What is the Oklahoma Earned Income Credit and how is it calculated?
Your Oklahoma Earned Income Credit is equal to 5% of your federal Earned Income Credit. However, the Oklahoma Tax Commission requires that we recalculate your federal Earned Income Credit using the 2020 federal eligibility rules and EIC tables. So, what you see won't necessarily be 5% of the Earned Income Credit on your 2025 federal return.
Example: If your earned income gives you a credit of $1,000 using the 2020 federal EIC tables, your Oklahoma Earned Income Credit will be $50 because $50 is 5% of $1000.
Additionally, the Oklahoma Tax Commission permits taxpayers to calculate their EIC using their 2024 earned income. If your 2024 earned income results in a larger credit, we use that amount instead of your 2025 earned income.
For more detail, see Form 511-EIC within your Oklahoma tax return.
Also note that if your Oklahoma adjusted gross income (AGI) is less than your federal AGI, your Oklahoma credit will be reduced (see Oklahoma Schedule 511-G or 511-NR-F).
Example: If your earned income gives you a credit of $1,000 using the 2020 federal EIC tables, your Oklahoma Earned Income Credit will be $50 because $50 is 5% of $1000.
Additionally, the Oklahoma Tax Commission permits taxpayers to calculate their EIC using their 2024 earned income. If your 2024 earned income results in a larger credit, we use that amount instead of your 2025 earned income.
For more detail, see Form 511-EIC within your Oklahoma tax return.
Also note that if your Oklahoma adjusted gross income (AGI) is less than your federal AGI, your Oklahoma credit will be reduced (see Oklahoma Schedule 511-G or 511-NR-F).
