511-TX: 2024 Form 511-TX Credit for Tax Paid to Another State (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form 511-TX calculates the credit for tax paid to another state on income from personal services taxed by both states. It reports the shared taxable income, the applicable tax amounts and the credit claimed on Form 511 or Form 511-NR.
Who files this form
Form 511-TX is used to claim Oklahoma’s credit for tax paid to another state.
You may qualify if you are:
- An Oklahoma resident with income from personal services performed in another state that is taxed by both states. Report the full amount of that income on Form 511.
- A part-year resident with income from personal services performed in another state while you were an Oklahoma resident. The income must be included in the “Oklahoma Amount” column of Form 511-NR and taxed by the other state.
Nonresidents do not qualify. You also cannot claim this credit on income for which you claimed a credit for taxes paid to another state on the other state’s income tax return.
What you'll need
Provide these with your Oklahoma return:
- A completed Form 511-TX. Use a separate form for each state if you paid taxes to more than one state.
- A complete copy of the other state’s tax return and copies of all W-2 forms.
- A copy of Form W-2G if the taxing state does not allow a return to be filed for gambling winnings.
You will also need the Oklahoma adjusted gross income and income tax amounts from your Form 511 or Form 511-NR to complete the credit calculation.
How to file
Provide Form 511-TX and the required supporting copies with your Oklahoma return.
To complete the form:
- Enter your name and Social Security number as shown on Form 511 or Form 511-NR.
- On line 1, enter qualifying personal-service income taxed by both Oklahoma and the other state.
- On line 2, enter Oklahoma adjusted gross income from Form 511, line 7, or Form 511-NR, line 6.
- Divide line 1 by line 2 for the percentage on line 3. It cannot exceed 100%.
- On line 4, enter Oklahoma income tax from Form 511, line 14, or Form 511-NR, line 19. Multiply it by line 3 to get the limitation on line 5.
- On line 6, enter only the other state’s tax attributable to the personal-service income on line 1, not W-2 withholding.
- Enter the lesser of line 5 or line 6 on line 7. Also enter that credit on Form 511, line 16, or Form 511-NR, line 20.
Common mistakes
- Using withholding instead of tax. Line 4 uses Oklahoma income tax, not the amount withheld. Line 6 must not use withholding shown on your W-2 forms.
- Including income that does not qualify. Do not include interest, dividends, taxable refunds, unemployment compensation, rental income or oil and gas royalty income on line 1. Also exclude retirement benefits that the nonresident state is prohibited from taxing, such as IRA distributions, pensions and annuities.
- Including too much income as a part-year resident. Use only personal-service income included in the “Oklahoma Amount” column of Form 511-NR and taxed by another state.
- Using all of the other state’s tax. Line 6 includes only the tax attributable to the qualifying income on line 1.
- Exceeding the percentage limit. Line 3 cannot exceed 100%.
- Leaving out required attachments. Provide the supporting return and tax documents, and a separate Form 511-TX for each state.
Questions people ask
What counts as income from personal services?
Wages, salaries, commissions and other pay for personal services qualify when taxed by both Oklahoma and the other state. Gambling winnings are also treated as personal-service income for this credit.
Can a nonresident claim this credit?
No. The form states that nonresident taxpayers do not qualify.
What if I paid income tax to more than one state?
Provide a separate Form 511-TX for each state, along with a complete copy of each other state’s return, including W-2s.
What if the other state does not allow a return for gambling winnings?
Provide a copy of Form W-2G if the taxing state does not allow a return to be filed for those winnings.
How much is the credit?
The credit is the lesser of the limitation calculated on line 5 or the other state’s tax attributable to qualifying personal-service income on line 6.