turbo tax incorrectly recording amount from federal return to a state return. How to correct this?

[dmcnande]

gambling winnings are recorded as gambling winnings and taxable income thereby doubling my tax on the state return.

[CesarJ]

Gambling winnings are taxable income. You can deduct your gambling losses only to the extent you have gambling winnings. Maybe revisit the gambling income section and make sure you have entered the winnings and losses correctly.

Here's where you enter Form W-2G (Certain Gambling Winnings) in TurboTax:

1. Locate the W-2G section:
   • TurboTax Online/Mobile: Go to W-2G under Wages & Income.
   • TurboTax Desktop:
     • Go to Federal Taxes.
     • Go to Wages & Income.
     • If asked, How do you want to enter your income?, select I'll choose what I work on.
     • Under Less Common Income, select Start or Update next to Prizes, Awards, and Gambling Winnings.
2. Answer Yes on the Did you win money or other prizes in 2025? screen and follow the instructions to enter your W-2G.

After you've finished entering all of your gambling winnings, we'll ask about any losses you may have had. Losses can be deducted up to the amount you reported winning, but only if you itemize.

[dmcnande]

Thanks for your response.  The problem is that on the Oklahoma tax return, the gambling winnings amount was recorded on the correct line and in the correct column.  The exact same amount was also included on a line called taxable income and in the Oklahoma column, thereby doubling my income made in Oklahoma and doubling the tax liability.  I have checked my federal return and cannot find where gambling winnings are also called taxable income. I wonder if amending my Oklahoma return would afford any opportunity to delete the taxable income line? I will appreciate any further help you can provide. Thanks, Dan  

[AmyC]

It definitely sounds wrong but in the opposite manner. I am concerned your full income is not showing for the calculations. If it is your gambling income doubling, go back through the OK program and see if you marked an amount to be taxable in one of the several places you have an opportunity to enter information. 

OK is among the majority of states that tax a nonresident or part-year resident using apportionment/ allocating the tax. The full income from everywhere is reported.

1. OK will look at your total family income for the year and determine the tax on that amount. 
2. Then, they look at what percentage of the income was actually from OK.
3. OK multiplies the percentage of OK income times the OK tax.

For example:

• OK tax on your federal income is $8,000
• But only 10% of your income was earned in OK
• OK tax liability will be 10% of $8,000 or $800.

 Let me get you to preview your return and check.

• If you are using the online version:
  1. go to Tax Tools,
  2. then select Tools,
  3. select View Tax Summary,
  4. on the left side, select Preview My 1040.
• In the desktop program, switch to forms mode.

Take a look at the 511NR:

Line 6 is OK source income - your gambling winnings

Line 7 is all income earned

Line 9 is income after adjustments - probably all of your income earned everywhere

Line 13 taxable income after OK deductions and exemptions

Line 14 tax on line 13 income

Line 17 shows OK amount and federal amount create your OK percentage of income

Line 18 is the OK percentage times OK tax