Oklahoma adjustments to income include:
Military Pay Exclusion
Armed Services may exclude 100% of active Military pay including reservice and National Guard pay that is included in the federal adjusted gross income.
Qualifying Disability Deduction
Expenses to modify your auto, home or work place to compensate for a physical disability that may be a handicap to employment may be deducted.
Qualified Adoption Expense
Nonrecurring adoption expenses maybe deducted in the year they were incurred. Not to exceed $20,000. Expenses allowed include adoption fees, court costs, medical expenses and attorney fees.
Contributions to Oklahoma 529 College Savings Plan & OklahomaDream 529 Account(s)
Contributions made to Oklahoma 529 College Savings Plan or OklahomaDream 529 accounts. Contributions made to other plans are not deductible.
Deduction for Providing Foster Care
You may deduct expenses incurred providing foster care ($5,000) if you contract with a child-placing agency. If you are married filing separately, you may only claim $2,500 on your return for each individual return (as if you were married filing jointly).
Miscellaneous Other Oklahoma Adjustments
- Qualified Medical Savings Account/Health Savings Account
- Agricultural Commodity Processing Facility
- Depreciation Adjustment for Swine or Poultry
- Discharge of indebtedness for Farmers
- OK Police Corps Program Scholarship/Stipend
- Deduction for Living Organ Donation
- Safety Pays OSHA Consultation Service
- Qualified Refinery Property
- Cost of Complying with Sulfur Regulations
- EMT Death Benefit Exclusion
- Competitive Livestock Show Award
- Discharge of indebtedness under IRC Section 108(i)(1)
These adjustments can be made on your Oklahoma return by following the steps below:
- State Section
- Edit (pencil)
For additional information, see Instruction Booklet for Oklahoma Resident Return.