How to apply for Oklahoma sales tax relief credit or refund (Form 538-S)

Who it's for

Oklahoma gives a yearly sales tax credit or refund to lower-income residents. The amount is $40 for each qualified exemption you claim, such as yourself, your spouse, and your dependents. You must have lived in Oklahoma for the whole year. You qualify if your total gross household income is $20,000 or less. You can also qualify with household income up to $50,000 if you or your spouse are 65 or older, you have a physical disability that is a substantial handicap to employment, or you can claim a dependent. If you file an Oklahoma income tax return, claim it on Form 511 by April 15. If you do not have to file a return, mail Form 538-S to the Oklahoma Tax Commission by June 30.

What you'll need

• Form 538-S (attach it to Form 511 if you file an income tax return)
• If claiming a disability: proof, such as proof of Social Security disability benefits or a VA service-connected disability

Where to apply

What to say when you call

"Hello, I'm calling to ask about Oklahoma sales tax relief credit or refund (Form 538-S). I'd like to know whether I may qualify, what documents I need, and whether I can apply online, by mail, by phone, or in person. I understand I may need form 538-S (attach it to Form 511 if you file an income tax return), if claiming a disability: proof, such as proof of Social Security disability benefits or a VA service-connected disability — is anything else required? What is the best next step?"

Tip: have a pen ready, ask for the person's name, and write down any case or reference number they give you.

Step by step

1. Check if you qualify. You must have lived in Oklahoma for the whole year. Your household income must meet the program rules. Household income counts everyone living in the home and almost every kind of income, including Social Security.
2. Make sure none of the limits block your claim. Do not apply if anyone in the household got TANF in any month of the year. If you got aid to the aged, blind, or disabled, or Medicaid nursing home care, for the full year, your refund comes from Oklahoma Human Services instead.
3. Gather your documents. Get Form 538-S. If you file an Oklahoma income tax return, attach Form 538-S to Form 511. If you are claiming a disability, gather proof such as proof of Social Security disability benefits or a VA service-connected disability.
4. Choose how to apply. Apply online, or call 1-405-521-3160 if you need help.
5. File by the right deadline. If you file an Oklahoma income tax return, claim the credit on Form 511 by April 15. If you do not have to file a return, mail Form 538-S to the Oklahoma Tax Commission by June 30.
6. Review your claim before you submit it. A late claim cannot be fixed with an amended return.

What to expect: After you apply, the Oklahoma Tax Commission will review your claim and make the final decision. Processing times can vary, so ask the agency if you need an estimate. This benefit is annual, so you need to apply again each year if you still qualify.

Renewals

annual