Depending on how much you earn and your residency status in Oklahoma, you may have to file a state income tax return by the deadline to avoid potential penalties for unpaid taxes. The state uses two tax forms for full-time residents versus other individual taxpayers, and has six tax brackets. You can use the Oklahoma online taxpayer portal to conveniently access a free electronic filing option, get tax documents, watch your refund, make tax payments and submit various other important documents.
Who Must File Oklahoma Income Taxes?
When determining who has to file a return, the state of Oklahoma considers various forms of taxable income earned from full-year residents, part-year residents and nonresidents. For example, you might work for an Oklahoma employer, earn rental income while out of state or do freelance work performed remotely.
Different income thresholds apply to Oklahoma resident and nonresident taxpayers in terms of who gets an exemption from filing a return.
Full-year residents must file only when their gross incomes are more than the personal exemption and standard deduction based on filing status. This means you'd file with a 2021 income over $7,250 if filing single or $14,700 if filing jointly.
Oklahoma part-year residents and nonresidents file with $1,000 or more in gross income for the tax year regardless of filing status.
What Are the Forms to Use?
The Oklahoma Tax Commission offers the latest tax forms on their website along with detailed instructions that guide you on completing them. If you're a full-year resident, you'll use Form 511 for your Oklahoma tax return. Otherwise, you'll complete form 511-NR as a part-year resident or nonresident. The forms will allow you to take advantage of various tax credit and deduction options to reduce your tax liability.
When filling out these tax forms, you'll come across various schedules. When you file a resident return, these include Schedules 511-A, 511-B and 511-C for subtractions, additions and adjustments to income along with Schedule 511-D for itemized deductions. You can also use Schedule 511-F for the child tax credit and Schedule 511-G for the earned income credit.
What Is the Tax Rate in Oklahoma?
Oklahoma taxpayers pay state taxes based on six rates that vary based on income ranges and filing statuses:
- 0.5 percent if filing single with a taxable income of $0 to $1,000 or $0 to $2,000 if married filing jointly or as head of household
- 1 percent plus $5 if filing single with a taxable income of $1,000 to $2,500 or 1 percent plus $10 with a taxable income of $2,000 to $5,000 if married filing jointly or as head of household
- 2 percent plus $20 if filing single with a taxable income of $2,500 to $3,750 or 2 percent plus $40 with a taxable income of $5,000 or $7,500 if married filing jointly or as head of household
- 3 percent plus $45 if filing single with a taxable income of $3,750 to $4,900 or 3 percent plus $90 with a taxable income of 7,500 to $9,800 if married filing jointly or as head of household
- 4 percent plus $79.50 if filing single with a taxable income of $4,900 to $7,200 or 4 percent plus $159 with a taxable income of $9,800 to $12,200 if married filing jointly or as head of household
- 5 percent plus $171.50 if filing single with a taxable income over $7,200 or 5 percent plus $255 with a taxable income over $12,200 if married filing jointly or as head of household
What Are the Filing Deadline and Extension Process?
Oklahoma uses the federal tax return and tax payment deadline that's usually on April 15. Due to the Good Friday holiday, your filing deadline will move to April 18, 2022. In addition, filing electronically in Oklahoma gives you a later tax filing due date of April 20, 2022.
If you can afford to pay at least 90 percent of your unpaid Oklahoma taxes, the state can give you a six-month extension to file your return by Oct. 17, 2022. The method for requesting this depends on whether the IRS gave you a federal tax extension.
If you've got a federal extension, you can just show proof of it when you eventually submit your Oklahoma income tax return. Otherwise, you'll need to fill out Form 504-I. You'll mail this extension form by the original tax deadline if you're using a money order or check for your tax payment. Otherwise, just request the extension when you make your online tax payment and show proof when you file later.
What Are the Penalties for Late Filing and Underpayment of Taxes?
Oklahoma's tax laws don't include a penalty simply for filing your tax return late without owing the state money. So, you wouldn't pay any penalty if you filed late but are getting a refund or have no tax liability at all.
