include your SS benefits.

You might think that your OK taxable income should just be your OK source income, but it's not. It's all your other income minus your OK source income. The fact that these are are within 10% of each other can lead you to think that the SS must be included, but it's not.

The $63K is the AGI from All Sources, not the OK taxable income.