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Does a VA resident having gambling winnings offset completely with losses have to pay West VA State taxes? For eg, I had winnings of $10,000 offset by losses of $10,000.

I did not have any West VA state taxes withheld on my W-2G's gambling winnings during 2016 and earned approx. $10K offset by $10K in gambling losses.  Am I still required to pay West VA state taxes or since my net is zero I don't have to pay anything?

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1 Reply
MichaelMc
New Member

Does a VA resident having gambling winnings offset completely with losses have to pay West VA State taxes? For eg, I had winnings of $10,000 offset by losses of $10,000.

You will most likely have a tax liability to West Virginia, as your gambling winnings and losses may result in you having net income.

All gambling winnings, including lottery tickets, must be reported as ordinary income. Gambling losses, including losing lottery tickets, are deductible but (1) only up to the amount of your winnings and (2) only if you itemize deductions.

If you claim the standard deduction, you are still obligated to report and pay tax on all winnings  during the year. However, you will not be able to deduct any of your losses.

For more information, please see this TurboTax Guide Gambling winnings and losses.

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