This bill amends Section 2358 of Title 68 of the Oklahoma Statutes to introduce an exemption for certain retirement income amounts, thereby altering the calculation of taxable income for individuals receiving such income. The bill aims to refine the existing framework for determining taxable income and adjusted gross income by ensuring that specific retirement income is excluded from taxable calculations. Additionally, it includes technical adjustments to the tax code, clarifying the treatment of interest income, federal net operating loss deductions, and income allocation from various property types, all intended to streamline the tax calculation process.

Moreover, the bill proposes various adjustments to the Oklahoma income tax code, particularly concerning standard deductions and exemptions for different taxpayer categories. It establishes specific amounts for standard deductions based on filing status for taxable years 2008 through 2016, with increases for subsequent years. Notably, it introduces a new exemption for retirement benefits starting in 2026, raising the limit to $20,000, and specifies that Social Security benefits and certain retirement benefits will be exempt from taxable income. The bill also includes provisions for military personnel, deductions for federal income taxes paid, and contributions to college savings plans, ultimately aiming to provide tax relief and clarity for individuals and families in Oklahoma, especially retirees and military service members.

Statutes affected:
Introduced: 68-2358