But if you do owe taxes, you'll face a penalty unless you can make a 90 percent payment when you request your extension. This one-time penalty runs 5 percent of what you owe, plus you'll pay another 1.25 percent every month in interest on the unpaid tax balance.
Where Do I Mail/E-file My Oklahoma Return?
You can e-file your Oklahoma individual income tax return at no cost using the Oklahoma Taxpayer Access Point (OkTAP) website. You'll first need to create an account by providing your federal tax identification number, which would be your Social Security number along with other details. Once you log in, you'll find an option to file your state income tax return or submit an amended return.
Alternatively, you might decide to use another tax preparation provider or work with tax professionals. While tax professionals typically use electronic filing for your return, you can usually opt for either e-file or paper return options when you do your taxes yourself with third-party software.
If you file your Form 511 or 511-NR Oklahoma state income tax return by mail, send it with or without a payment to: Oklahoma Tax Commission, P.O. Box 26800, Oklahoma City, OK 73126-0800.
How Do I Pay Taxes Due?
The OkTAP website has a "Make a Payment" option prominently on the homepage. You can use this link to pay by bank account transfer, credit card or debit card if you didn't pay your tax liability at the time of filing.
In addition, you can mail a check or money order tax payment with your return, or you send it separately using the Form 511-V voucher to: Oklahoma Tax Commission, P.O. Box 26890, Oklahoma City, OK 73126-0890.
Where Can I Check My Oklahoma Refund Status?
Oklahoma provides tax refunds via either direct deposit or a debit card and doesn't offer paper checks. You generally get your refund within a few weeks when you e-file, but it can take more than a month if you mail a return and need to wait for a debit card to arrive. You can usually start checking your Oklahoma tax refund status within a few days of e-filing or a few weeks of mailing a paper return.
The OkTAP website displays a "Where's My Refund?" option under "Individuals." You can simply provide your zip code, refund amount and the last seven digits of your Social Security number to get the latest refund details. Alternatively, you can call 405-521-3160 24/7 and provide the same information to get your tax refund status.
What About Oklahoma Taxes if You’re Self-employed?
If you have pass-through business income, such as through a partnership, sole proprietorship or limited liability company, your top income tax rate would be 5 percent. You're subject to quarterly estimated tax payments like other types of businesses. Depending on your classification, you might file a regular individual income tax return reporting your self-employment income, or you might file a partnership tax return with Form 514.
What About Oklahoma Taxes if You’re a Business?
For the 2021 tax year, corporations in Oklahoma pay a higher 6 percent tax rate than individuals and self-employed taxpayers with pass-through income. Some possible tax forms to use include Form 512 for regular corporations and Form 512-S for small business corporations. You can use the OkTAP website to make your estimated payments and download business tax forms.
Rates and dates in this article are correct as of publication. Check for any changes at the Oklahoma Tax Commission website before you file.
- Oklahoma Tax Commission: Form 504-I - Application for Extension
- Oklahoma Tax Commission: 2021 Oklahoma Resident Individual Income Tax Forms and Instructions
- Oklahoma Tax Commission: 2021 Oklahoma Individual Income Tax Forms and Instructions for Nonresidents and Part-Year Residents
- Oklahoma Tax Commission: Individuals - Pay Taxes
- Oklahoma Tax Commission: Individuals - File Taxes
- Oklahoma Tax Commission: 3 Ways to File Your State Income Taxes
- Oklahoma Taxpayer Access Point: Home
- Ernst & Young: Oklahoma Reduces Tax Rates for Corporations, Individuals, Pass-through Entities and Banks
Ashley Donohoe has written about business and technology topics since 2010. Having a Master of Business Administration degree, bookkeeping certification and experience running a small business and doing tax returns, she is knowledgeable about the tax issues individuals and businesses face. Other places featuring her business writing include Zacks, JobHero, LoveToKnow, Bizfluent, Chron and Study.com.