Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 50 - Income › Subchapter 15 - Oklahoma Taxable Income › Part 5 - OTHER ADJUSTMENTS TO INCOME › Section 710:50-15-66 - Deduction for contributions to an Oklahoma College Savings Plan

Current through Vol. 41, No. 20, July 1, 2024
(a) For tax years
				  beginning after December 31, 2001 and ending before December 31, 2004,
				  individuals may deduct up to Two Thousand Five Hundred Dollars ($2,500.00) of
				  contributions made to an Oklahoma 529 College Savings Plan Account, established
				  pursuant to the Oklahoma College Savings Act, in arriving at Oklahoma taxable
				  income. If contributions are made to more than one account, the deduction for
				  each contributor is limited to Two Thousand Five Hundred Dollars ($2,500.00)
				  for each account.
(b) Effective for
				  tax years beginning after December 31, 2004, for contributions made to an
				  Oklahoma 529 College Savings Plan (established pursuant to the Oklahoma College
				  Savings Act) a maximum of Ten Thousand Dollars ($10,000,00) may be deducted in
				  arriving at Oklahoma Taxable income [Twenty Thousand Dollars ($20,000.00) if
				  filing an income tax return using married filing joint filing
				  status].
(c) Contributions made to
				  other states' college savings plans, the Coverdell Education Savings Account,
				  or transfers from one Oklahoma College Savings Plan Account to another may not
				  be deducted.
(d) Any contribution,
				  to the extent not deducted, may be carried over as a deduction from income for
				  the succeeding five (5) years.
(e)
				  For taxable years beginning after December 31, 2005, deductions may be taken
				  for contributions and rollovers made during a taxable year and up to April
				  15th of the succeeding year, or the due date of a
				  taxpayer's state income tax return excluding extensions, whichever is later.
				  Provided a deduction for the same contribution may not be taken for two (2)
				  different taxable years.
(f) For
				  tax years beginning on or after January 1, 2007, taxpayers who elect the
				  five-year carryforward election and take a rollover or have a non-qualified
				  withdrawal during the five-year carryforward period, must reduce the otherwise
				  available tax deduction by the amount which is equal to the rollover or
				  non-qualified withdrawal.
(g) For
				  tax years beginning on or after January 1, 2007, taxpayers who elect to take a
				  rollover or non-qualified withdrawal within the same tax year in which a
				  contribution was made to the taxpayer's account must reduce the otherwise
				  available tax deduction by the amount which is equal to the rollover or
				  non-qualified withdrawal.
(h) For
				  tax years beginning on or after January 1, 2007 taxpayers who elect to take a
				  rollover within one year of the date of contribution for which a deduction has
				  been taken must include the amount of the rollover in their adjusted gross
				  income the taxable year of the rollover.
(i) For tax years beginning on or after
				  January 1, 2007 taxpayers who make a non-qualified withdrawal of contributions
				  for which a deduction was taken must include the amount of the non-qualified
				  withdrawal and any earnings thereon in their adjusted gross income in the
				  taxable year of the withdrawal
(j)
Definitions.
The following words and terms, when used in this
				  Section, shall have the following meaning, unless the context clearly indicates
				  otherwise:
(1)
"Non-qualified
				  withdrawal"
means a withdrawal from an Oklahoma College Savings Plan
				  account that is not:
(A) a qualified
				  withdrawal;
(B) a withdrawal made
				  as a result of the death or disability of the designated beneficiary of an
				  account;
(C) a withdrawal that is
				  made on the account of a scholarship or the allowance or payment described in
				  Section 135(d)(1)(B) or (C) of Title 26 of the Internal Revenue Code, received
				  by the designated beneficiary to the extent the amount of the refund does not
				  exceed the amount of the scholarship, allowance, or payment; and
(D) a rollover or change of designated
				  beneficiary as permitted by subsection F of Section
				  3970.7
				  of Title 70 of Oklahoma Statutes.