How do I deduct the military spouse’s income on the Oklahoma return?

According to the Oklahoma Tax Commission, "A nonresident spouse of a nonresident servicemember may be exempt from Oklahoma income tax on income from services performed in Oklahoma if all of the following facts are true:

• the servicemember is present in Oklahoma in compliance with military orders;
• the spouse is in Oklahoma to be with the servicemember; and
• the spouse maintains the same domicile as the servicemember."

How can I claim tax-exempt from Oklahoma withholdings? 

Complete the Tax Exemption Certificate for a military spouse, Form OW-9-MSE to claim exempt status under the Military Spouse’s Residency Relief Act and give to your employer.  The employer may also require a copy of the current Leave and Earning Statement (LES) and current Military ID. This form must be completed annually.

How do I get a refund of my Oklahoma taxes withheld? 

To claim a refund of taxes withheld from your Oklahoma income, follow these steps in the program.

1. State Section
2. Nonresident Oklahoma Return
3. Income Subject to Tax
4. Amount of wages that are under the Federal Military Spouses Residency Relief Act - Please refer to instructions for further explanation as to whom is eligible
5. Enter your wages as shown in Box 16 of your W-2
6. Continue  

Military Spouse income may be taxable on your state return where you file as a resident.