A1 State and Municipal Bond Interest
Federal Amount column
If you received income on bonds issued by any state or political subdivision thereof, exempt from federal taxation but not exempt from taxation by the laws of the State of Oklahoma, the total of such income shall be added to Federal Adjusted Gross Income.
1) Income from all bonds, notes or other obligations issued by the State of Oklahoma, the Oklahoma Capital Improvement Authority, the Oklahoma Municipal Power Authority, the Oklahoma Student Loan Authority, and the Oklahoma Transportation
Authority (formerly Turnpike Authority) is exempt from Oklahoma income tax. The profit from the sale of such bond, note or other obligation shall be free from Oklahoma taxation.
2) Income from local Oklahoma governmental obligations issued after July 1, 2001, other than those provided for in line 1, is exempt from Oklahoma income tax. The exceptions are those obligations issued for the purpose of providing financing for projects for nonprofit corporations. Local governmental obligations shall include bonds or notes issued by, on behalf of, or for the benefit of Oklahoma educational institutions, cities, towns, or counties or by public trusts of which any
of the foregoing is a beneficiary.
3) Income from Oklahoma State and Municipal Bonds issued prior to July 2, 2001, other than those provided for in line 1, is exempt from Oklahoma income tax only if so provided by the statute authorizing their issuance.
4) Income on bonds issued by another state or political subdivision thereof (non-Oklahoma), exempt from federal taxation, is taxable for Oklahoma income tax. Enclose a schedule of all municipal interest received by source and amount. If the income is from a mutual fund which invests in state and local government obligations, enclose documentation from the mutual fund to substantiate the percentage of income derived from obligations exempt from Oklahoma tax.
Note: If the interest is exempt, the capital gain/(loss) from the sale of the bond may also be exempt. The gain/(loss)
from sale of a state or municipal bond, other than those provided for in line 1, is exempt only if so provided by
the statute authorizing its issuance. Enter exempt gains on Schedule 511NR-B, line 11 and exempt losses on
Schedule 511NR-A, line 6.
Oklahoma Amount column
Enter that part of the “Federal Amount” column received while a resident of Oklahoma.
A2 Lump-Sum Distributions
Federal Amount column
Lump-sum distributions not included in the Federal Adjusted Gross Income shall be added to the Federal AGI. Rollovers and IRA conversions are taxed in the same year as on the federal return. Enclose a copy of Form 1099, and complete copy of federal return.
Note: The lump-sum distribution may qualify for the Schedule 511NR-B, line 6 “Other Retirement Income exclusion.” It must be received from a qualified plan and satisfy the requirements of the Internal Revenue Code as specified in the instructions for the exclusion.
Oklahoma Amount column
Enter that part of the “Federal Amount” column that represents the lump-sum distribution received while a resident of Oklahoma.
A3 Federal Net Operating Loss
Enter carryover(s) included on Federal Form 1040 and on Schedule 511NR-1, line 15. See the “Net Operating Loss” section on pages 5 and 6. Recapture of Depletion and Add Back of Excess Federal Depletion Federal Amount column Upon the expiration of the lease, depletion claimed must be restored to income in the case of non-producing properties.
A4 Recapture of Depletion and Add Back of Excess Federal Depletion
Federal Amount column
Upon the expiration of the lease, depletion claimed must be restored to income in the case of non-producing properties.Enter depletion claimed on a lease bonus if no income was received from the property due to its lease expiration. A complete schedule by property must be furnished. If the 22% Oklahoma option for computing depletion was used in a previous year and the 65% federal depletion limitation applied in that year, you must add back any unused
federal depletion being carried over from such year and used in the current year’s federal return. Applicable recapture
is determined on a well-by-well basis.
For the Oklahoma option for computing depletion see the instructions for Schedule 511NR-B, line 8. A complete
schedule by property must be furnished
Oklahoma Amount column Enter that part of the “Federal Amount” column that represents
the recapture of depletion on Oklahoma properties.
Enter that part of the “Federal Amount” column that represents the add back of excess federal depletion on Oklahoma
properties.
A5 Recapture of Contributions to Oklahoma 529 College Savings Plan and OklahomaDream 529 Account(s)
Federal Amount column -
- If an individual elects to take a rollover on a contribution within one year of the date of the contribution, for which a deduction was taken on the previous year’s return, the amount of such rollover is included in income. As used in this paragraph, “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.
- An individual who makes a non-qualified withdrawal of contributions for which a deduction was taken in tax year 2005 or later, such non-qualified withdrawal and any earnings thereon are included in income. If any of the earnings have already been included in your Federal Adjusted Gross Income, do not include those earnings again on this line.
Oklahoma Amount column -
Enter that part of the “Federal Amount” column that represents the rollover taken or non-qualified withdrawal received while a resident of Oklahoma.