Question

Nonresident gambling winnings

Forum|Forum|6 years ago
February 5, 2020
2 replies
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VA resident, gambling winnings from WV, filed W-2G for federal tax; when filing VA, pop-up showed I may need to file nonresident WV; do I need to file WV also? and if so, do I need to purchase turbotax WV state also?

B

bwergeles

It depends. Per the West Virginia 2019 Personal Income Tax Forms & Instructions, you are required to file a West Virginia return if you were not a resident of West Virginia at any time during 2019, but your federal adjusted gross income includes income from West Virginia sources. However, gambling winnings are NOT considered West Virginia source income unless the gambling winnings are from prizes awarded by the West Virginia State Lottery or you are engaged in the business of gambling.

Even though you may not be required to file a return, if you had state income taxes withheld on your gambling winnings, you may want to file a West Virginia return to see if you are eligible for a refund.

What about Maryland

Maryland taxes gambling jackpots won by residents of other states. File a non-resident Maryland return to report your winnings.

If you live in a state with an income tax, your state will give you credit for tax paid to Maryland.

Maryland automatically withholds income tax if your winnings total more than $5,000. For a nonresident, the withholding rate is 7.00 percent.

Learn more at Gambling Winnings and Your Maryland Tax Obligations.

@Moes88

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C

cathywv1

Not true, maybe it is written that way, but for the past 2 years we have paid state taxes in both WV (residence) and MD (lottery winnings).

I called the WV tax number the first time I could not figure out how to do the paper work to only pay taxes in MD for the winnings. I did not get an answer and the way the worksheet is written, taxes needed to be paid in both states.

The amount was fairly small but the principle is wrong. If you know how to legally file in both states and pay taxes only in the state you bought the ticket I would really love to hear what I missed.