Miscellaneous: Other Adjustments
Enter in the box on Schedule 511-C, line 6, the appropriate number as listed below which shows the type of deduction. If you are entitled to more than one deduction listed below, enter the number “99”.
Enter the number “1” if the following applies:
Qualified Medical Savings Account/Health Savings Account:
Contributions made to, and interest earned from, an Oklahoma medical savings account established in this state, pursuant to 63 OS Sec. 2621 through 2623, shall be exempt from taxation. In order to be eligible for this deduction, contributions must be made to a medical savings account program approved by either the State Department of Health or the Insurance Commissioner. A statement of the contributions made to, and interest earned on, the account must be provided by the trustee of the plan, and enclosed as part of the filed return. This is not on your W-2. Enclose a copy of your federal return.
Contributions made to, and interest earned from, an Oklahoma Health Savings Account established in this state, pursuant to 36 OS Sec. 6060.14 through 6060.18, shall be exempt from taxation. A statement of the contributions made to, and interest earned on, the account must be provided by the trustee of the plan, and enclosed as part of the filed return. This is not on your W-2. Enclose a copy of your federal return.
Note: If you took a Health/Medical Savings Account Deduction to arrive at Federal Adjusted Gross Income, you cannot take a deduction on this line.
Enter the number “2” if the following applies:
Agricultural Commodity Processing Facility Exclusion:
Owners of agricultural commodity processing facilities may exclude 15% of their investment in a new or expanded agricultural commodity processing facility located within Oklahoma (68 OS Sec. 2358). Agricultural commodity processing facility means buildings, structures, fixtures and improvements used or operated primarily for the processing or production of agricultural commodities to marketable products. The investment is deemed made when the property is placed in service. Under no circumstances shall this exclusion lower your taxable income below zero. In the event the exclusion does exceed income, any unused portion may be carried over for a period not to exceed six years. A schedule must be enclosed showing the type of investment(s), the date placed in service, and the cost. If the total exclusion available is not used, a copy of the schedule must be enclosed in the carryover year and show the total exclusion available, the amount previously used and amount available in the carryover year. If the exclusion is through a partnership or S corporation, the schedule must also include the partnership’s or S corporation’s name, Federal ID number and your pro-rata share of the exclusion.
Enter the number “3” if the following applies:
Depreciation Adjustment for Swine or Poultry Producers:
Individuals who are swine or poultry producers may deduct depreciation on an accelerated basis for new construction or expansion costs. The same depreciation method elected for federal income tax purposes will be used, except the assets will be deemed to have a 7-year life. Any depreciation deduction allowable is the amount so computed minus the federal depreciation claimed. Enclose a copy of the federal depreciation schedule and
a computation of the accelerated Oklahoma depreciation.
Note: Once you have fully depreciated an asset on your Oklahoma return, you must add back any depreciation deducted on your federal return, see Schedule 511-B, line 7.
Enter the number “4” if the following applies:
Discharge of Indebtedness for Farmers: An individual, engaged in production of agriculture, may exclude income resulting from the discharge of indebtedness incurred to finance the production of agricultural products. Enclose Federal Schedule F and Form 1099-C or other substantiating documentation.
Enter the number “5” if the following applies:
Oklahoma Police Corps Program Scholarship/Stipend:
You may deduct any scholarship or stipend, received from participation in the Oklahoma Police Corps Program, that is included in your Federal Adjusted Gross Income. The Oklahoma Police Corps was established under 47 OS Sec. 2-140.1 through 2-140.11. Enclose documentation to support amount claimed
and a copy of your federal return.
Enter the number “6” if the following applies:
Deduction for Living Organ Donation: You may deduct up to $10,000 of unreimbursed expenses if you, or your dependent, donates one or more human organs while living. “Human organs” mean all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. The deduction is allowed only one time and may be claimed only for unreimbursed expenses that are incurred by you and related to the organ donation of you or your dependent. The deduction may only be claimed in the taxable year in which the transplant occurs. Enclose a detailed schedule of expenses claimed.
Enter the number “7” if the following applies:
Safety Pays OSHA Consultation Service Exemption: An employer that is eligible for and utilizes the Safety Pays OSHA Consultation Service provided by the Oklahoma Department of Labor shall receive a $1,000 exemption for the tax year the service is utilized. If this exemption is through a partnership or corporation, include the partnership’s or corporation’s name and Federal ID number and your pro-rata share of the exemption.
Enter the number “8” if the following applies:
Qualified Refinery Property: If a qualified Oklahoma refinery elected to expense the cost of qualified refinery property, enter any of such expense allocated to you. Enclose a copy of the written notice received from the refinery indicating the amount of the allocation. The notice should include the company’s name and Federal ID number.
Enter the number “9” if the following applies:
Cost of Complying with Sulfur Regulations: If a qualified refinery elected to allocate all or a portion of the cost of complying with sulfur regulations to its owners, enter the portion of such cost allocated to you. Enclose a copy of the written notice received from the refinery indicating the amount of the allocation. Such notice should include the company’s name and Federal ID number.
Enter the number “10” if the following applies:
Emergency Medical Personnel Death Benefit exclusion: The $5,000 death benefit, provided for in 63 OS Sec. 1-2505.1, paid to the designated beneficiary of an emergency medical technician or a registered emergency medical responder whose death is a result of their official duties performed in the line of duty is exempt. Deduct the $5,000 death benefit if such death benefit is included in your Federal Adjusted Gross Income.
Enter the number “11” if the following applies:
Competitive Livestock Show Award: You may deduct any payment of less than $600 received as an award for participation in a competitive livestock show event if such award is included in your Federal Adjusted Gross Income. You must be able to substantiate this deduction upon request.
Enter the number “12” if the following applies:
Discharge of indebtedness under IRC Section 108(i)(1): Income from discharge of indebtedness deferred under IRC Section 108(i)(1), which was added back to compute Oklahoma taxable income in tax year 2010, may be partially deducted. Deduct an amount equal to the portion of such deferred income included in your Federal Adjusted Gross Income for tax year 2014. If you are deducting this income as a member of a pass-through entity, include such entity’s name and ID number and your prorata share of the deferred income.