After successfully entering my Oklahoma Return TurboTax using "Step-by-Step" it makes a last check but finds a "problem" and displays form 561 for "Capital Gain Deduction For Residents Filing form 511". The display error is to the effect about having to enter Federal ID number or Oklahoma location of the company. BUT no-where in the Federal Return was indicated that the stocks I sold were companies located in Oklahoma (they are not) so obviously I am not asking for a tax break in the state return. The form says "To exclude a gain or loss, check the box in the * column" and I did but it still will not let you continue and insists to enter more information about those companies! It will not let you continue with the self-check. That's a bug, right?
Can you please fix so I can continue my taxes and file? Is there something I did wrong?
The following is an answer that has worked for taxpayers in previous years. Try it and see if it works for you.
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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.
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.
Thanks for the quick response! I looks like work-around but it gets the job done.
Thank you very much!
I'm getting a really large dollar amount for capital gains on my return, but all I have sold were tax free bonds no stock. can find anything on my return that is incorrect, how do I get this number correct?
we can't see your returns so you will have o review every entry for those sales. you may have mistyped the sales price or the cost or even both for some securities. if these were OID muni bonds perhaps the cost does not reflect the OID amortization
I have this same issue. Showing I have 1440 errors but I can't check the "exception" box. Seems like a bug as I've re-done my state returns multiple times.
Is this for Oklahoma? @wujames0724 If so, have you tried the workaround from above? I have linked it here: capital gains outside of Oklahoma
You should be able to check the box if you are using TurboTax Desktop, but if you are using the Online software, you have to use the alternative steps that go through the OK state interview.
I'm having the same issue, though the workaround doesn't appear to be an option for me on TurboTax Online.
I am NOT presented with the "Summary of Oklahoma Capital Gains and Losses" screen and I have even deleted the state return and tried again. I am able to manually check the box to exclude a handful of my stock sales directly on the form, but the majority of the rows are not editable.
Any insight would be appreciated!
Have you tried the alternative steps provided by BillM223 for the online version of TurboTax? I have included them in this post for quick reference:
"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."
I tried to zero out all the gains, but couldn't find any "federal ID number" for each sale. Any clarification on that would be appreciated!
Also, TurboTax prompts for a categorization for each sale which is another field that causes errors but none of them seem to apply since I'm selling stock for companies outside of OK:
Michael, have you seen my latest reply in your other thread?
I stepped through my OK return, and reported what I saw. The next step will be for me to actually do screen shots, if need be.
The bug and workaround are still there in the 2024 desktop version of the OK state return. Be aware that the note telling you to check the box beside each sale is partially obscured by the "window" that opens within the form if you have more than about six transactions.
Just circling back to the threads I replied on to provide the solution that worked for me thanks to @BillM223 --
On that screen that says, "You May Not Need to File an Oklahoma Return" select 'Yes, I am required to file.' as opposed to 'No, I am not required to file... but I still want to'.