How do I claim the Indian Employment Exclusion?

Due to the late passing of Federal law regarding the Federal Indian Employment Credit, the Indian Employement Exclusion was not included in the Oklahoma income tax forms/instructions. Please read the instuction below to see if you are entitled to this exclusion and how to claim on your 2006 form.

All qualified wages equal to the Federal Indian Employment Credit set forth in 26 U.S.C.A., Section 45A, shall be deducted from taxable income. Deduct on the Oklahoma return, an amount equal to the reduction of salaries and wages reported on the Federal return as a result of the Form 8845 "Indian Employment Credit". The deduction allowed shall only be permitted for the tax year in which the Federal credit is allowed, even if not used in such year because of tax liability limit. Enclose a copy of the Federal return, Form 8845 and, if applicable, Form 3800.

Partners and shareholders: Include the partnership's or S corporation's name and ID number and your pro-rata share of the exclusion.

Below is a list of forms and lines numbers for entering such exclusion:

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