topic Gambling Winnings in State tax filing

Gambling Winnings

rcsano9 — Fri, 20 Mar 2020 15:21:36 GMT

I am a full-year PA resident with gambling winnings in the State of OH. How do I claim these on state taxes? OH tax was withheld when I won.

Do I need to pay any tax on this in PA?
Do I need to file for a refund from OH to pay PA tax?

Not sure what to do for this.

Re: Gambling Winnings

Irene2805 — Fri, 20 Mar 2020 15:48:56 GMT

You have to file the following returns:

OH nonresident return - since the money was won in OH; and
PA resident return - As a PA resident, you must also include gambling and lottery winnings from other states and countries.

Prepare the nonresident state return first (OH) so the information flows property to the PA return. You should get a credit on your PA return for taxes paid to other states.

Re: Gambling Winnings

rcsano9 — Mon, 23 Mar 2020 14:16:07 GMT

I am just showing a large refund from Ohio, and owing PA. Just want to be sure it is right.

Re: Gambling Winnings

BillM223 — Mon, 23 Mar 2020 14:37:48 GMT

It is likely that the casino or other entity which gave you the gambling winnings had a hefty amount withheld when they gave your winnings. Since your gambling winnings are your only Ohio income, I am not surprised that you have a large refund from Ohio (of course, I am speculating on this sight unseen).

And as Irene said, any tax that you paid on the Ohio winnings (the tax assessed, not the tax withheld) will be a credit on your Pennsylvania return, which is how most states avoid the issue of double-taxation.