Question

Please clarify total amount under depletion

Forum|Forum|3 years ago
April 14, 2023
2 replies
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under state taxes, oklahoma allows an additional 7%. What goes under total amount?

TurboTax Online

Employee

What line or what form do you see the 7%?

The only depletion deduction I know of for Oklahoma is very rare. Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property during the taxable year. The depletion deduction is the amount computed minus the federal depletion claimed. If Oklahoma options are exercised, the federal depletion not used due to the 65% limit may not be carried over.

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J

jbspriv1Author

Under state taxes, there are 2 boxes under depletion. TurboTax asks for “total amount” and Oklahoma amount. Is “total amount” the 22% or the 15% federal amount? Obviously the Oklahoma amount is 22% - 15% federal. When you pull up the form where everything goes, it lists it as “additional depletion”. There are 2 columns, one for federal and one for state. Not sure why there would be an amount for federal as there is no additional depletion for federal.

thank you

E

ErnieS0

Enter your federal depletion (15%) in the total amount box and the additional 7% in the Oklahoma amount box. The total of the two boxes should equal 22% depletion.

See Tax Expert @PaulaM's answer at My royalty depletion at 22% is $2,878. At 15% is $1,963. What should I enter in Box "Total Amount" and "Oklahoma Amount" on the "Oklahoma Oil Depletion Adjustment" screen.

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