Military Pay Exclusion
Oklahoma residents who are members of any component of the Armed Services may exclude 100% of their active military pay, including Reserve & National Guard pay, to the extent such pay is included in the Federal Adjusted Gross Income. Retired military see instructions for Schedule 511-A, line 4.
Qualifying Disability Deduction
If you have a physical disability constituting a substantial handicap to employment, you may deduct the expense incurred to modify a motor vehicle, home, or work place necessary to compensate for the disability. Enclose a schedule detailing the expenses incurred and a description of the physical disability with documentation regarding the Social Security Administration recognition and/or allowance of this expense.
Qualified Adoption Expense
An Oklahoma resident may deduct “nonrecurring adoption expenses” not to exceed $20,000 per calendar year. Expenses are to be deducted in the year incurred. “Nonrecurring adoption expenses” means adoption fees, court costs, medical expenses, attorney fees and expenses which are directly related to the legal process of adoption of a child. Enclose a schedule describing the expenses claimed.
Contributions to Oklahoma 529 College Savings Plan and OklahomaDream 529 account(s)
Each individual may deduct contributions made to accounts established pursuant to the Oklahoma College Savings Plan Act. The maximum annual deduction is the amount of contributions to all Oklahoma 529 College Savings Plan or OklahomaDream 529 accounts plus any contributions to such accounts for prior tax years after December 31, 2004, which were not deducted. If a rollover* or non-qualified withdrawal is taken within the same tax
year as a contribution is made, the deduction for such contribution must be reduced by the amount of the rollover or non-qualified withdrawal. In no event can this deduction exceed $10,000 ($20,000 on a joint return) per tax year. Any amount of a contribution that is not deducted in the year for which the contribution is made may be carried forward as a deduction from income for the succeeding five years. If a rollover* or non-qualified withdrawal
is taken during the carryover period, the tax deduction otherwise available must be reduced by the amount of the rollover or nonqualified withdrawal. Deductions may be taken for contributions and rollovers made during a taxable year and up to April 15 of the succeeding year, or the due date of a taxpayer’s state income tax return, excluding extensions, whichever is later. A deduction for the same contributions may not be taken for two different tax
years. Enclose proof of your contribution including the name of the beneficiary and the account number.
*For purposes of reducing the deduction, “rollover” means the transfer of funds from the Oklahoma 529 College Savings Plan or OklahomaDream 529 accounts to any other plan under IRC Section 529.
Contributions must be made to Oklahoma 529 College Savings Plan or OklahomaDream 529 account(s). Contributions made to another state’s college savings plans, the Coverdell Education Savings Account or transfers from one Oklahoma 529 College Savings Plan or OklahomaDream 529 account to another, may not be deducted.
Deduction for Providing Foster Care
If you contract with a child-placing agency, as defined in 10 OS Sec. 402, you may deduct $5,000 for expenses incurred providing foster care. Married persons filing separately in a year in which they could have filed a joint return may each claim only $2,500.
For a list of other miscellaneous adjustments please Oklahoma 511 Instructions.