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CCH Axcess Tax

Oklahoma General Information

The following Oklahoma forms and schedules are prepared:

Form 504-I Application for Extension
Form 511EF Declaration for Electronic Filing
Form 511-V Income Tax Payment Voucher
Form 511 Resident Individual Income Tax Return
Sch ABC Additions, Subtractions, and Adjustments
Sch DE Oklahoma Itemized Deducions, Deductions and Exemptions
Sch FG Child Care/Child Tax Credit, Earned Income Credit
Sch HI Donations and Amended Return Information
Form 511NOL Oklahoma Net Operating Loss, Full Year Residents
Form 511NR Part-year and Nonresident Income Tax
NR-1, Sch A Income Allocation and Additions
NR Sch BC Subtractions and Adjustments
NR Sch DE Itemized Deductions & Child Care Credit/Child Tax Credit
NR Sch FGH Earned Income Credit, Donations and Amended Return Information
Form 511-NR-NOL Oklahoma Net Operating Loss(es), Nonresident/Part-Year Residents
Form 511CR Other Credits
Form 538H Credit or Refund of Property Taxes
Form 538S Credit or Refund of Sales Tax
Form 561 Oklahoma Capital Gain Deduction
Form 561NR Oklahoma Capital Gain Deduction, Nonresident/Part-Year Residents
Form 573 Farm Income Averaging
Form 507 Claim Refund for Deceased Taxpayer
Form 511TX Credit for Taxes Paid to Other States
Form BT-129 Power of Attorney
OW-8-ES Estimated Tax Declaration
OW-8-P Underpayment of Estimated Tax Worksheet
OW-8-P-SUP-I Annualized Income Installment Method
506 Investment/New Jobs Credit

Federal Forms for Oklahoma Return

The appropriate federal forms and schedules are provided with the Oklahoma income tax return.

FS and State Code

The "FS" and "State" fields provide the ability to control which entries carry to the federal or state tax return(s).

FS State Action
blank blank Federal and home state
F blank Federal only
S blank Home state only
blank XX Federal & indicated state**
F XX Federal & indicated state
S XX Indicated state only

** On multi-state returns, this entry scheme carries the item to the federal return, the full-year resident state return, and the indicated nonresident state, but it applies to items of income only. It does not apply to state withholding, or other tax payments, footnotes, credits, or additional taxes since these items relate to only the indicated state.

The first column is the "FS" code. The word "blank" in this column indicates no entry is made in the "FS" code field. The only other possible entries are "F" or "S".

The second column is the "State" code. The word "blank" indicates no entry is made. "XX" represents an entry of a state code.

The third column specifies which returns are affected by that particular input scheme.

TSJ Codes

The use of TSJ codes are not required for the Oklahoma return.

Filing Status Optimization

Two separate tax return files can be produced from one original set of worksheets or entries. The basis for segregating the return information is the existing TS or TSJ code fields, the FSO fields, and any other taxpayer/spouse designations on the federal, state or city worksheets.

Processing options related to the Filing Status Optimization are available on federal General worksheet, Return Options section. This feature can be requested using the menu selection "File"/"Split Joint Return" on joint returns only. Once the option is selected, two additional separate returns are created that must then be accessed individually for further processing such as additional entries, corrections, review, and printing.

The Filing Status Comparison, which can be requested on federal General worksheet, Return Options section, can be used in advance to approximate the tax effect of filing separate returns and accordingly can be used as a basis for deciding which joint returns to split.

Depreciation

Oklahoma allows federal depreciation. Therefore, the use of state depreciation entries are not required. If state depreciation entries are made, the Oklahoma return may be incorrect. Oklahoma conforms to the federal bonus depreciation. No adjustments are made for depreciation differences due to bonus depreciation.

Depletion

The Oklahoma depletion adjustment is calculated from entries on the federal worksheets. The Oklahoma depletion adjustment is included on a supporting statement as an "Other Subtraction" or "Other Addition".

Percentage depletion is calculated for oil and gas entries using the 22 percent rate. For 2020 this amount is limited to 50% of the net income from the property for major oil companies. The federal quantity and 65 percent limitations are not applied, and the prior year excess percentage depletion carryover is not deducted on the Oklahoma return.

