Should I be filing Oklahoma form 561NR ?

[deversd]

I'm a resident of TX and work in OK. I started working in OK at the end of the year and I sold stock  in the middle of the year. TurboTax populated OK State Form 561NR  showing the  stock sale. The form requires entering the type of sale with options only for Oklahoma type properties being sold. Is this form applicable in my situation? If not, should I delete it? Is there something I answered incorrectly that triggered this form to show up?

[DDollar · Accepted solution]

Since you are working in Oklahoma, you do need to file a non-resident state tax return; however, as a Texas resident you do not have to report your investment income to Oklahoma.  You should not be filing  a Oklahoma 561 NR.  You can delete the form.

[krtshh]

I TRIED TO DELETE FORM.  IT COMES BACK ON TURBO TAX.  OR GIVES AN ERROR.

[deversd]

I just got off the phone with Turbo Tax. Oklahoma form 561NR should not be deleted but will exclude capital gains and losses. In the step-by-step method you will select "Edit" on the "Summary of Oklahoma Capital Gains and Losses" screen. On the Edit screen there is a check box that states "This property does not qualify for exclusion." Check this box and continue on the step-by-step method till Turbo Tax checks for errors. Assuming no other errors exist form 561NR should be correct. You can view in form 561NR in form view and see that the box on the form is checked. On form 561NR it clearly states "Check this box to exclude gain or (loss)." Sad thing, this only works if you select the box mentioned above in the step-by-step method.

[tvanvech]

Thank you for your input @deversd unfortunately I can't locate the "summary Oklahoma capital gains and losses" screen to do that so I'm still stuck. Tried to delete 561nr and it automatically comes back. So annoying.

[deversd]

To get to that screen. Open TurboTax, click on the STATE TAXES tab on the top (to the right of the FEDERAL TAXES tab). It should say “Let’s work on your state return.” Click on the Oklahoma button which is right below the “PERSONAL INFO” tab. “Federal Agency Bond Interest” question appears. I didn’t have this so I clicked no. The next screen is “Adjustments to Federal Income” click Done. The next page is “Summary of Oklahoma Capital Gains and Losses.” Then you click “Edit” for the gain/loss shown.

[tiepan-shi]

In case there are hundreds to clear, switch to form mode, and uncheck the boxes at the left

[M-M99]

Turbotax Premier has the same issue with Oklahoma form 561NR in their 2020 desktop program.  It is a bizarre problem, since in the STEP by STEP version you must use:   "Edit" on the "Summary of Oklahoma Capital Gains and Losses" screen (even though they may have nothing to do with Oklahoma if your capital gain or loss was from another state).  On the Edit screen there is a check box that states "This property does not qualify for exclusion." ..........THIS IS WRONG!   IT SHOULD SAY This property does qualify for exclusion.  Because if you check it on the Form View, then this issue gets resolved, but then you are only half way there.  Because after all of these gyrations, you still have to deal with the Date of the capital gain sales transaction, even though I had indicated $0 entry for Oklahoma portion.  This pops after running the error check one more time.  To resolve the sales date issue, I entered 12/31/2020, reran error check, came back to the same location, deleted the date, reran the error check and this time it worked.   This year I have had considerable issues with both Turbotax Business and Premier.  Transferring information from Business to Premier via Sch K-1, was not fun at all.

[donnacee]

DEVERSED's post above is correct. There is a bug in TurboTax, the work-around posted above is 100% counter-intuitive, but it works. Just stay in the Step-by-Step mode and do as suggested above, and it works out. I tried lots of other things including a long call with TurboTax support before realizing the suggested steps really do work. 

[susanc621]

Hi.  I put in the date as you suggested but it is asking for type of property and Fed ID numbers.  None of the stocks have to do with Oklahoma.  What now?  I appreciate your assistance.

[BillM223]

The following is an answer that has worked for taxpayers in previous years. Try it and see if it works for you.

***

You evidently have capital gains from sales outside of Oklahoma. The way to handle this in the Oklahoma is a bit confusing.

First, when you see the summary of Oklahoma Capital Gains and Losses, press Edit for each gain.

The next screen will read Oklahoma Capital Asset Location and Type for each sale. Check the box "This property does not qualify for exclusion". If you go to Form mode (if you are using the desktop software or have already paid for the Online product), you will see that the box in the far left column of form 561NR has been checked for that sale, indicating that you want to exclude a gain or loss (see form). 

This is completely counter-intuitive, but it gets you the result that you want, because it reports your Oklahoma gain as zero.

Note form 561NR is for nonresidents - I don't know if you are filing as a nonresident or what.

Alternative, you can not check the box, but enter the federal ID number for the sale. Then, on the next screen, enter the Oklahoma gain as zero. This will achieve the same result - no gain reported in Oklahoma.

P.S., I am told that it still works in 2021...

[Yakatak]

And...This problem still exists on the 2022 forms..    Doesn't TurboTax monitor this forum?