Change In Oklahoma Tax Code Could Cost Some Taxpayers

A change in the Oklahoma tax code, could cost you thousands if you don't know about it.

Sean Reed with Reed's Tax Service says this could affect potentially tens of thousands of Oklahomans, who worked for the federal government before 1986 and were under the CRS retirement system.

Those like Tandye Kramer. She worked at Tinker Air Force Base for 35 years. Her husband also retired from the federal government and they were both under the CRS retirement system. But they didn't know about the change in the Oklahoma Law, until Reed figured out how much money they were missing out on.

"We got quite a bit of money back," said Kramer.

Here's why: In the past, Oklahoma only allowed a $10,000 exclusion on retirement income and taxed the rest. But in 2006, lawmakers changed the state tax code and now after being fully phased in, none of the retirement income is subject to taxes.

"A lot of people don't know this," said Reed.

Reed says many retirees who do their own taxes, or go to a preparer unfamiliar with federal employees are missing out.

"And it's a timely issue also," says Reed. "If you owe the IRS or the State of Oklahoma you owe them forever, if the state owes you or the Fed owes you, they owe you for three years."

Tandye and her family ended up more than $4,000 richer.

"My youngest is still in college and I thought 'well, I'll use this for her tuition.'"

To get the full benefit from 2010-until 2013 you need to file by April 15.