# Out of state tax question

**URL:** https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025
**Category:** Blaine County, OK
**Created:** [April 13, 2017, 9:48pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025 "2017-04-13T21:48:46Z")
**Posts on this page:** 10
**Page:** 1

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### Author: ![Tim\_Ross](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/tim_ross/32/20451_2.png) [@Tim\_Ross](https://www.mineralrightsforum.com/u/Tim_Ross)
#### Post date: [April 13, 2017, 9:48pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/1 "2017-04-13T21:48:46Z")

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I live in California and hold rights in Blaine County. My wife and I signed a lease and received a lease bonus last summer. As this is the first year that we have had to deal with this we do not know where the tax liabilities lie. Do we have to claim and pay taxes on a Lease bonus in both states? I know the question is late, so any insight would be greatly appreciated.

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### Author: ![JOHN\_MORAN](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/john_moran/32/11423_2.png) [@JOHN\_MORAN](https://www.mineralrightsforum.com/u/JOHN_MORAN)
#### Post date: [April 13, 2017, 10:34pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/2 "2017-04-13T22:34:16Z")

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For years we would get tax info from the oil company (Conoco at the time), and you have to report it on your Federal and state return (we are also in CA), and you report the tax paid. Since we are CA residents I’d also file in OK to get the taxes refunded. In our case I finally gave up on filing in OK since the tax refund was not worth the trouble. If the OK withholding is worth it then you should probably file in OK. It’s not a big deal as you file as non-resident.

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### Author: ![kendall\_wiley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/kendall_wiley/32/317_2.png) [@kendall\_wiley](https://www.mineralrightsforum.com/u/kendall_wiley)
#### Post date: [April 13, 2017, 10:44pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/3 "2017-04-13T22:44:05Z")

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I live in Texas but it becomes income and in turn will affect your tax bracket and percentage which you pay, not pretty if you got a nice bonus and have to give a chunk to the IRS.

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### Author: ![Tim\_Ross](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/tim_ross/32/20451_2.png) [@Tim\_Ross](https://www.mineralrightsforum.com/u/Tim_Ross)
#### Post date: [April 13, 2017, 10:50pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/4 "2017-04-13T22:50:32Z")

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I haven’t received any royalties yet, just the lease bonus. No taxes were paid up front, so I’m just trying to figure out if I need to file non-resident in OK to pay taxes there. TurboTax asked me if I needed to file in another state rather than telling me if I should and I was confused. So, I guess the question is then, is there tax liability in OK for a lease award as opposed to a royalty?

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### Author: ![Tim\_Ross](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/tim_ross/32/20451_2.png) [@Tim\_Ross](https://www.mineralrightsforum.com/u/Tim_Ross)
#### Post date: [April 13, 2017, 10:50pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/5 "2017-04-13T22:50:57Z")

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Yeah, I have already seen that from a federal standpoint…

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### Author: ![JOHN\_MORAN](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/john_moran/32/11423_2.png) [@JOHN\_MORAN](https://www.mineralrightsforum.com/u/JOHN_MORAN)
#### Post date: [April 13, 2017, 11:24pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/6 "2017-04-13T23:24:30Z")

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If you use TurboTax you’ll have to pay for the OK forms. I’d suggest that you just download the Oklahoma non-resident form from their website, the form is very simple, go through it, do the math based on the forms that you got from the oil company (probably a 1099-MISC or similar form), or whomever paid you the bonus. If no taxes were deducted then go ahead and fill in the OK tax form (511 NR) to see if you have to pay them any tax. Ours was withheld by the oil company so we never had to pay or file unless we wanted to get a tax refund. Hope that helps, here is the OK tax website [www.ok.gov/tax/Forms\_&\_Publications/Forms/Income](http://www.ok.gov/tax/Forms_&_Publications/Forms/Income)

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### Author: ![Tim\_Ross](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/tim_ross/32/20451_2.png) [@Tim\_Ross](https://www.mineralrightsforum.com/u/Tim_Ross)
#### Post date: [April 13, 2017, 11:36pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/7 "2017-04-13T23:36:15Z")

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Thanks John!

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### Author: ![Stephen\_Weeks](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/b9e5f3/32.png) [@Stephen\_Weeks](https://www.mineralrightsforum.com/u/Stephen_Weeks)
#### Post date: [April 14, 2017, 3:31pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/8 "2017-04-14T15:31:24Z")

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Make certain that everyone paying you has a W-9 which they will request. The operator or other paying company will request a W-9 when they send you a division order.

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### Author: ![Tim\_Ross](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/tim_ross/32/20451_2.png) [@Tim\_Ross](https://www.mineralrightsforum.com/u/Tim_Ross)
#### Post date: [April 18, 2017, 6:06pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/9 "2017-04-18T18:06:32Z")

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Thanks Stephen. The leasing company has that information but we haven’t received anything from an operator since I do not believe that there is anything solid in the works yet.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 10:31pm UTC](https://www.mineralrightsforum.com/t/out-of-state-tax-question/3025/10 "2018-08-14T22:31:59Z")

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