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June 1, 2019
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I live in PA, I received a 1099-G from gas royalties from a property in OK. What do I say to the question, "Did you make money in any other states?"

  • June 1, 2019
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TurboTax says to say Yes if I own or inherited "rental property," and while some years I do get "rental" income from this property (a rental fee that covers some term of years by the company wanting to extract gas), most years like last year, there was no rental income - just royalty income.

Best answer by PatriciaV

Fortunately, nonresidents are required to file an Oklahoma income tax return only when they receive gross income of at least $1,000 of Oklahoma source income. Rents and royalties are included in taxable income for Oklahoma.

If the gas royalties reported on Form 1099-G are less than $1,000, you are not required to file a non-resident state income tax return.

1 reply

PatriciaV
PatriciaVAnswer
Employee
June 1, 2019

Fortunately, nonresidents are required to file an Oklahoma income tax return only when they receive gross income of at least $1,000 of Oklahoma source income. Rents and royalties are included in taxable income for Oklahoma.

If the gas royalties reported on Form 1099-G are less than $1,000, you are not required to file a non-resident state income tax return.

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June 1, 2019
It was over $1000.  My question isn't so much about whether the dollar amount warrants it (I already knew it did), it's more about what TurboTax's definition of "in" is.  I did not receive the income while physically present "in" Oklahoma, and in fact I've never been "in" Oklahoma.  The checks were all mailed from OK to my residence in PA.  So, while I certainly received income *from* Oklahoma, I am not so sure I received income *IN* Oklahoma.  I think TurboTax should make it more clear what constitutes making income "in" a state - this is a very vague way of putting it that can be interpreted multiple ways, and none of the in-program TurboTax help actually clarifies this.