Oklahoma Military Return

[kate]

I have clients who are both active duty military and were married in 2025.  Husband is a Florida resident stationed in Virginia; wife is Oklahoma resident stationed in Maryland.  The husband has never been to Oklahoma, and the wife was not there during 2025.

Oklahoma directions are pretty clear that a resident military married to a nonresident military member needs to use the same filing status as federal -- MFJ or MFS.  When I do the MFJ return. all of the husband's income shows as non-Oklahoma, the wife's income accurately shows as Oklahoma income and then is subtracted out as military pay.  They end up owing tax on the husband's income. (which is tax free in Florida so no credit to offset).

Their federal return is MFJ.  Very little tax difference to do MFS.  However, both fully funded Roth IRAs and would need to recharacterize or withdraw the contribution by 4/15.

Does anyone know a work around here since the husband never has been to Oklahoma and has no OK source income?  I found one reference online to a mail in MFS return to address the issue but no detail about authority to do so or whether this is correct.

I also considered having them both file as Florida residents using his residency, since it is their first year of marriage.  It is not clear that she can use his state of residency since she also is active duty military.

Any thoughts/guidance?  TIA.

[Terry53029]

For a couple that are both active military you file them MFJ for federal, and MFS for state.

You say OK directions are clear if Only one of the couple is active military, but you say both are active military which is it

[kate]

Thanks - your response was cut short.  Will you please send the rest?  I would love to file them MFS, which is what I am doing for the Virginia return.

Page 9 of 511NR instructions says "The above exception does not apply if either spouse is a part-year resident or if an Oklahoma resident (either civilian or military) files a joint federal return with a nonresident military spouse.  They shall use the same filing status as on the federal return."

[Terry53029]

I haven't run across your situation, but I believe military couples (both active) can file with different status for federal, and state in any state.This is what turbo tax says  about OK " You can also file married joint for federal and separate for CA and OK." this was an answer to a military couple one with a record of resident in CA and one in OK

This is from page 9 of 2025 911.It is different from what you are saying????

The filing status for Oklahoma purposes is the same as on the federal income tax return, with one exception. This
exception applies to married taxpayers who file a joint federal return where one spouse is an Oklahoma resident (either
civilian or military), and the other is a nonresident civilian (non-military). In this case the taxpayer must either:
• File as Oklahoma married filing separate. The Oklahoma resident, filing a joint federal return with a nonresident
civilian spouse, may file an Oklahoma return as married filing separate. The resident will file on Form 511 using
the married filing separate rates and reporting only their income and deductions. If the nonresident civilian has an
Oklahoma filing requirement, they will file on Form 511-NR using married filing separate rates and reporting only
their income and deductions. Form 574 Resident Nonresident Allocation must be filed with the return(s). You can
obtain this form from our website at tax.ok.gov.