According to the Oklahoma Instructions, if you are a resident of Oklahoma and you meet the federal filing requirements, you are required to file an Oklahoma return.
What if I am a resident?
If you are a resident of Oklahoma, your active duty military pay is not taxable to Oklahoma.
To deduct the military pay on the return, follow these steps in the program:
- State Section
- Oklahoma Resident Return
- Adjustments
- Military Pay Exclusion-enter amount
- Continue
What if I am a nonresident?
If you are a nonresident of Oklahoma, your active duty military pay while stationed in Oklahoma is not taxable.
To deduct the military pay on the return, follow these steps in the program:
- State Section
- Oklahoma Nonresident Return
- Adjustments
- Military Pay Exclusion-enter amount
- Continue
If one spouse is a resident and the other is not,
you are able to file as either married filing joint or married filing separate. If you choose to file as married filing joint, a resident return is filed and all income is taxed as if it was Oklahoma income. If you choose to file married filing separate, each spouse will file a separate state return with their correct residency status (resident/nonresident). You may need to allocate the income using this filing status.
Military Retirement:
You may exclude 75% of your retirement benefits or $10,000, whichever is greater. Amount cannot exceed the amount included in the Federal Adjusted Gross Income.
To enter the exclusion, follow these steps in the program:
- State Section
- Oklahoma Return
- Subtractions from Income
- Enter the Military Retirement received, Enter the full retirement amount
- Continue