DanielV01
Expert Alumni

Get your taxes done using TurboTax

It depends.  In reality, Ohio will not tax all of your income, but it does factor it in in determining how much tax you must pay.  

For instance, if you earned 45,000 in earnings, and 5,000 at the casino, Ohio will figure out how much tax you would pay on your total income, and then determine your tax liability proportionate to the amount of income received from Ohio sources.  Let's say, then, that your Ohio tax on 50,000 is 1,000.  Your Ohio tax on your casino earnings will be $100, which is 10% of your overall earnings.  

You are also taxed on this income in your resident state (gambling is not covered by reciprocal agreements that Ohio has with numerous neighboring states), so you will fill out the nonresident Ohio return first, and then your state's resident return, who will give you a credit for the taxes you must pay to Ohio on that casino income.  

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