For the 2025 Oklahoma state income tax filing season, taxpayers must use Form 511 (Resident Individual Income Tax Return) or Form 511-NR (Nonresident Individual Income Tax Return) to report their income. The filing deadline is generally April 15, 2026, and returns must be postmarked by that date. If a balance is due, taxpayers are encouraged to use Form 511-V (Individual Income Tax Payment Voucher) to ensure accurate and efficient processing. Payments should be made by check or money order payable to the Oklahoma Tax Commission, with the taxpayer’s name and address on the payment. Do not staple or attach the payment to the voucher—submit both items loose in the same envelope.
Farm Income Averaging
- Taxpayers engaged in farming may elect to average eligible farm income over the previous three base years (2022, 2023, and 2024) to potentially reduce their 2025 Oklahoma income tax liability. This election is made using Form 573, Farm Income Averaging and the applicable worksheet.
- The elected farm income cannot exceed the taxpayer’s eligible 2025 taxable farm income. The tax is calculated by allocating the elected farm income over the four-year period and applying the applicable tax rates for each year as required by the farm income averaging rules.
- The resulting Oklahoma tax adjustment is reported on Form 511 according to the instructions for farm income averaging.
State Subtractions
On Schedule 511-A, taxpayers may subtract certain federal items from their Oklahoma taxable income, including:
- Interest on U.S. government obligations
- Social Security benefits taxed on Federal Form 1040 or 1040-SR
- Federal civil service retirement in lieu of Social Security
Investment/New Jobs Credit
- The Investment/New Jobs Credit is an Oklahoma income tax credit available to qualifying businesses that either:
- Make an investment in Oklahoma qualified depreciable property placed in service during the tax year; or
- Create qualifying new jobs as defined under Oklahoma law.
- Taxpayers claim the credit using Form 506, Investment/New Jobs Credit, and include the completed form with the applicable Oklahoma income tax return. The credit may be claimed on returns including Form 511, Form 511-NR, Form 512, Form 512-S, Form 513, Form 513-NR, or Form 514, as applicable.
- The investment credit requires an investment of at least $50,000 in Oklahoma qualified depreciable property placed in service during the applicable tax year. The taxpayer must meet the applicable eligibility requirements for either the investment credit or the new jobs credit. The credit is based on the qualifying investment or qualifying employment increase, as applicable.
- A taxpayer may claim either the Investment Credit or the New Jobs Credit, but not both for the same qualifying activity.
- Unused credits may be carried forward according to Oklahoma law. Form 506 provides that unused credits may be carried over, in order, through the four years following the qualification period and then through the 15 years following the initial five-year period, subject to the applicable credit rules
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Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. For complex tax situations, consult a CPA or tax attorney.