As an Oklahoma resident, can I exclude any of my military wages from Oklahoma income tax?

An Oklahoma resident who is a member of any component of the Armed Services may exclude a portion
of his/her taxable active duty military pay. This includes Reserve and National Guard pay. (Form 511, Schedule 511-C or Form 511NR, Schedule 511NR-C)

Effective July 1, 2010 through tax year 2014, the military pay exclusion will increase from $1,500 to 100%. The military member will be entitled to a $1,500 exclusion for the income earned during the first six months and a 100% exclusion on the income earned during the 2nd six months. There will be a worksheet in the income tax packet to help determine the exclusion.

Note: Any individual who is retired from any component of the Armed Forces may exclude the greater of $10,000 or 75% of their retirement income beginning with tax year 2007 (50% for 2006). (Form 511, Schedule 511-A or Form 511NR, Schedule 511NR-B). For prior year exclusions, please see applicable individual income tax packet.

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