How to apply for Oklahoma income tax exclusions for Social Security and retirement income

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.

What 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

Step by step

1. Gather a copy of your federal return and Form 1099-R for each retirement benefit you want to exclude.
2. Check which income may qualify. Social Security included in your federal adjusted gross income is subtracted on your Oklahoma return. You may also exclude up to $10,000 per person for eligible retirement income in your own name, and some types of retirement income may be fully excluded.
3. Apply online when you file your Oklahoma resident income tax return, Form 511.
4. Complete Schedule 511-A to claim the Social Security subtraction and any retirement income exclusions.
5. Review your return carefully. Early withdrawals before retirement may be treated differently, and people age 65 or older with lower income may also qualify for an extra $1,000 exemption based on filing status and federal income limits.
6. Submit your Oklahoma return online and keep copies of your forms for your records.

What to expect: After you submit your return, the Oklahoma Tax Commission reviews the exclusions claimed on Schedule 511-A and makes the final decision. These are income tax exclusions, so they help only if you owe Oklahoma income tax. Claim them again each year when you file your Oklahoma return.

Renewals

annual (claimed on each year's income tax return)