Skip to main content
June 1, 2019
Solved

It’s says I Owe Oklahoma $371. I’m active duty military and a resident of Oklahoma. My husband is also military and a resident of Texas. All info shows we are military

  • June 1, 2019
  • 1 reply
  • 0 views
No text available
Best answer by DanielV01

You are correct,  All active duty military (and reserve) pay is tax-exempt in Oklahoma.  To resolve this:

  1. Make sure that both you and your husband are marked as active duty military in the Personal Information screens.
  2. Make sure that your W-2s are also marked as active duty income on the screen after entering them into TurboTax.
  3. On the Oklahoma resident return, look for the screen in the screenshot below and make sure that all of the military income is included in the boxes so that it is exempted.

If this results in zero tax for Oklahoma, it is possible that you may not be required to file an Oklahoma tax return, but you may choose to do so that Oklahoma does not question you later.  (Instructions for the state tax form are unclear as to whether or not your military income counts as "gross income" for filing requirement purposes.  I personally would recommend filing to show the exclusion, even if you have no tax or refund due.)

Here is the screenshot to assist you:  

1 reply

DanielV01
DanielV01Answer
June 1, 2019

You are correct,  All active duty military (and reserve) pay is tax-exempt in Oklahoma.  To resolve this:

  1. Make sure that both you and your husband are marked as active duty military in the Personal Information screens.
  2. Make sure that your W-2s are also marked as active duty income on the screen after entering them into TurboTax.
  3. On the Oklahoma resident return, look for the screen in the screenshot below and make sure that all of the military income is included in the boxes so that it is exempted.

If this results in zero tax for Oklahoma, it is possible that you may not be required to file an Oklahoma tax return, but you may choose to do so that Oklahoma does not question you later.  (Instructions for the state tax form are unclear as to whether or not your military income counts as "gross income" for filing requirement purposes.  I personally would recommend filing to show the exclusion, even if you have no tax or refund due.)

Here is the screenshot to assist you:  

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
January 30, 2021

1) In my case filer was active military for only first part of the year... then retired.  So for this 2020 return the person is no longer "active duty" 2)  Nowhere on the W-2 or screen following is there a marking for "active duty" and 3)  In the TT Oklahoma Return there is no option to indicate "military pay exclusion."  There are options for military pay for deceased personnel and for widows of deceased persons, but no option for military pay that is 100% excluded from Oklahoma Tax. 

 

Please advise

SteamTrain
January 31, 2021

Not sure about the OK part.

 

But the "Active Duty" selection after the DFAS W-2 only shows up if the person involved indicated they were Active Duty in the My Info screen...and Yes, even of it was one day during 2020, you need to mark that "I am a member or former member........" , and when you edit the information for that person, as you go thru that in the My Info section, on one of the next pages, you can then select whether the person was active duty all year, or was only part of the year.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*