Oklahoma allows for a subtraction on your state return for retirement benefits up to $10,000 but not more than what was included in your federal adjusted gross income. These retirement benefits must have been received from the following and satisfy the requirements of the IRC:
- Employee pension benefit
- Plan under IRC Section 401, an eligible deferred compensation
- Plan under IRC Section 457, an individual retirement account,
- Annuity or trust or simplified employee pension under IRC Section 408, an employee annuity under IRC Section 403 (a) or (b),
- United States Retirement Bonds under IRC Section 86, or lump-sum distributions from a retirement plan under IRC Section 402
Where do I enter it?
To make this manual entry within the program, go to:
- State Section
- Subtractions from Income
- Enter your retirement income in the appropriate box and enter the Civil service retirement claim number if applicable
What else do I need to know?
If you received retirement from the Federal Civil Service Retirement System (CSRS), you may exclude 100% of the benefits received to the extent that this income is included in your federal adjusted gross income.
NOTE: Benefits from the Federal Employees Retirement System or (FERS) do not qualify for this exclusion.
For more information on the Oklahoma retirement exclusion, please click here.
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