Current through Vol. 42, No. 1, September 16, 2024
(a)
Effective for tax years beginning on or after January 1, 2002, there shall be
an Oklahoma Earned Income Tax Credit (EITC) for resident and part year resident
individuals.
(b) The Oklahoma EITC
shall be an amount equal to five percent (5%) of the Federal Earned Income Tax
Credit allowed under Section 32 of the Internal Revenue Code.
(1) Effective for tax years 2016 through
2021, if the credit exceeds the tax imposed by Section
2355
of Title 68, the excess amount shall not be refunded to the taxpayer, nor shall
any amount be carried forward to a subsequent tax year.
(2) For tax years beginning on or after
January 1, 2022:
(A) If the credit exceeds
the tax imposed by Section
2355
of Title 68, the excess amount shall be refunded to the taxpayer.
(B) The credit shall be computed
using the same requirements, other than the five percent (5%) amount to compute
the credit as prescribed by this section which shall remain constant, in effect
for computation of the earned income tax credit for federal income tax purposes
for the 2020 income tax year. [68 O.S. §
2357.43]
(3) The Oklahoma
EITC may not be paid in advance and must be claimed on the individual income
tax return when filed.
(c) The credit is to be prorated on the ratio
that Oklahoma Adjusted Gross Income bears to Federal Adjusted Gross Income, not
to exceed one hundred percent (100%). When the Oklahoma Adjusted Gross Income
or the Federal Adjusted Gross Income is negative the ratio will be determined
as follows:
(1) When the Oklahoma Adjusted
Gross Income is negative and is less than the Federal Adjusted Gross Income,
the ratio shall be 0%. (For example: Oklahoma Adjusted Gross Income is negative
$1,000 and the Federal Adjusted Gross Income is negative $500, the ratio shall
be 0%).
(2) When the Federal
Adjusted Gross Income is negative and is equal to or less than the Oklahoma
Adjusted Gross Income, the ratio will be 100%. (For example: Oklahoma Adjusted
Gross Income is negative $500 and the Federal Adjusted Gross Income is negative
$1,000 the ratio is 100%).
Added at 19 Ok Reg
2433, eff 6-27-02; Amended at 23 Ok Reg 2824, eff
6-25-06
