What other adjustments might I qualify for?

NOTE: If you are mailing your return and need to send additional documentation for your adjustments, be sure to include this information with your return. If you are e-filing your return, retain the information in your records for three years in case the Oklahoma Tax Commission requests it.
  • Qualified Medical Savings Account/Health Savings Account:

    If you took an HSA Deduction on your federal return, you can't claim this deduction on your Oklahoma return.

    You can subtract the amount of contributions made to and interest earned from your Oklahoma Medical Savings Account (MSA) or Health Savings Account (HSA) from your adjusted gross income. In order to qualify for this subtraction your MSA or HSA program must be approved by either the State Department of Health or the Insurance Commissioner.

    You should receive a statement of the contributions made and interest earned from the trustee of the plan. Your W-2 (W2) doesn't count as a statement for this. You'll need to include your statement and a copy of your federal return when you mail in your Oklahoma return. If you are e-filing your return this statement should be included with Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return. We'll attach a copy of your federal return when we e-file it.

  • Agricultural Commodity Processing Facility Exclusion:
    Owners of agricultural commodity processing facilities may exclude 15% of their investment in a new or expanded agricultural commodity processing facility located within Oklahoma. "Agricultural commodity processing facility" is defined as buildings, structures, fixtures, and improvements used or operated primarily for the processing or production of agricultural commodities to marketable products. The investment is deemed made when the property is placed in service. Under no circumstances shall this exclusion lower your taxable income below zero. In the event the exclusion does exceed income, any unused portion may be carried over for a period not to exceed six years.

    A schedule must be enclosed showing the type of investment(s), the date placed in service, and the cost. If the total exclusion available is not used, a copy of the schedule must be enclosed in the carryover year and show the total exclusion available, the amount previously used and amount available in the carryover year. If the exclusion is through a Partnership or S corporation, the schedule must also include the Partnership's or S corporation's name and ID number and your pro-rata share of the exclusion. If you're e-filing your return, you should send this schedule with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Depreciation Adjustment for Swine or Poultry Producers:
    Individuals who are swine or poultry producers may deduct depreciation on an accelerated basis for new construction or expansion costs. The same depreciation method elected for federal income tax purposes will be used, except the assets will be deemed to have a 7 year life. Any depreciation deduction allowable is the amount so computed minus the federal depreciation claimed.

    Enclose a copy of the federal Depreciation Schedule and a computation of the Accelerated Oklahoma Depreciation. If you're e-filing your return, you should send these schedules with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.
    Note: Once you have fully depreciated an asset on your Oklahoma return, you must add back any depreciation deducted on your federal return.

  • Discharge of Indebtedness for Farmers:
    An individual engaged in production of agriculture may exclude income resulting from the discharge of indebtedness incurred to finance the production of agricultural products.

    Enclose federal Schedule F and Form 1099-C or other substantiating documentation. If you're e-filing your return, we'll include a copy of your federal Schedule F, but you'll need to send any Form 1099-Cs or other documentation with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Oklahoma Police Corps Program Scholarship/Stipend:
    You may deduct any scholarship or stipend, received from participation in the Oklahoma Police Corps Program, that is included in your federal adjusted gross income.

    Enclose documentation to support amount claimed and a copy of your federal return. If you're e-filing your return, you should send this documentation with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Deduction for Living Organ Donation:
    You may deduct up to $10,000 of unreimbursed expenses if you or your dependent donates one or more human organs while living. "Human organs" mean all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow. The deduction is allowed only one time and may be claimed only for unreimbursed expenses that are incurred by you and related to the organ donation of you or your dependent. The deduction may only be claimed in the taxable year in which the transplant occurs.

    Enclose a detailed schedule of expenses claimed. If you're e-filing your return, you should send this schedule with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Safety Pays OSHA Consultation Service Exemption:
    An employer that is eligible for and utilizes the Safety Pays OSHA Consultation Service provided by the Oklahoma Department of Labor shall receive a $1,000 exemption for the tax year the service is utilized.

    If this exemption is through a Partnership or S corporation, include a statement with the Partnership's or S corporation's name, ID number, and your pro-rata share of the exemption. If you're e-filing your return, you should send this statement with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Qualified Refinery Property:
    If a qualified Oklahoma refinery elected to expense the cost of qualified refinery property, enter any of such expense allocated to you.

    Enclose a copy of the written notice received from the refinery indicating the amount of the allocation. The notice should include the company's name and federal identification number. If you're e-filing your return, you should send this documentation with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Cost of Complying with Sulfur Regulations:
    If a qualified refinery elected to allocate all or a portion of the cost of complying with sulfur regulations to its owners, enter the portion of such cost allocated to you. Enclose a copy of the written notice received from the refinery indicating the amount of the allocation. Such notice should include the company's name and federal identification number. If you're e-filing your return, you should send this documentation with your Oklahoma Form 511EF which will be available to you later once you have purchased your Oklahoma return.

  • Emergency Medical Personnel Death Benefit Exclusion:
    The $5,000 death benefit paid to the designated beneficiary of an Emergency Medical Technician (EMT) or a registered medical responder whose death is a result of their official duties performed in the line of duty is exempt. Deduct the $5,000 death benefit if such death benefit is included in your federal adjusted gross income.

  • Competitive Livestock Show Award:
    You may deduct any payment of less than $600 received as an award for participation in a competitive livestock show event. You must be able to substantiate this deduction upon request.

  • Indian Employment Exclusion:
    All qualified wages equal to the Federal Indian Employment Credit set forth in 26 U.S.C.A., Section 45A, shall be deducted from taxable income. Deduct on your Oklahoma return, an amount equal to the reduction of salaries and wages reported on your federal return as a result of your Form 8845 "Indian Employment Credit". The deduction shall only be permitted for the tax years in which the federal credit is allowed, even if not used in such year because of your tax liability limit. Enclose a copy of the federal return, Form 8845 and if applicable, Form 3800.

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