Payments the Department of Defense makes because a service member was killed in action in a designated combat zone are exempt from Oklahoma income tax for the tax year in which they were killed. The exemption also covers the income a surviving spouse earned in that same tax year.
There is nothing to apply for. Leave the Department of Defense death payments, and the surviving spouse's income for that tax year, out of the income reported on the Oklahoma return.
The report of casualty or death certificate, and documentation of the Department of Defense payments.
