How to apply for Oklahoma income tax exclusions for Social Security and retirement income
Oklahoma Tax Commission (OTC)
Who it's for
Oklahoma does not tax Social Security benefits: any Social Security included in your federal adjusted gross income is subtracted on your Oklahoma return. Each person may also exclude up to $10,000 of retirement benefits from Oklahoma government retirement systems, federal civil service retirement, or private pensions, IRAs, 401(k), 403(b), and 457 plans, but no more than the amount included in federal income. Military retirement, federal Civil Service Retirement System (CSRS) benefits paid in place of Social Security, and qualified U.S. Railroad Retirement Board benefits can be fully excluded. These exclusions are claimed on Schedule 511-A of the Oklahoma resident income tax return (Form 511). People 65 or older with lower income may also get an extra $1,000 exemption.
These are income tax exclusions, so they help only if you owe Oklahoma income tax. The $10,000 limit is per person, and the retirement income must be in your own name. Early withdrawals before retirement may be treated differently. The extra $1,000 exemption for age 65 or older has federal income limits that depend on filing status. The Oklahoma Tax Commission makes the final decision.
People who qualify for one senior program often qualify for others. See everything you may qualify for — free, no SSN, about five minutes.
Find my benefitsWhat you'll need
- Form 1099-R for each retirement benefit you exclude
- A copy of your federal return (for the Social Security subtraction)
Where to apply
Apply online: official application
Renewals
annual (claimed on each year's income tax return)
Not sure if you qualify? Run a free check first.
Find my benefitsNot legal or financial advice. The agency makes the final eligibility decision.