Fillable Form 511tx - Credit For Tax Paid To Another State

2012 Form 511TX - Page 2

Credit for Tax Paid to Another State

68 Oklahoma Statutes (OS) Sec. 2357(B)(1) and Rule 710:50-15-72

Instructions

This schedule, a complete copy of the other state’s tax return and copies of all W-2 forms must be enclosed with the Okla-

homa return. If the taxing state (e.g. Mississippi) does not allow a return to be filed for gambling winnings, enclose a copy

of Form W-2G.

Line 1

Include only the amount of wages, salaries, commissions and other pay for personal services which is being taxed by

Oklahoma and also the other state. Gambling winnings are considered income from personal services for purposes of

this credit. Part-Year Residents include only the income for personal services which is included in the “Oklahoma Amount”

column of Form 511NR and which was also taxed by another state.

Example 1. John is an Oklahoma resident, filing Form 511. He worked and owned rental property in an-

other state. The other state’s return shows wages of $20,000 and rental income of $10,000.

Line 1 would be $20,000, the amount of income from personal services included in his Okla-

homa adjusted gross income and taxed by another state.

Example 2. Beth is a part-year resident of Oklahoma, filing Form 511NR. She lived in Oklahoma until the

end of September and on October 1 she moved to another state. She worked all year in the

other state. Beth earned a salary of $30,000 for the year, $22,500 while she lived in Okla-

homa and $7,500 while she lived in the other state. She also earned $10,000 rental income

from farmland located in Oklahoma. Line 1 would be $22,500, the amount of personal service

income included in the “Oklahoma Amount” column and taxed by another state. The $7,500

she earned while a nonresident of Oklahoma, is not taxed by Oklahoma.

Line 6

Include only the amount of the tax paid to another state which is attributable to the income from personal services

reported on line 1. Do not use the withholding shown on your W-2 forms.

Example:

personal services (from line 1)

total tax paid to another state = tax paid to another state

total income from another state

(not withholding tax)

Example 1. Bill is an Oklahoma resident, filing Form 511. The other state’s return shows $5,000 in wages,

$7,000 in rental income from the other state, and $8,000 from the sale of a house located in

the other state. The other state’s total tax liability is $546. Since only the $5,000 in wages is

income from personal services subject to tax in both states, line 6 would be computed as fol-

lows:

$5,000 X $546 = $137

$20,000

Example 2. (continued from Line 1, Example 2 above)

The other state taxed all of Beth’s wage income; however, only the portion she earned while

an Oklahoma resident was taxed by both states (see line 1). Her other state’s total tax liability

was $754. Beth determines the portion of the other state’s tax that is attributable to the por-

tion of her wage income which is being taxed in both states as follows:

$22,500 X $754 = $566

$30,000

Form 511tx - Credit For Tax Paid To Another State - 2012 Page 2

Related Articles

Related forms

Related Categories