Recording Taxes withheld on w2g

[Jjmanddr]

I live in oklahoma but work in kansas and i have quite a few w2g’s for gambling winnings from both states also. I know how to record the income reported on the w2g’s, but i can’t seem to properly record the amounts of all the state taxes that were withheld by the casino?  For example, i might have five w2g’s that show a total gross earnings of $10k, with net payouts totaling $8,500 and $1,500 withheld for state taxes. 

[JohnW152]

Your state withholding amounts will be entered in the TurboTax program if you'll enter the W-2G forms using this procedure in TurboTax Online:

1. Select Tax Home in the left pane
2. On the Hi, let's keep working on your taxes! screen, select the dropdown to the right of Wages & Income
3. Select Start, Pick up where you left off or Review/Edit, as appropriate
4. On the Great! We've got your income info page, select the dropdown to the right of Less Common Income
5. Select  Start or Revisit to the right of Gambling Winnings
6. If the  Whose W-2G do you want to work on? screen appears, select the taxpayer with W-2G forms, then select Continue.  If you are married and you both have W-2Gs, you'll be able to enter your spouse's information later
7. On the  Let's get the details from your W-2G screen, enter all information that appears on the form.  You'll notice that you have the opportunity to include state income tax withholding beneath State & local taxes
8. When you're done entering your information, select Continue, and continue through any subsequent screens

See the TurboTax Help article How do I enter a W-2G? for an alternate entry method.

If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.

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[Jjmanddr]

So that is the process for entering W2G information for a typical person that occasionally gambles?  What if you consistently have a large amount of winnings and claim professional gambling as a business?  The amounts of income and taxes paid from all the W2Gs are all recorded the same way?  The only difference is one would claim business losses and expenses and the other would not?

[KeshaH]

If you are a professional gambler, you would report your gambling income and related expenses on a Schedule C.

[Jjmanddr]

I understand you enter your winnings on a schedule C, but where exactly do you report the state taxes that were withheld on the W2G?  Thats should count toward taxes paid to the state just like state taxes that are withheld on a weekly paycheck.
Last year, i called turbo tax and asked this question and they told me in the business expenses section, there is a section for additional taxes and license fees paid to a local or state govt.   So, I entered all the state withholdings there. Then i get a letter from kansas saying i over reported what was paid to them by the exact amount the was withheld on w2gs. So i called them and told them to look at all the w2gs that were included in my filing. They said it was not entered properly, but they accepted it and changed something i guess. They however could not give me official tax advice and say what i should have done. 

[KeshaH]

You can report state tax withholding:

1. Once logged in to your TurboTax account and on the Tax Home page, click on Deductions & Credits and then Review/Edit or Work on other tax breaks

2, Scroll down to Estimates and other taxes paid, click Start next to Estimated tax payments

3. Click Start next to state estimated taxes paid in 2024

4. Choose Yes

5. Enter your payments