I am an Oklahoma resident married to a nonresident military member. We file a joint Federal return. How should be file
in Oklahoma?

You will file a joint Oklahoma return, using Form 511NR to allocate the Federal income between Oklahoma and the other state.

The Form 511-NR computes Oklahoma taxable income "as if" all the income were earned in Oklahoma. In most cases, a base tax would have been computed using all of your income, both you and your spouse’s. However, your spouse’s military wages are protected under the Soldiers’ and Sailors’ Relief Act. This Act provides that only the military member’s state of residence can tax his/her military wages. Therefore, your spouse’s nonresident military wages are subtracted so they are not included in taxable income and not used to compute the base tax. The rest of your spouse’s income is not protected and therefore is used to compute the base tax.

Since all of your income was not earned in Oklahoma, we can not collect all of the base tax. The base tax is prorated using a percentage of the AGI from Oklahoma sources divided by the AGI from all sources. The result is your Oklahoma income tax, which is the tax attributable to Oklahoma source income.

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