Oklahoma state income tax
General information: All Oklahoma residents, who are required to file a Federal income tax return, are required to file an :Oklahoma income tax return. Nonresidents are required to file an Oklahoma income tax return when they receive gross income of at least $1,000 if :Oklahoma source income.
The tax rates are the same for residents, part-year residents and nonresidents. The tax is computed under two methods and the taxpayer may use the lower of the two methods as the final tax .
Resident: An Oklahoma resident, as per the purpose of determination of tax, is a person domiciled (domicile is the place established as a person's true, fixed and permanent home .) in this state.
Military residency: if a taxpayer was a resident of Oklahoma at the time of entrance into military service, he/she will remain so even if he is assigned a duty outside Oklahoma. He/she should file an Oklahoma return as a resident of Oklahoma until such time as a permanent residence in another state is established .
Nonresidents: A nonresident is required to file an Oklahoma Income Tax return Form 511NR if he/she receives $1,000 or more from Oklahoma sources. A return is required to establish a loss year, even if the gross receipts are less than $1,000 .
Part-year residents: individuals moving into or out of Oklahoma during the year must file an Oklahoma Income Tax Return Form 511NR .
Husbands and wives: The Oklahoma resident, filing a joint Federal return with a nonresident civilian spouse, may file their :Oklahoma return as "married, filing separately ". They may also file as if both the resident and the nonresident spouses were :Oklahoma residents, on OTC Form 511, using the "married, filing jointly"filing status, and reporting all the income.
In other instances, in events like a part-year resident files a joint return with a non-resident military spouse, they must use the same filing status as used on the Federal Income Tax return.
Deceased taxpayer: If a taxpayer died during the tax year, the executor, administrator or the surviving spouse must file an Oklahoma Income Tax Return for the decedent .
Businesses: Every partnership, corporation, resident estate and trust, and nonresident estate and trust with Oklahoma source income is required to file an :Oklahoma income tax return.
An affiliated group of corporations can elect to file a consolidated Oklahoma return. The group's consolidated income, loss or deduction shall be determined to a component member by component member basis . If this lection is made, such election shall be binding for all future tax years unless the Oklahoma Tax Commission releases the group from such election .
When to file the returns:
The income tax returns are to be filed with and received by the Oklahoma Tax Commission at 2501 Lincoln Blvd, Oklahoma City, OK, 73194-0009, on or before the statutory filing date.
Extension of time for filing: The due date of an Oklahoma income tax return gets extended automatically, if a valid extension of time to file a Federal income tax return is acquired and there is no Oklahoma liability owed. If the due date for filing the Federal return is not extended or if an :Oklahoma liability is owed, an extension of time to file the Oklahoma Return may be granted only by OTC Form 504 . 90% of the tax liability must be paid by the original due date for the return to avoid penalty charges for late payment .
A corporate extension may exceed the approved Federal extension by one month, upon a written request.
Amended returns: If a resident taxpayer is required to file an Individual Amended Oklahoma Income Tax Return, OTC Form 511X must be submitted.
Part-year residents and nonresidents must use OTC Form 511NR and indicate that the return is an amended return by marking the appropriate box. When an individual taxpayer wishes or required to file amended returns for more than one year, an amended return must be completed for each year an amendment is made . No amended return may encompass more than one single year .
Mode of filing: The Oklahoma Income Tax returns could be filed through paper or electronically . Those taxpayers who wish to designate that their individual income tax return is not to be electronically filed will have a check off box for use .
Penalties:
Failure to file an Oklahoma Income Tax Return even after knowing about the requirement to do so will be taken as an evidence of intent to defraud the state and evade the payment of taxes. In cases where the commission deems it appropriate, the violators of the state tax laws may be prosecuted as provided by the law.
50% penalty for fraud imposed by the statute is calculated on the amount of tax determined to be due, and is in addition to any other penalties which may be imposed by law. The 50% penalty may be imposed in the following cases :
In addition to the above, in cases where a return has not been filed, and an assessment is based on information furnished to the Commission by the IRS (internal revenue service) indicating the imposition of a penalty for negligence, fraud, failure to file, or substantial understatement of income, the taxpayerÂ’s failure to file an Oklahoma Income Tax Return will be considered as evidence of fraud with the intent to evade tax .
Other Articles
