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Level 2

Solved

Oklahoma non-resident

Forum|Forum|6 years ago
February 24, 2020
2 replies
0 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.

LukeRow

Level 2

Make sure you are only including the state sourced income to Oklahoma when you prepare your nonresident Oklahoma return. Sometimes you need to make adjustments to the income source when prompted to in the state interview section of the program. For example, if you had $10,000 in wages everywhere but only $5,000 was from Oklahoma sources, you may get a screen asking you how much was from Oklahoma sources. Review your entries to ensure only the $5,000 is reflected.

Please see below for income that is taxable to nonresidents of Oklahoma to ensure your income is being treated correctly. Essentially if it is from Oklahoma sources, even though you are a nonresident, it could still be taxable.

OK nonresident income

@Crafty53

I'm pretty confused as well.

PLEASE HELP!

I'm a Texas resident who worked in Oklahoma for five months in 2020 with a company that has a Kansas address on my W2 form.

For some reason, HR didn't deduct any Oklahoma state income tax from my pay for any month in 2020 (but is deducting it for the months I've worked in 2021). I haven't yet received a response from HR as to why this happened.

I made more than $1000, so am trying to file my state taxes, but BOTH Turbo and H&R Block are telling me that I don't owe any taxes to OK for 2020. I've tried to run it as both a non-resident and part-time resident....and still it says that I don't owe anything, H&R allows me to manually go into the form and change my pay in OK to what I made and the taxes owed does change to $1300....but then it tells me that because I'm manually over-riding their program that I'm no longer allowed to e-file.

It also states that if I turn it in this way, I would be guilty of underpaying taxes to the state (??) and face multiple penalties.

I'm just not sure what to do and feel like I'm missing something that's pretty obvious to everyone else.

I'm leaning toward just turning in TurboTax's version of the return. Everything I put in is 100% accurate, so I just don't understand why I'm not having to pay taxes on this money.

I don't have the funds to see a "tax professional," so I pretty frustrated right now.

What am I missing??

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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