Oklahoma Military Filing Information
An Oklahoma resident is a person domiciled in this state for the entire tax year. “Domicile” is the place established as a person’s true, fixed, and permanent home. It is the place you intend to return to whenever you are away (as on vacation abroad, business assignment, education leave or military assignment). A domicile, once established, remains until a new one is adopted.
A part-year resident is an individual whose domicile was in Oklahoma for a period of less than 12 months during the tax year.
A nonresident is an individual whose domicile was not in Oklahoma for any portion of the tax year.
Members of the Armed Forces
Residency is established according to military domicile as established by the Soldiers’ and Sailors’ Civil Relief Act.
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 (as evidenced by the military’s Form DD2058). See the specific instructions for Schedule 511-C, line C1 - Partial Military Pay Exclusion ( in the TaxSlayer state section of the program).
Spouses of Members of the Military
When the spouse of a military member is a civilian, most states, Oklahoma included, allow the spouse to retain the same legal residency as the military member. They file a joint resident tax return in the military members’ State of Legal Residency (if required) and are taxed jointly under nonresident rules as they move from state to state. If the non-military spouse does not wish to choose the allowed residency of the military member, then the same residency rules apply as would apply to any other civilian. The spouse would then comply with all residency rules where living. An Oklahoma resident filing a joint Federal return with a nonresident spouse may have options on how to file the Oklahoma return(s).
The filing status for Oklahoma purposes is the same as on the Federal income tax return, with one exception. This exception applies to married taxpayers who file a joint Federal return where one spouse is a full-year Oklahoma resident (either civilian or military) and the other is a full-year nonresident civilian (non-military). In this case, the taxpayers must either:
1. File as Oklahoma married filing separate. The Oklahoma resident, filing a joint Federal return with a nonresident civilian spouse, may file his/her Oklahoma return as married filing separate. The resident will file on Form 511 using the married filing separate rates and reporting only his/her income and deductions. If the nonresident civilian also has an Oklahoma filing requirement, he/she will file on Form 511NR, using married filing separate rates and reporting his/her income and deductions. Form 574 “Allocation of Income and Deductions” must be filed with the return(s).
2. File, as if both the resident and the nonresident civilian were Oklahoma residents, on Form 511. Use the “married filing joint” filing status, and report all income. A tax credit (Form 511TX) may be used to claim credit for taxes paid to another state, if applicable. A statement should be attached to the return stating the nonresident is filing as a resident for tax purposes only.
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.
Each individual may exclude 75% of their retirement benefits or $10,000, whichever is greater, but not to exceed the amount included in the Federal Adjusted Gross Income. The retirement benefits must be from any component of the Armed Forces of the United States.
Oklahoma Government or Federal Civil Service Retirement
Each individual, may exclude their retirement benefits, up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. The total exclusion from all retirement benefit plans may not exceed $10,000 per retiree. (To be eligible, you must have retirement income in your name.) For any individual who claims the exclusion for military retirees on Schedule 511-A, line 5, the amount of the exclusion on this line cannot exceed $10,000 minus the amount already claimed on Schedule 511-A, line 5 (if less than zero, enter zero).
Note: The military wages of an enrolled member of a federally recognized Indian tribe shall be exempt from Oklahoma individual income tax when the income is compensation paid to an active member of the Armed Forces, if the member was residing within his tribe’s “Indian Country” at the time of entering service, and the member has not elected to abandon such residence per Rule 710:50-15-2. Provide a copy of your Form DD2058-2 “Native American State Income Tax Withholding Exemption Certificate” along with the information requested in paragraphs “a” and “b”.
Military Pay Exclusion
Oklahoma residents who are members of any component of the Armed Services may exclude 100% of their active military pay, including Reserve & National Guard pay, to the extent such pay is included in the Federal Adjusted Gross Income. Retired military see instructions for Schedule 511-A, line 4.
Other Subtractions from Income: Schedule 511-A
Military Member Killed in a Combat Zone:
-Payments received as a result of a military member being killed in a combat zone- Any payment made by the U.S. Dept. of Defense as a result of the death of a member of the Armed Forces who has been killed in action in a designated combat zone shall be exempt from Oklahoma income tax during the taxable year in which the individual is declared deceased by the Armed Forces.
-Income earned by an individual whose Military spouse was killed in a combat zone: Any income earned by the spouse of a member of the Armed Forces of the U.S. who has been killed in action in a designated combat zone shall be exempt from Oklahoma income tax during the taxable year in which the individual is declared deceased by the Armed Forces.
Support of the Oklahoma National Guard
You have the opportunity to donate from your tax refund for the benefit of providing financial relief to qualified members of the Oklahoma National Guard and their families. Donations will be placed in the Income Tax Checkoff Revolving Fund for the Support of the Oklahoma National Guard Relief Program. Monies, to assist Oklahoma National Guard members and their families with approved hardship expenses, will be expended by the Military Department. If you are not receiving a refund, you may still donate.
Please mail your contribution to: Operation Homefront Task Force, 3501 Military Circle, Oklahoma City, OK 73111-4398.