I live in Texas and won money at casino in Oklahoma, I've already entered the w2g required on my federal taxes, but do I owe state taxes in Oklahoma? If so, would I fill out a state return for Oklahoma?

[jf3]

In addition to the above information, I did a test within Turbo Tax using the exact same method to produce the tax matching the 2-D form I did manually in a PDF file.  

I changed my income to something higher while leaving all else that gets transferred to the Oklahoma form the same.  

Guess what it did?  The tax for Oklahoma went UP!  That's right...I changed nothing but my own job income in Turbo Tax, and the amount of Oklahoma tax due WENT UP!  

It actually went up higher than the tax that corresponds to the income level indicated by the amount of theoretical gambling winnings!  Definitely will speak to a lawyer about this!  That cannot be legal!

[FanDeLaU]

FYI, here are the rates for single and joint filing respectively...

https://www.ok.gov/tax/Individuals/Income_Tax/Filing_Information/General_Information/Single_Taxpayer...

https://www.ok.gov/tax/Individuals/Income_Tax/Filing_Information/General_Information/Joint_Filing_Hu...

[oklahomaCHEATStaxpayers]

In 2018, only after my TAX PREPARER  OF 5 YEARS had completed my FEDERAL AND STATE RETURNS BOTH... & I had paid ALL TAXES MY PREPARER DOCUMENTS SHOWED OWED.

Months later.... after OKLAHOMA received their STATE TAX from me PAID IN FULL... 

   as documents of TAX PREOARER SHOWED OWED.

OKLAHOMA SENT ME A NOTICE.

  Oklahoma wanted more money.

MY OKLAHOMA TAX WAS SOLELY CASINO WINS. 

I PHONED OKLAHOMA TAX COMMISSION. I asked DID YOU RECEIVE MY PAYMENT FOR MY FEDERAL TAXES?

  Rep said "Yes."

I said than your agency sent me in error A NOTICE OF OWING OKLAHOMA MORE TAX. 

  Rep paused so long I had to ask "Are you still on phone?" 

Rep repiled "I'm trying to see why we would send you such a notice. You paid your tax." Than asked me to hold.

Came back. Rep tells me OKLAHOMA WANTED ME TO PAY THEM AT THE TIME I WON THE CASINO WIN, IN THAT QUARTER. 

I said, THAT IS RIDICULOUS!!

 I DON'T OWE TAXES UNTIL END OF YEAR ON CASINO WINS. I PAID WHAT PREPARER DOCS SHOWED OWED. NOW OKLAHOMA SUDDENLY WANTS MORE MONEY, AND SOMEHOW FOR ME TO HAVE MAGICALLY KNOWN OKLAHOMA WOULD WANT THAT MONEY INSTEAD OF SENDING OUT A "TAX DECLARATION" OF OKLAHOMA CHARGING CASINO WINNERS INTEREST IF DONT PAY IN QUARTER THEY WIN... SMELLS... REEKS OF CORRUPTION!!

I WILL TALK TO MY TAX PREPARER. 

  & I DID.

MY TAX PREPARER LOOKED OVER MY RETURNS, STATED I OWED EXACTLY WHAT THEY PREPARED IN FEB 2018 ON MY 2017 WINS... I DONT OWE OKLAHOMA ANYTHING MORE. JUST IGNORE THEM. 

I DID. I IGNORED OKLAHOMA TRYING TO SHAKE ME DOWN FOR MORE MONEY.

TODAY... NOV. 09, 2020 OKLAHOMA TAX COMMISSION USED SOME ATTORNEY OFFICE CLEARLY AS AS CORRUPT AS OKLAHOMA IS... TO ALSO ATTEMPT TO SHAKE ME DOWN FOR MORE MONEY!!

SHAMEFUL WHAT OKLAHOMA TAX COMMISSION ATTEMPTS TO DO TO OUT OF STATE PLAYERS; THEY KNOW OUR ADDRESSES, AREN'T THEY LIABLE TO MAIL US TAX CODES SHOWING US THEIR "RULES" THEY WANT US TO FOLLOW (THEY INTEND TO SHAKE DOWN CASINO WINNERS WITH INTEREST IS WHY THEY WON'T BE FULLY TRANSPARENT WITH AMERICANS WINNING AT OKLAHOMA CASINOS!!).

THEY SURE USE OUR ADDRESSES AFTER .. INTEREST IS THERE ... MMM HMMM.

THEIVES.

CORRUPT THEIVES.

