State tax filing

@jasnyder1992

Are you a resident of West Virginia?

If so, the WV gambling winnings are indeed taxable in WV. The WV instructions state that the federal income is to be brought over to the state return (which would include the gambling winnings). There can be additions and subtractions to the federal income, but the instructions for subtractions starting on page 21 don't make any reference to backing out gambling winnings.

So in accordance with the instructions, gambling winnings are taxable in WV.

Note that on page 16 of the instructions (link above), it states:

"The State of West Virginia does not recognize itemized deductions for personal income tax purposes. Consequently, itemized deductions claimed on the federal income tax return cannot be carried to the West Virginia return. Gambling losses claimed as itemized deductions on the federal income tax return cannot be deducted on the West Virginia tax return. Consequently, there is no provision in the West Virginia Code to offset gambling winnings with gambling losses." So it appears to be correct that you owe tax on the full amount and the losses are ignored.

I will note that the advice above is only for nonresidents of WV: Page 15 of the instructions above state:

"West Virginia source income of a nonresident does not include the following income even if it was included in your federal adjusted gross income:  

...

• Gambling winnings, other than prizes awarded by the West Virginia State Lottery as described above, unless you are engaged in the business of gambling (file a Schedule C related to gambling activity for federal income tax purposes) and you engage in that business, trade, profession, or occupation in West Virginia."

So, again, I ask you, are your a resident of WV? If so, you must declare the gambling winnings as income.