When "A" is entered in the "State Depletion Options" box on federal General worksheet, Depreciation and Depletion Options and Overrides it is assumed that federal depletion is the same as Oklahoma depletion, and no Oklahoma depletion adjustment is calculated.

When "F" is entered in the "State Depletion Options" field on federal General worksheet, Depreciation and Depletion Options and Overrides, depletion properties with an FS code of "F" are NOT used to compare federal and Oklahoma depletion amounts to determine the depletion adjustment.

Credit for Taxes Paid to Other States

The credit for taxes paid to other states by a resident of Oklahoma is calculated when the other state returns are prepared. For part-year resident returns, or for states not submitted for processing with this return, or to override this calculation, entries should be made on Oklahoma Credits worksheet, Credit for Taxes Paid section.

If a state code entered in the "State Code" field matches that of a state prepared within the return, the Oklahoma Credits worksheet, Credit for Taxes Paid section entries override the calculation for that state.

Enter "XX" in the "State Code" field when the entries for taxes paid to other states are combined as one entry. This overrides the calculation of credit for taxes paid for all states prepared. The term "Various" prints instead of the state name on Oklahoma Form 511TX.

Default: The default assumption is that all adjusted gross income from the other state, less any income calculated in out of state income, plus any loss calculated in out of state loss, is from personal services and qualifies for the credit calculation. If this assumption is not correct on any particular return, use Oklahoma Credits worksheet, Credit for Taxes Paid section to override the calculation of the credit for taxes paid to that state.

ID Theft Information

For e-file returns:

To assist Taxpayers and Tax Professionals filing returns, Oklahoma is providing a URL regarding expectations for the DL/ID Card. Industry partners will use this URL to communicate and help set the appropriate expectations with external stakeholders. Providing this information will:

https://www.ok.gov/tax/IDtheft.html

 

LOI Message

Documents and Materials

OTC e-file and paper form documentation will be provided at the following locations:

• FTA State Exchange System (SES):

(Forms, schemas, business rules, e-file handbooks, developer guide, test packages and guidelines for substitute forms and 2-D barcode information )

• OTC Website - Developers Draft page

(Forms and guidelines for substitute forms and 2-D barcode information)

Refund Expectations

OTC is providing a statement about refund processing. Industry partners must use this statement in all products. The messages must be shown to end-users within the software in a way to maximize the likelihood the message is read.

Statement: If the return was e-filed, taxpayers can generally begin checking on their refund about four business days after the return was accepted by the Oklahoma Tax Commission. If the return was paper filed, taxpayers should wait about three weeks to begin checking on their refund. Once processed, allow five working days for the deposit to be made to a bank account. For debit card refunds, allow five to seven working days for delivery. Visit the OTC webiste at www.tax.ok.gov and click on the “Check on a Refund” link, which will lead to our Taxpayer Access Point (OkTAP).

Taxes Due Expectations

OTC is providing a statement about taxes due, such as due dates and payment methods. Industry partners must use this statement and/or URL or other method prescribed by the jurisdiction in all products. The messages must be shown to end-users within the software in a way to maximize the likelihood the message is read.

Statement: When you electronically file and pay your return, your due date is extended until April 20. If you do not electronically pay, your payment is due April 15. Electronic payments may be made as part of your e-filed return or you may pay through the OTC website. Visit the “Online Services” section at www.tax.ok.gov to pay by e-check or credit card. If you are e-filing your return but making a non-electronic payment mail your payment to OTC using the payment voucher Form 511-V.

Driver’s License/ID Card Expectations

OTC is providing the following expectations and information:

For e-file returns:

• OTC wants to receive the DL/ID Card information with the tax return.

OTC is providing a URL and statement for the DL/ID Card. All Do It Yourself (DIY) and Tax Professional software packages must include this information in your software. The messages are expected to be shown to end-users within the software in a way to maximize the likelihood the message is read.

URL: https://www.ok.gov/tax/IDtheft.html

Statement: When e-filing, you may be asked to provide information from your driver license.

In an effort to combat stolen-identity tax fraud, the state of Oklahoma is requesting additional information from taxpayers. This added voluntary measure is intended to ensure your tax refund goes to you.

When e-filing, provide your driver license or state-issued card information when prompted.

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