What are the Oklahoma Miscellaneous Other Subtractions?

Miscellaneous Other Subtractions appear on line 17 of Schedule 511-A. They are as follows: 

Royalty Income Earned by an Inventor:

Royalty income earned by an inventor from a product developed and manufactured in this state shall be exempt from income tax for a period of seven years from January 1 of the first year in which such royalty is received, as long as the manufacturer remains in this state. To support your deduction, You must provide the following:

1. Copy of the patent
2. Copy of the royalty agreement with the manufacturer
3. Copy of registration form from the OCAST.

Note: These documents cannot be added to an e-filed return in the program. You will need to print and mail your return to include the above documentation. 

Select Royalty Earned by an Investor from drop-down list (number 1 entry will be generated).  

Manufacturer's Exclusion:

Select Manufacturer's exclusion from the drop-down list (number 2 entry will be generated). This exclusion is generally referring to this manufacturer's exclusion for qualifying depreciable property used in producing a patented or patent-pending Oklahoma-developed product. It is not a general manufacturing deduction available to all manufacturers. Refer to (74 OS Sec. 5064.7 (A)(2)).

Small Business Incubator Exclusion:

Select Small Business Incubator Exclusion from the drop-down list (number 3 entry will be generated). Exemption for income earned by the tenant. Refer to (74 OS Sec. 5078).

Military Member Killed in Combat Zone:

Select Death of a military member killed from the drop-down list (number 4 entry will be generated). Payments received as a result of a military member being killed in a combat zone. Any payment made by the United States Department 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.

Spouse of Military Member Killed in Combat Zone:

Select Spouse of military member killed from drop-down list (number 5 entry will be generated). 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 United States 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.

Allowable subtractions not stated above

Allowable deductions not included in the list above. Select Allowable Subtractions not included above from the drop-down list (number 99 entry will be generated) Provide a detailed explanation and verifying documents.  Specify type of subtraction and Oklahoma Statute authorizing the subtraction. 

*You will not be able to upload documents when e-filing, so the return will need to be printed and mailed if supporting documentation is needed.  

For more information, please review the Oklahoma Instructions.

Where do I enter?

• State Section
• Three dots to edit Oklahoma state return
• Subtractions from Income