Oklahoma 511-A: Line 1, Interest on US Government Obligations

Yes. Line 1 of Oklahoma Schedule 511-A will include the U.S. government portion of a dividend if you made an adjustment in TurboTax.

• In the dividend section, you will see Tell us if any of these uncommon situations apply to you.
• Select A portion of these dividends is U.S. government interest. Continue.
• Enter the amount of U.S. government interest.

In the Oklahoma section there is a screen to adjust for capital gains.

Oklahoma says:

If you report interest on bonds, notes and other obligations of the U.S. Government on your federal return, this income may be excluded from your Oklahoma AGI if a detailed schedule is furnished, accompanied with 1099s showing the amount of interest income and the name of the obligation from which the interest is earned.

If the income is from a mutual fund that invests in U.S. Government obligations, provide documentation from the mutual fund to substantiate the percentage of income derived from obligations exempt from Oklahoma tax. Interest from entities such as FNMA and GNMA does not qualify.

Note: The capital gain/loss from the sale of an U.S. Government obligation is exempt. Enter exempt gains on Schedule 511-A, line 11 and exempt losses on Schedule 511-B, line 8.

See page 16 of the 2020 511 Packet Instructions