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You will have to pay state income tax on your winnings in 39 states. If you live in one of the 11 states that don’t tax sweepstakes prizes, you may be spared state income taxes. There are certain instances where a W-2G is issued for other gambling winnings of $600 or more. Losses are allowed as an itemized deduction dollar for dollar against the gain. Gambling losses cannot be greater than gambling wins for the tax year. Example: John wins $23,500 during the year playing slots and other casino games. The winnings were reported, but the tax return claimed gambling losses of $65,000. The IRS decided that $65,000 was a lot to lose, and it sent an agent to conduct an audit. The tax preparer found a man with an extremely large collection of losing lottery tickets and made a deal: he would borrow 200,000 losing tickets for a month for $500. Your lottery winnings may also be subject to state income tax. But we live in Texas – so no tax right? Oklahoma requires that a non-resident of Oklahoma file a 511NR Income Tax Form if he/she has Oklahoma source gross income of $1,000 or more. You might then ask are gambling winnings considered “Oklahoma source gross income”?

Dale Denwalt

I won $4000 at a Indiana casino slot(2007).I live in ohio.The casino took out Ind. Tax state only.Should I still fill out a Ind. State tax form.Also would I be able to claim my losses against.

Oklahoma Tax On Casino Winnings

A number of state tax rate hikes went into effect Sunday to raise more than $400 million for teacher salaries and other priorities identified by lawmakers in a special session that adjourned in March.

An increase in motor fuel taxes will affect travelers in time for the July 4 holiday. Drivers have begun paying an extra 3 cents on a gallon of gasoline and 6 cents on diesel fuel.

Overall, the new fuel tax rates are expected to bring in $105 million during the budget year that began July 1. It will be deposited into the state's general revenue fund, which allowed lawmakers to make appropriations based on collections that are expected over the next 12 months.

Oklahoma Tax Rate On Casino Winnings Winning

The legislation adopted in special session, House Bill 1010xx, also increased gross production tax rates. Oklahoma's previous rate on oil and gas production allowed new wells to operate at a 2-percent rate for the first three years of production. Now, those wells and new ones beginning production will be taxed at 5 percent.

After 36 months of production, they will be taxed at 7 percent, according to state law.

The change is expected to raise an estimated $100 million from oil production and another $71 million in collections from natural gas.

Lawmakers tried for months to reach a deal on increasing tax rates to pay for a teacher salary increase. One of the most contentious issues centered on the tax levied against cigarettes. Democrats previously opposed raising the cigarette tax rate as a standalone measure, but only agreed to support legislation when it was bundled with the gross production tax increase approved in March.

As of Sunday, cigarettes are now taxed an additional $1 per pack. It could raise $152 million over the next year. Lawmakers also raised the cost of 'little cigars' to match the tax rate of cigarettes.

The tax hikes were the result of months of negotiation and political squabbling that triggered two special sessions. Legislators met in the spring under the specter of a teacher walkout, but adopted the tax increases and a teacher pay raise just days before thousands of educators descended on the Capitol.

With all the new revenue combined with an uptick in the state economy, Oklahoma's budget swelled to a record-high $7.5 billion. Lawmakers will return to the Capitol in February to begin working on next fiscal year's appropriation bill.

California Tax On Casino Winnings

Tax increases effective July 1

• Gasoline: 3 cents

• Diesel: 6 cents

• Oil/gas production: From 2 percent to 5 percent for the first 36 months of operation

• Cigarettes: $1 per pack

Irs Tax On Casino Winnings

Dale Denwalt has closely followed state policy and politics since his first internship as an Oklahoma Capitol reporter in 2006. He graduated from Northeastern State University in his hometown of Tahlequah. Denwalt worked as a news reporter in... Read more ›