Oklahoma gambling losses cap?

[ginger-hassen]

Are gambling losses still capped at $17,000 in Oklahoma?

[BillM223]

There does not appear to be a cap any longer...but Oklahoma does not differ from the federal return on how gambling losses are handled. That is, gambling losses are not deductible if they exceed gambling winnings, and you have to report the losses on Schedule A, which you may or may not be able to use (because the Standard Deduction is so high).

I see in Tribal publications that bills have been proposed over the last several years to change the $17,000 cap but they all failed.

To be honest, I see no pertinent reference to gambling losses in the 511 instructions at all. So to deduct gambling losses, you have to enter them on the federal return (schedule A), which will carry down to the OK state return. There do not appear to be any specific entries for gambling winnings or losses on the 511.

As an Oklahoma CPA firm reports:

• Oklahoma generally follows federal guidelines when it comes to deducting gambling losses. You can deduct losses up to the amount of your documented gambling winnings if (and only if) you choose to itemize on your federal return.
• If you take the Standard Deduction at the federal level, you cannot claim your gambling losses on your Oklahoma return.

[ginger-hassen]

For some reason, TurboTax is calculating a huge amount owed to Oklahoma after I enter my gambling losses. I am filing a schedule A

[BillM223]

Did your gambling losses exceed your winnings? Without being able to see you OK return, I am a bit at a loss. 

Can you see your form 511? or is it just the tax summary?

What does form 511 say, or what does your tax summary say? I am interested in Schedule 511-D.

[ginger-hassen]

I created a "test" return.  I put a psuedo 1099 for $80,000 in gambling income.  Then I reported $80,000 in losses.  The Federal refund appropriately calculated $0 but the OK state shows a tax due of $2,861.

[BillM223]

Please accept my apologies. I was so intent on thinking that you asked if the $17,000 cap applied to gambling losses (which is does not) that I missed that it actually applied to ALL Itemized Deductions (except for medical and charity contributions). 

So, yes, the $17,000 cap is still in place for all Itemized Deductions, which includes gambling losses. 

Please see Line 10 Deductions in the OK instructions for 511.