When entering your Form W-2G in the OLT (Online Taxes) software, you should select the state where you won the gambling winnings, not the state where you currently live.
Why the State of Winnings Matters
- Form W-2G is issued by the payer (such as a casino or racetrack) based on the location where the winning transaction occurred.
- The state tax information (Boxes 13–15) on Form W-2G is intended for reporting to the state where the winnings were paid, not your state of residence.
- According to IRS instructions, Box 13 requires you to enter the abbreviated name of the state and your state identification number assigned by that state. This is for the state where the gambling occurred.
OLT Software Guidance
When using OLT’s software to enter your W-2G:
- Navigate to the Federal section under Income.
- Select "Show more" near Other Income, then choose "Add or Edit" next to Gambling Winnings, W2-G, Gambling Losses.
- Follow on-screen prompts to enter details, including the state where the winnings were received.
Important Notes
- Boxes 13–18 on Form W-2G are for state and local tax reporting convenience and are not required for IRS filing.
- If you are required to file a state tax return, you may need to report winnings based on your state of residence, but the W-2G form itself reflects the state of the winning event.
- The payer (casino, racetrack, etc.) is responsible for withholding and reporting based on the location of the win.
Source:
Form W-2G Instructions
Disclaimer: Always verify details with the official IRS Form W-2G instructions and your state’s Department of Revenue. For complex situations, consult a CPA or tax professional.