Oklahoma Military Pay Exclusion
Oklahoma offers specific tax exclusions for military personnel and their spouses, particularly in cases involving combat zone deaths and income earned by qualifying nonresident spouses.
Exemption for Spouses of Military Members Killed in Combat
- Income earned by an individual whose military spouse was killed in a combat zone is exempt from Oklahoma income tax.
- This exemption applies during the taxable year in which the individual is declared deceased by the Armed Forces.
- Refer to 68 OS Sec. 2358.1A for statutory authority.
Nonresident Spouse of U.S. Military Member
- Salaries, wages, and commissions earned by a qualifying nonresident spouse of a U.S. military servicemember may be protected under the Military Spouses Residency Relief Act.
- This protection may exempt such income from Oklahoma state income tax.
- Note: Civilian income earned in Oklahoma by the servicemember is not protected and remains subject to Oklahoma tax.
Filing Requirements for Nonresidents
- Nonresidents with gross income from Oklahoma sources of $1,000 or more must file Form 511-NR.
- Individuals with less than $1,000 in Oklahoma-source income are not required to file.
- Use Form 511-NR for nonresident returns; available for fast, free, 24/7 online filing via OKTAP at oktap.tax.ok.gov.
Source:
Form 511-NR
Disclaimer: Always verify with the Federal or State Department of Revenue Forms and Instructions for the most current and accurate tax guidance.