ChildCare/Child Tax Credit
If your Federal Adjusted Gross Income is $100,000 or less and you are allowed either a credit for child care expenses or the child tax credit on your federal return, you are allowed a credit against your Oklahoma tax. Your Oklahoma credit is the greater of:
• 20% of the credit for child care expenses allowed by the IRIC. Your allowed federal credit cannot exceed the amount of your federal tax reported on your federal return.
• 5% of the child tax credit allowed by the IRC. This includes both the nonrefundable child tax credit and the refundable additional child tax credit. If your Federal Adjusted Gross Income is greater than $100,000
no credit is allowed.
Earned Income Credit
If your Oklahoma Adjusted Gross Income is less than your Federal Adjusted Gross Income, complete
Schedule 511-F to determine the amount to enter on line 16. You are allowed a credit equal to 5% of the earned income credit allowed on your federal return.
Credit for Property Tax Relief
Any person 65 years of age or older or any totally disabled person who is head of a household, a resident of and domiciled in this state during the entire preceding calendar year, and whose gross household income for such year does not exceed $12,000, may file a claim for property tax relief on the amount of property taxes paid on the household occupied by such person during the preceding calendar year. The credit may not exceed $200.
Sales Tax Relief/Credit
If you are required to file an Oklahoma income tax return, your return must be filed by April 15. An extension of time to file your return, including the April 20th due date for electronically filed returns, does apply to this credit.
To file for sales tax relief, you must be an Oklahoma resident for the entire year. Your total gross household income cannot exceed $20,000 unless one of the following applies:
- You can claim an exemption for your dependent, or
- or are 65 years of age or older by 12/31/2016, or
- You have a physical disability constituting a substantial handicap to employment.
If any one of the above three items pertains to you, your total gross household income limit is increased to $50,000.
NOTE A person convicted of a felony shall not be permitted to file a claim for sales tax relief for any year for which that person is an inmate in the custody of the Department of Corrections for any part of that year.
Persons who have received temporary assistance for needy families (TANF) for any month in the year of 2016 are not eligible for the sales tax refund.
Natural Disaster Tax Credit
This credit is for owners of residential real property whose primary residence was damaged or destroyed in a natural disaster for which a Presidential Major Disaster Declaration was issued, unless the natural disaster was a tornado occurring in calendar year 2012 or 2013 in which case a Presidential Major Disaster Declaration is not required. The amount of the credit is the difference between the ad valorem property tax paid on such property
in the tax year prior to the damage or destruction and the tax paid the first year after the property is rebuilt or repaired. The primary residence must be repaired or rebuilt and used as the primary residence not later than December 31, 2015, with respect to the calendar year 2012 or 2013 natural disaster and no later than 36
months after any natural disaster occurring on or after January 1, 2014. To claim this credit, Form 576 must be provided with your return.
Credit for Taxes Paid to Another State
A resident Oklahoma taxpayer who receives income for personal services performed in another state must report the full amount of such income on their Oklahoma return. If the other state taxes this same income as well, the resident may qualify for this credit. A part-year resident who receives income from personal services performed in another state while an Oklahoma resident must report the full amount of such income. If another state taxes this income, the part-year resident may qualify for this credit.
Note: TaxSlayer will automatically calculate this credit for your Resident Oklahoma return when you add the Nonresident return for the other state return to your account. For Part-Year Oklahoma returns that have income taxed in Oklahoma and another state, you will need to manually enter the required information asked of you within your Oklahoma Part-Year return.
Refundable Coal Credit, If claiming the refundable coal credit provide Form 577. Any
credits earned, but not used, based upon activity occurring during the tax year will be refunded at 85% of the face amount of the credits. For any credit calculated, the credit allowed is equal to 75% of the amount otherwise provided. A pass-through entity that does not file a claim for a direct refund will allocate the credit to one or more of its shareholders, partners or members.
Refundable Credit for Electricity Generated by Zero-Emission Facilities If claiming the credit provide Form 578. Any credits earned, but not used, based on electricity generated during the tax year will be refunded to the taxpayer at 85% of the face amount of the credits. A pass-through entity that does not file a claim for a direct refund will allocate the credit to one or more of its shareholders, partners or members.
For a list of all available credits see Form 511-CR
Volunteer Firefighter Credit
For taxpayers who qualify for the $200 or $400 Oklahoma Volunteer Firefighter Tax Credit, the completed and signed Council on Firefighter Training's (COFT) form must be included as supporting documentation. For further information, please contact the Council on Firefighter Training at 405-601-8862 or visit their website.