Should i be paying Arkansas gambling income when it was from gambling on indian resorvation in Oklahome

[jwill1229]

my question has not been answered

[MaryK1]

If you are an Arkansas resident, you will be taxed on the gambling income, but you should get a credit for the tax you paid to Oklahoma.

[jwill1229]

i am a resident of Arkasaas BUT won gambling in Oklahoma Indian reservation   why should I pay Arkansas....

[RBBrittain]

As your resident state, Arkansas is entitled to tax ALL your income wherever you earned it; that includes casinos in every state (not just Oklahoma, Indian or otherwise), though there used to be an exception for "electronic games of skill" at Oaklawn & Southland (not sure if that survived their conversion to full-blown casinos in 2019).

The state where the casino is located (in this case OK) is ALSO entitled to tax your winnings; if it's an ordinary income tax (it is in OK), you can claim a credit for that on your AR return. (Mississippi has a special tax on casino winnings in lieu of state income tax; that is NOT eligible for the AR credit.)

[BillM223]

Both responses are correct that you declare gambling winnings as income to Arkansas even if they are won in a casino in Oklahoma, and that you get credit on your Arkansas return for the taxes you paid to Oklahoma on the same gambling income.

You can read the Arkansas instructions and stance on gambling income at the Arkansas Department of Finance and Administration's website here on Subject 208. For tax year 2019, the income is entered on Form AR-OI on line 4, which carries to Form AR1000F on line 22.

Also, be sure to enter your Oklahoma information before Arkansas. That way, when you do your Arkansas interview, TurboTax will already have calculated the Oklahoma tax and can apply it as a credit in Arkansas.

[tazzdevil90]

As of July 1, 2019 Southland and Oaklawn are now both classified as casinos.  Any winnings from electronic games of skill (slot machines) is now subject to tax.  From Jan 1 to Jun 30, 2019 you do not have to claim the income from winnings nor can you claim the withholding.  However, from July 1 to Dec 31, 2019 the income from winnings has to be claimed and the withholding can now be claimed.  If claiming the income and withholdings be sure to attach the W-2G's to show when the winnings were received.

[LeonardS]

Yes, "...Gambling winnings are fully taxable and must be reported on your tax return as “Miscellaneous Income”. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos, as well as the fair market value of prizes such as cars and trips."  Ref:  Arkansas Dept of Finance and Administration Gambling Income and Expenses