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Level 1
posted Feb 5, 2024 9:01:04 AM

Why does turbo tax make me file a West Virginia return for a W-2G from slot machine winnings if the state does not collect tax on the winnings?

I have never been required to file in past years for a W-2G. Winnings are taxed by federal not state.

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1 Best answer
Expert Alumni
Feb 7, 2024 5:05:00 PM

If you answered the interview question "yes" as to whether you made money in another state, TurboTax will advise you that you may need to file a return for that state.

 

Per the West Virginia individual tax return instructions for 2023:

 

The West Virginia source income of a nonresident is derived from the following sources included in your federal adjusted gross income: 

 

  • Real or tangible personal property located in West Virginia;
  • Employee services performed in West Virginia;
  • A business, trade, profession, or occupation conducted in West Virginia;
  • An S corporation in which you are a shareholder;
  • Your distributive share of West Virginia partnership income or gain;
  • Your share of West Virginia estate or trust income or gain and royalty income;
  • West Virginia Unemployment Compensation benefits;
  • Prizes awarded by the West Virginia State Lottery.

 

West Virginia source income of a nonresident does not include the following income even if it was included in your federal adjusted gross income: 

 

  • Annuities and pensions;
  • Interest, dividends or gains from the sale or exchange of intangible personal property unless they are part of the income you received from conducting a business, trade, profession, or occupation in West Virginia;
  • Gambling winnings, other than prizes awarded by the West Virginia State Lottery as described above, unless you are engaged in the business of gambling (file a Schedule C related to gambling activity for federal income tax purposes) and you engage in that business, trade, profession, or occupation in West Virginia.

 

Even though you may not be required to file a return, if you had state income taxes withheld on your gambling winnings, you may want to file a West Virginia return to see if you are eligible for a refund. 

 

If that is the only income you received from West Virginia, there were no taxes withheld on the winnings, and you are not in the business of gambling, then you can simply delete the WV state return.  

3 Replies
Level 15
Feb 5, 2024 9:04:03 AM

In the My Info section of the program when entering your personal information, did you indicate that you made money in another state and selected West Virginia as that state?

 

On the W-2G that you entered did you leave boxes 13, 14 and 15 blank (empty) ?

Level 1
Feb 7, 2024 4:14:53 AM

Yes I did check make money in another State. Yes 13 14 15  are left blank. I am also not a resident of that state. 

Expert Alumni
Feb 7, 2024 5:05:00 PM

If you answered the interview question "yes" as to whether you made money in another state, TurboTax will advise you that you may need to file a return for that state.

 

Per the West Virginia individual tax return instructions for 2023:

 

The West Virginia source income of a nonresident is derived from the following sources included in your federal adjusted gross income: 

 

  • Real or tangible personal property located in West Virginia;
  • Employee services performed in West Virginia;
  • A business, trade, profession, or occupation conducted in West Virginia;
  • An S corporation in which you are a shareholder;
  • Your distributive share of West Virginia partnership income or gain;
  • Your share of West Virginia estate or trust income or gain and royalty income;
  • West Virginia Unemployment Compensation benefits;
  • Prizes awarded by the West Virginia State Lottery.

 

West Virginia source income of a nonresident does not include the following income even if it was included in your federal adjusted gross income: 

 

  • Annuities and pensions;
  • Interest, dividends or gains from the sale or exchange of intangible personal property unless they are part of the income you received from conducting a business, trade, profession, or occupation in West Virginia;
  • Gambling winnings, other than prizes awarded by the West Virginia State Lottery as described above, unless you are engaged in the business of gambling (file a Schedule C related to gambling activity for federal income tax purposes) and you engage in that business, trade, profession, or occupation in West Virginia.

 

Even though you may not be required to file a return, if you had state income taxes withheld on your gambling winnings, you may want to file a West Virginia return to see if you are eligible for a refund. 

 

If that is the only income you received from West Virginia, there were no taxes withheld on the winnings, and you are not in the business of gambling, then you can simply delete the WV state return.