2012 Oklahoma Individual Income Tax Forms and Instructions for ...

B14
Miscellaneous: Other Subtractions
Enter in the box on Schedule 511NR-B, line 14, the appropriate
number as listed below, which shows the type
of income you are subtracting. If you are entitled to more
than one type of deduction, enter the number “99”.
• Enter the number “1” if the following applies:
Royalty income earned by an inventor from a product developed
and manufactured in this state shall be exempt
from income tax for a period of seven years from January
1 of the first year in which such royalty is received as
long as the manufacturer remains in this state. (74 OS
Sec. 5064.7 (A)(1))
To support your deduction please furnish:
1) copy of the patent.
2) copy of the royalty agreement with the Oklahoma
manufacturer.
3) copy of registration form from Oklahoma Department
of Commerce or Oklahoma Center for
the Advancement of Science and Technology
(OCAST).
• Enter the number “2” if the following applies:
Manufacturer’s exclusion. (74 OS Sec. 5064.7 (A)(2))
• Enter the number “3” if the following applies:
Historical Battle Sites: There shall be a deduction,
limited to 50% of the capital gain, if you sell to the State
of Oklahoma any real property which was the site of a
historic battle during the nineteenth century and has
been designated a National Historic Landmark. (68 OS
Sec. 2357.24)
C1 Military Pay Exclusion
Oklahoma residents who are members of any component
of the Armed Services may exclude 100% of their
active military pay, including Reserve & National Guard
pay, received during the time they were a resident. The
military pay must be included in line 1 of the “Oklahoma
Amount” column to qualify for this exclusion. Retired
military see instructions for Schedule 511NR-B, line 4.
C2
Qualifying Disability Deduction
If you are a resident or part-year resident individual with
a physical disability constituting a substantial handicap
to employment, you may deduct the expense incurred
while you were a resident to modify a motor vehicle,
home, or work place necessary to compensate for the
disability. Please enclose a schedule detailing the
expenses incurred and a description of the physical disability
with documentation regarding the Social Security
or Veterans Administration recognition and/or allowance
of this expense.
Schedule 511NR-B
Schedule 511NR-C
21
Miscellaneous: Other Subtractions (continued)
• Enter the number “4” if the following applies:
Small Business Incubator exclusion: Exemption for
income earned by the sponsor. (74 OS Sec. 5075) Exemption
for income earned by the tenant. (74 OS Sec.
5078)
• Enter the number “5” if the following applies:
Payments received as a result of a Military member being
killed in a combat zone: Any payment made by the
United States Department of Defense as a result of the
death of a member of the Armed Forces who has been
killed in action in a designated combat zone shall be
exempt from Oklahoma income tax during the taxable
year in which the individual is declared deceased by the
Armed Forces. (68 OS Sec. 2358.1A)
• Enter the number “6” if the following applies:
Income earned by an individual whose Military spouse
was killed in a combat zone: Any income earned by the
spouse of a member of the Armed Forces of the United
States who has been killed in action in a designated
combat zone shall be exempt from Oklahoma income
tax during the taxable year in which the individual is
declared deceased by the Armed Forces. (68 OS Sec.
2358.1A)
• Enter the number “99” if the following applies:
Allowable deductions not included in (1) through (6):
Enter any allowable Oklahoma deductions from Federal
Adjusted Gross Income to arrive at Oklahoma Adjusted
Gross Income that were not previously claimed under
this heading “Miscellaneous: Other Subtractions”.
Enclose a detailed explanation specifying the type of
subtraction and Oklahoma Statute authorizing the subtraction,
and verifying documents.
C3 Political Contribution
If you contributed money to a political party or candidate
for political office, you may deduct the amount contributed
up to a maximum of $100 ($200 if a joint return is
filed).
C4 Interest Qualifying for Exclusion
During the period of residency, residents and part-year
residents may partially exclude interest received from
a bank, credit union or savings and loan association
located in Oklahoma. The total exclusion for interest
claimed on your state return cannot exceed the interest
received from an Oklahoma bank, credit union or
savings and loan association included on Form 511NR,
line 2, of the “Oklahoma Amount” column or $100 [$200
if filing jointly even if only one spouse received interest
income], whichever is less.