SIMPLE. FAST. ACCURATE
Support Center > Knowledge base> Article: What is the Oklahoma or Federal Government Retirement Exclusion?

What is the Oklahoma or Federal Government Retirement Exclusion?

Article ID: 60169 Email Print
Question
What is the Oklahoma or Federal Government Retirement Exclusion?

Answer

-Social Security benefits that are included in the Federal Adjusted Gross Income shall be subtracted. Provide a copy of your federal return.

-Federal Civil Service Retirement in Lieu of Social Security

Each individual may exclude 100% of their retirement benefits received from the Federal Civil Service Retirement System (CSRS), including survivor benefits, paid in lieu of Social Security to the extent such benefits are included in the Federal Adjusted Gross Income. Enter your Retirement Claim Number from your Form CSA 1099-R or CSF 1099-R in the box on Schedule 511-A, line 3. Provide a copy of Form CSA 1099-R or CSF 1099-R with your return. To be eligible, such 1099-R must be in your name.

Note: Retirement benefits paid under the Federal Employees Retirement System (FERS) do not qualify for this exclusion.  However, for retirement benefits containing both a FERS and a CSRS component, the CSRS component will qualify for the exclusion. Provide substantiation for the CSRS component, such as a copy of your Notice of Annuity Adjustment.

-Military Retirement

Each individual may exclude the greater of 75% of their retirement benefits or $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. The retirement benefits must be from any component of the Armed Forces of the United States.

-Oklahoma Government or Federal Civil Service Retirement

Each individual may exclude their retirement benefits up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. (To be eligible, you must have retirement income in your name.) The retirement benefits must be received from the following: the civil service of the United States*, the Oklahoma Public Employees Retirement System of Oklahoma, the Oklahoma Teacher’s Retirement System, the Oklahoma Law Enforcement Retirement System, the Oklahoma Firefighters Pension and Retirement System, the Oklahoma Police Pension and Retirement System, the Employee retirement systems created by counties pursuant to 19 OS Sec. 951, the Uniform Retirement System for Justices and Judges, the Oklahoma Wildlife Conservation Department Retirement Fund, the Oklahoma Employment Security Commission Retirement Plan, or the Employee retirement systems created by municipalities pursuant to 11 OS Sec. 48-101. Provide a copy of Form 1099-R.

*Do not include on this line the CSRS retirement benefits already excluded on Schedule 511-A, line 3.

Note: An early distribution from a retirement fund due to termination of employment prior to your retirement or disability does not qualify for the $10,000 retirement income exclusion. Generally, there is a “1” in box 7 of your Form 1099-R for this type of distribution.  This distribution may qualify for the “Other Retirement Income” exclusion on Schedule 511-A, line 6.

-Other Retirement Income

Each individual may exclude their retirement benefits, up to $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. For any individual who claims the exclusions for government retirees on Schedule 511-A, line 5, the amount of the exclusion on this line cannot exceed $10,000 minus the amounts already claimed on Schedule 511-A, line 5 (if less than zero, enter zero).

The retirement benefits must be received from the following and satisfy the requirements of the IRC: an 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 lumpsum distributions from a retirement plan under IRC Section 402

(e). Provide a copy of Form 1099-R or other documentation.

-U.S. Railroad Retirement Board Benefits

 

All qualified U.S. Railroad Retirement Board benefits that are included in the Federal Adjusted Gross Income may be excluded.

 

 


related articles

Article Details
Views: 1610 Created on: Jun 15, 2013
Date updated: Dec 18, 2018
Posted in: States, Oklahoma

Poor Outstanding