Oklahoma Form 511 Line by Line Guide
Did you know 9 states do not require residents to pay a personal income tax? Folks that live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, are exempt from this bill. Furthermore, 7 other states simply enforce a flat tax rate. So what's the moral to the story? People who live in these states are able to buy more stuff because they pay less tax.
But for the rest of us, residential income tax is a necessary evil, one that takes a serious bite out of our disposable income. And while the forms are designed to collect the same data, they're all constructed differently. What follows is a breakdown of Form 511, the Oklahoma Individual Income Tax Return. If you don't live in Oklahoma, not to worry, we'll be tackling the other 34 states soon enough.
Oklahoma's Form 511 is like a Maxim magazine cover, it's easy on the eyes. At 2 pages and only 39 Lines it's not terribly long and isn't set up to confuse. My biggest gripe with the form is all the schedules that go along with it. Really are schedules running from the letter A to the letter H necessary? Still, the main form is well built and deserves a rather high 7 of 10 on our user-friendly meter. Sooner fans shouldn't have too much trouble working through this creampuff.
Begin by filling in your name, address, and Social Security number at the top of the page. Then you can bang out your filing status and exemptions before moving on to the meat of Form 511. Capiche?
Enter your federal adjusted gross income on Line 1 and if necessary any state specific subtractions from Schedule 511-A on Line 2. Then subtract Line 2 from Line 1 on Line 3. If you've earned any out-of-state income, include it on Line 4b. If you need to make any additions to your pay, include a Schedule 511-B on Line 6. Now you can add Line 5 to Line 6 to get your Oklahoma adjusted gross income, which goes on Line 7.
If you have to make further adjustments, attach a Schedule 511-C and enter the amount on Line 8. Now subtract Line 8 from Line 7 to yield your income net of any adjustments. Enter the larger of your Oklahoma standard deduction ($5,800) or your federal itemized deduction on Line 10. Multiply the number of your exemptions by $1,000 on Line 11.
Add Lines 10 and 11 on Line 12 to get your total deductions and exemptions, if you're a nonresident, be sure to include a Schedule 511-D. Now, subtract Line 9 from Line 12 to get your Oklahoma taxable income, which goes on Line 13. Look up your income in the tax table (pages 20 – 31 of the instruction booklet) and enter the amount of your tax on Line 14.
If the Oklahoma childcare tax credit applies, enter it on Line 15. If you paid taxes to another state or filled out a Form 511CR (because you've got a bunch of other credits coming to you), work through Lines 16 and 17. Now subtract the total from Lines 15 through 17 from Line 14 and enter your income tax on Line 18. And that's a wrap on Page 1.
Carry forward the amount from Line 18 at the bottom of page 1 to Line 19 at the top of page 2. If you bought stuff out of state (and didn't pay tax on it), enter your use tax on Line 20. Just be sure to check the box, if no additional tax is due. Line 21 is for a business use tax, just be sure to include a Form 511-BAT if it applies. Now add Lines 19 through 21 to get your total tax (AKA balance), which goes on Line 22.
Enter your Oklahoma withholdings on Line 23, estimated tax payments on Line 24, and extension payments on Line 25. If you've earned a low-income property tax credit, include it on Line 26; just be sure to attach a Form 538-H. If you're due a sales tax relief credit or god forbid a tornado credit, enter those amounts along with the applicable forms on Line 27.
Look up the instruction booklet (and Schedule 511-F) to claim your Oklahoma Earned Income Credit, which goes on Line 28. Now add Lines 23 through 28 to get your total payments and credits, which goes on Line 29.
Drum roll please?
If Line 29 is more than Line 22, you've overpaid; enter the difference on Line 30. If you want portion of this to be applied to next year, or if you want to donate to a number of good causes, work through the next couple of Lines. Otherwise, enter the amount of your overpayment that you want refunded to you on Line 34. Just be sure to include your direct deposit information on the next couple of lines so you can get your money as fast as possible.
But if Line 22 is more than Line 29, enter that difference on Line 35, this is your tax that's due. If you've incurred underpayment penalties or interest, you'll have to include those amounts on the next couple of lines. Now add Lines 35 through 38 to get your total tax with penalties and interest on Line 39.
All that's left is to sign, date and state your occupation at the bottom of the form. If you had a tax pro help you, they too will fill in their vitals. At this point the Oklahoma Department of Revenue reminds you to use paper clips to attach documents to this form. It also reminds you that it is not required to give actual notice to taxpayers regarding the changes of any state tax law. HA!
