Yes. You will need to file a VA return to report your gambling winnings.
The reciprocity only applies to wages and NOT to gambling winnings.
You will need to file the VA return first as a non-resident and then file the MD resident return claiming a credit for taxes paid on the gambling winnings on your MD state return.
Multiple States
As for having both a W2 and 1099, are you talking about only gambling W2 and 1099 or for work?
If this is for gambling, then you will want to report both under Gambling winnings so that if you do itemize, that your losses can be applied to your winnings as losses are only allowed up to your winnings. Whether or not itemizing is better would depend on how much you loss and your other itemized expenses. Itemized expenses include mortgage interest, gambling losses up to winnings, charitable contributions, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.
Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your expenses.
The 2024 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $29,200
- Married Filing Separate (MFS) $14,600
- Head of Household (HOH) $21,900
- Single $14,600
Blind or over 65 and MFJ or MFS add $1,550
Single or HOH if blind or over 65 add $1,950
Standard versus Itemized Deduction
If you are asking about W2 and 1099 income from working and not gambling, your 1099 expenses are deductible as business expenses. These expenses are not itemized. So, the overall income picture would determine which way was best. Your best option is to walk through TurboTax and determine which way works best for you.
Taking Business Expense Deductions
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