573: 2025 Form 573 Farm Income Averaging (2025)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2025
Oklahoma Form 573 lets you elect to calculate your 2025 tax by averaging all or part of your taxable farming income over the three previous base years, 2022 through 2024. It calculates the tax to enter on Form 511 or Form 511-NR and must be provided with your Oklahoma tax return.
Who files this form
Use Form 573 if you elect to figure your 2025 Oklahoma tax by averaging all or part of your 2025 taxable income from your farming business over the three base years: 2022, 2023, and 2024.
This is an election, not a requirement for every farmer. It may lower your tax if your 2025 farming income is high and your taxable income in one or more of those prior years was low.
What you'll need
Have these forms and amounts available:
- Your 2025 Form 511 or Form 511-NR, including taxable income from line 13.
- The amount of 2025 taxable income from your farming business that you choose to average.
- Your 2022, 2023, and 2024 Oklahoma returns, for prior-year taxable income and tax amounts.
- Your Forms 573 for those prior years, if you used farm income averaging. Page 3 explains which amounts to use.
- If applicable, your Form 511-NOL or Form 511-NR-NOL, Schedules A and B, for the required net operating loss adjustments.
- The 2025 Tax Table for line 4 and the prior-year tax rate schedules printed on page 2.
The form also asks for your name and Social Security number.
How to file
Provide Form 573 with your Oklahoma tax return.
Enter the tax calculated on Form 573, line 22, on Form 511, line 14a, or Form 511-NR, line 14a. Enter a “1” in the box for “Farm Income Averaging.”
The supplied text does not give a mailing address or instructions for electronic filing.
Common mistakes
- Electing too much income: Your elected farm income on line 2 cannot exceed the taxable income on line 1.
- Missing loss adjustments: For base-year taxable income on lines 5, 9, and 13, add back that year's net operating loss being carried to another year. Also add back any unused net operating loss carryover or carryback being carried to the following year, as directed in the instructions.
- Treating all negative results alike: If line 7 is less than zero, enter “0.” If line 11 or line 15 is less than zero, enter a negative amount.
- Omitting the election indicator: Transfer line 22 to your return and enter “1” in the “Farm Income Averaging” box.
- Leaving out Form 573: Provide it with your Oklahoma tax return.
Questions people ask
Do I have to average all my farming income?
No. You may elect to average all or part of your 2025 taxable income from farming. The amount on line 2 cannot exceed line 1.
Which years are used for averaging?
For the 2025 election, the three base years are 2022, 2023, and 2024.
Can a gain from selling farm property count as farming income?
A gain from selling or otherwise disposing of property other than land is treated as attributable to your farming business if you regularly used the property in that business for a substantial period.
What if I used farm income averaging in a prior year?
Follow the directions on page 3. Depending on which years you used Form 573, those directions may require amounts from your earlier Forms 573 to determine base-year taxable income and tax.