When entering your W-2G on Online Tax Longhorn (OLT), you should select the state where the income was actually won rather than the state where you reside. This distinction matters because some states mandate that gambling winnings be reported both in the state where they occurred and in the state of residency. It’s advisable to check with your state Department of Revenue to determine whether you need to file separate state returns due to this requirement.
For example, if you win money through gambling activities conducted in California but live in Oregon, you would initially indicate California as the location of the winnings on your OLT system. Afterward, consult California's regulations regarding out-of-state gamblers to ensure compliance with potential dual-reporting requirements.
Remember, Box 13 on Form W-2G captures the state abbreviation and ID number associated with where the winnings took place, ensuring accurate recordkeeping for possible state-specific obligations.
Details of Relevant Explanations:
- Form Used: Form W-2G
- Relevant Boxes: Box 13 indicates the state where winnings occur; Box 15 shows any state taxes withheld.
- Filing Consideration: Check with your resident state about declaring these earnings alongside those earned elsewhere.
Source: IRS Publications