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Returning Member
posted Feb 23, 2025 11:08:29 AM

Confused about multi-state W2G filings

I live in NC but have gambled at new VA casino over the past 2+ years.  Turbotax Home and Business does not prompt me to file a non-resident return in VA.  I downloaded the VA state (as well as NC state) and it still doesn't prompt me to file anything for VA.  I see some answers here saying it needs to be done but Turbotax is not making it obvious.  I have a lot of W2G wins but I always lose way more than I win.  I want to get this right and not double pay to multiple states or get called out later for doing it wrong.

Thanks in advance

0 3 1929
3 Replies
Expert Alumni
Feb 23, 2025 1:29:16 PM

TurboTax asks if you made money in any other states, which is where you can enter your other state (it is embedded in the Personal Info section).  TurboTax also asks if you had state withholding that is indicated on any of the forms (W2, 1099 etc).  

 

 

Virginia requires you to file a nonresident tax return if you Virginia adjusted gross income is $11,950 if Single or married filing separately or $23,900 if Married filing jointly.  

Your gambling losses are an Itemized Deduction so you will only reduce your gambling winnings if you itemize.  Virginia allows itemized deductions if you itemize on the federal return.

 

After you complete your Virginia return, you can apply any taxes paid to Virginia to your North Carolina resident return as a credit.  

Returning Member
Feb 24, 2025 7:54:48 PM

Thanks for the quick reply.  NC does not currently allow gambling losses to offset W2G wins,   I don't know if VA allows that.  Which State would I pay the state tax to and which one would I claim the credit paid to the other state?

Expert Alumni
Mar 2, 2025 12:40:41 PM

You will pay the tax to Virginia, then receive a credit against your NC resident state taxes for the taxes paid to Virginia.  The income is reported to both states, and the credit helps to adjust the resident state return so that you do not pay double.