SECTION 710:50-15-50. Deductions

(a)   In the event federal itemized deductions are used on the federal return, federal itemized deductions must be used on the Oklahoma return. Oklahoma itemized deductions to income will be the same as federal itemized deductions, subject to the limitations in (i) of this Section. In the event the standard deduction is used on the federal return, the Oklahoma standard deduction must be used on the Oklahoma return.

(b)   For tax year 2005 and prior, the standard deduction for Oklahoma is the larger of $1,000.00 or 15% of Oklahoma Adjusted Gross Income not to exceed $2,000.00 (if married filing separately, the larger of $500.00 or 15% not to exceed $1,000.00).

(c)   For tax year 2006, taxpayers filing as married joint, head of household or surviving spouse will have a standard deduction for Oklahoma of $3,000.00. Taxpayers filing as single or married separate will have a standard deduction for Oklahoma of $2,000.00.

(d)   For tax year 2007, taxpayers filing as married joint or surviving spouse will have a standard deduction for Oklahoma of $5,500.00. Taxpayers filing as single or married separate will have a standard deduction for Oklahoma of $2,750.00. Taxpayers filing as head of household will have a standard deduction for Oklahoma of $4,125.00.

(e)   For tax year 2008, taxpayers filing as married joint, or surviving spouse will have a standard deduction for Oklahoma of $6,500.00. Taxpayers filing as single or married separate will have a standard deduction for Oklahoma of $3,250.00. Taxpayers filing as head of household will have a standard deduction for Oklahoma of $4,875.00.

(f)   For tax year 2009, taxpayers filing as married joint, or surviving spouse will have a standard deduction for Oklahoma of $8,500.00. Taxpayers filing as single or married separate will have a standard deduction for Oklahoma of $4,250.00. Taxpayers filing as head of household will have a standard deduction for Oklahoma of $6,375.00.

(g)   For tax year 2010 through tax year 2016, taxpayers will have a standard deduction for Oklahoma equal to the standard deduction allowed by the Internal Revenue Code of 1986 based upon the amount and filing status prescribed by the Code for purposes of filing federal individual income tax returns.

(h)   For tax year 2017 and subsequent tax years, taxpayers filing as married joint or qualifying widow will have a standard deduction for Oklahoma of $12,700.00. Taxpayers filing as single or married separate will have a standard deduction for Oklahoma of $6,350.00. Taxpayers filing as head of household will have a standard deduction for Oklahoma of $9,350.00.

(i)   Oklahoma itemized deductions to income will be the same as federal itemized deductions, subject to the following limitations:

(1)   For tax year 2016 and subsequent tax years, taxpayers shall add back state and local sales or income taxes which were allowed as an itemized deduction on the federal income tax return.

(2)   For tax year 2017 and subsequent tax years, state and local sales or income taxes which were not allowed as an Oklahoma itemized deduction but were required to be recaptured on the federal income tax return will not be included in Oklahoma taxable income.

(3)   For tax year 2018 and subsequent tax years, Oklahoma itemized deductions may not exceed $17,000.00 provided charitable contributions and medical expenses deductible for federal income tax purposes are excluded from the $17,000.00 cap.

[Source: Amended at 23 Ok Reg 2824, eff 6-25-06; Amended at 24 Ok Reg 2359, eff 6-25-07; Amended at 27 Ok Reg 2281, eff 7-11-10; Amended at 34 Ok Reg 81, eff 9-30-16; Amended at 34 Ok Reg 2065, eff 9-11-17; Amended at 35 Ok Reg 2066, eff 9-14-18; Amended at 36 Ok Reg 35, eff 10-7-18 (emergency); Amended at 36 Ok Reg 1216, eff 8-11-19]