Without knowing the states involved, the general rule is that some states will require you to claim the gambling winnings in the state where they were won. Most states tax all income earned in their state, regardless of your residency. In addition, your resident state will require you to report the winnings, but will offer a credit or deduction for the taxes already paid to a non-resident state. Turbo Tax will handle all this for you.
If you received a W-2G for your winnings, a copy was also sent to
the state in which the money was won, so they will be expecting you to
file a non-resident state return, if
you meet their minimum requirement for filing. Boxes 13-18 on your W-2G will indicate which state (and city) the winnings were reported to.
In the Personal Info section of Turbo Tax, you will indicate you made money in a state other than your resident state. Later, when you enter state information from the W-2G (or winnings, if no W-2G was received), it will generate a non-resident state return, if one is required.
The IRS and most states allow the
deduction of gaming losses. Be sure to include any losses on your tax return, as they can be used as an itemized deduction (if you itemize) to offset some of your winnings.
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