[Anonymous]

we can't see your OK return or notice. 

if your winnings were large enough the casino was probably obligated to withhold OK taxes so you would have owed nothing when you filed. every state with an income tax has different rules concerning withholding on casino, lottery, racetrack, etc. winnings. 

when you got that notice you should have had your tax preparer call.  

your tax preparer was wrong saying to ignore the notice. the issue on tax notices must be resolved in your favor otherwise the state or IRS will continue to come after you.

at this point I would suggest you have your tax preparer call to find out why you owe, he may have a better understanding of what the issue is ask for a law cite and then look into it. 

you may have to pay the tax and then file a claim for refund - this is what can happen if you just ignore tax notices - I'm not saying OK is correct.  

that collection agency will continue to come after you. they can levy your bank account,  garnish your wages, put a lien on real estate that you might own, and more.  

do nothing more at your own risk. 

and I'm not sure what OK is saying about that "FEDERAL" payment that it said it received. OK is not the IRS and the IRS is not OK. so any federal payment should have gone to the IRS and the state payment to OK. if you sent the state payment to the IRS the check may have been destroyed and never got to OK. but can't be sure. you should research your records to see what happened to that payment and if the check cleared get a copy of the front and back. your tax preparer will need this if you have him call. until you can clear this issue in your favor, OK penalties and interest will continue to accumulate.    

by the way did you have an OK tax liability in 201. I ask because to avoid withholding and/or estimated tax payments you must timely pay in 70% of 2018 tax or 100% of 2017 tax.  so if you had no tax liability in 2017 no payments were required.  also no payments were required if your tax liability was under $1,000 for 2018

[bweddle37]

why doesn't Oklahoma casinos collect taxes from jackpots as they are earned by out of state people and why doesn't oklahoma tax commission collect their taxes instead of hiring outside firms

[Dlevans24]

Why have I never had to pay Oklahoma state taxes on my gambling winnings before this year?

[JohnW152]

You may not have had a filing requirement in prior years.  

This year, you must have reported a Form W-2G showing gambling winnings of $1,000 or more from somewhere in Oklahoma.

You don’t state as much, but, based on this thread, I’m assuming you’re a non-resident of Oklahoma, and probably haven’t had any Oklahoma income except possibly from gambling.  Lots of people cross the border into Oklahoma to do that.

However, there is a requirement to file an Oklahoma return for non-residents, when a certain income threshold is passed.

According to Who Must File – Nonresident in the 2021 Form 511-NR Oklahoma Individual Income Form for Nonresidents and Part-Year Residents Packet & I...:  

Except as otherwise provided for in the Pass-Through Entity Tax Equity Act of 2019, every nonresident with Oklahoma source gross income of $1,000 or more is required to file an Oklahoma income tax return.  A nonresident partner may elect to be included in a composite partnership return; see Rule 710:50-19-1.

Please see the instructions linked above for more information.

@Dlevans24

[Dlevans24]

Thanks for your quick response. You are correct, I liv in Texas and only go to Oklahoma to visit the casino. I done this for years but I’ve never been advised to pay Oklahoma taxes for any gambling winnings until this year. I won a significant amount in 2020 but was not advised/informed to pay Oklahoma taxes on the winnings. I did include the winnings as income on my regular taxes but still was not made aware of Oklahoma tax requirements. I’m just wondering if this could come back as an illegal activity?

[DMarkM1]

Something would need to trigger TurboTax to ask about filing an OK state tax return for gambling winnings.  It is normally one of two ways.  1.  The taxpayer enters a W2G that shows OK winnings in the state boxes.  2.  Taxpayer indicates in the "My Info" section using the "Other state income" topic that they earned money from another state.  Gambling Winnings is specifically mentioned there.   

The taxpayer would subsequently enter the gambling winnings as "not reported on a W2G" in the federal interview.  A non-resident return would be generated and the taxpayer would allocate the gambling winnings to the non-resident state for tax calculations.

If the state of OK receives data from another source that a taxpayer has earned income in OK that exceeds the reporting threshold they may contact that taxpayer for resolution. 

[BADDAY88]

I live in Texas but I have Oklahoma winning I need to file

[BADDAY88]

I know I owe taxes on these winnings that's why I'm trying to file them I got my tax return check back already but it was not for the she could not figure out how to file my winnings

[BADDAY88]

I have a lost and winning statement from the casino

[AmyC]

The losses go on the federal return, sch A. The income goes on the federal and goes to OK. The OK return begins with the federal AGI so you need to amend the federal before you do the OK.

You need to:

1. File an amended Federal return reporting the winnings and maybe the losses
   • Save a copy of the original return before doing an amended return.
   • See how to file an amended return.
   • How do I enter a W-2G?
   • How to enter gambling losses
2. File an original OK return for the winnings
3. If you will owe money - make that payment by April 18 to the IRS and state to avoid penalty or interest.
4. Follow your amend at track an amended return 

Related:

Here is a great FAQ to show the math for amended returns. 

@BADDAY88

[michelebifano]

What happened with this please.  They are now charging me outrageous amounts for 2018.    I was not aware we were supposed to pay taxes except for federal taxes?

[AmyC]

Yes, you will be charged interest and probably penalties for not filing and paying on time. It is your responsibility to determine any tax obligations when the money is received. Going forward, be aware that you may even need to pay estimated taxes for the quarter when large winnings happen. 

In law, ignorantia juris non excusat (Latin for "ignorance of the law excuses not"), or ignorantia legis neminem excusat ("ignorance of law excuses no one"), is a legal principle holding that a person who is unaware of a law may not escape liability for violating that law merely by being unaware of its content. You have no recourse except to pay the tax along with the extra fees.

@michelebifano