oklahoma gambling income

[Unregistered]

Someone told taxpayer that gambling winnings were not taxable to nonresident of Oklahoma for winning from gaming in Oklahoma...that there was a "loophole" to get taxpayer out of tax...anyone know the answer to this???

[jainen]

Indian tribes

Indian tribes in Oklahoma have a special provision that exempts them from withholding and W-2G's for certain kinds of wagers. I believe winnings are still taxable to the individuals, however.

[S T]

Gambling Winnings Oklahoma

Well I don't see any exclusion for a non resident, if I look at the Quickfinder All States Guide, Oklahoma Source Income, Income taxable to nonresidents includes:

income from wagering, games of chance or any other winings from sources within Oklahoma

Also went to Oklahoma Tax Commission Website and didn't find any exclusions for non residents. Non residents are required to file if gross income is $1,000 or more.

Here is the link to Oklahoma non resident filing instructions http://www.tax.ok.gov/oktax/iti2004/511NRPkt-04.pdf The taxpayer might qualify in their Resident State for a Credit for tax Paid to another state (non resident state).

Sandy

[BOB W]

Non Resident

NJ and Conn do not tax non res on their winnings, nor does NV. It seems to be a general rule "do not tax non res". It seems that OK is not following the big gambling states. Maybe that is why they are not big in gambling??????

[jainen]

different issue

Well, Nevada doesn't tax anybody so you could say the same about Alaska, Florida, South Dakota, Texas, Washington, Wyoming, New Hampshire and Tennessee. But it's a different issue, because in Oklahoma we are talking about federal tax.

[BOB W]

Federal Issue???

The original poster talked about non residents being tax in OK for their gambling winnings. There was no mention of the winnings being exempt from Federal taxation.

[jainen]

a rumor

The original post asked about a rumor, not limiting it to state tax. Indian tribes in Oklahoma have a different status than other tribes, and a part of that is an exemption from filing federal W-2G's for non-resident aliens on certain kinds of games. So the rumor is based on fact.

[ED SMITH]

non-resident aliens

The first post only said non-resident, now it has gone to non-resident aliens. Because NR aliens get a different tax treatment, perhaps they are exempted, which may have been the source of the rumor. But then you would think it would apply to all states, at least to Indian casinos

It won't be the first time some has gotten a sliver of incomplete information and mis-interpreted it.

I'm sure someone will provide the answer Sooner than later.

ED

[S T]

Non resident

Poster talked about non resident

Someone told taxpayer that gambling winnings were not taxable to nonresident of Oklahoma for winning from gaming in Oklahoma...that there was a "loophole" to get taxpayer out of tax...anyone know the answer to this???

Jainen mentionned the non resident alien or Indian tribes.

The original post asked about a rumor, not limiting it to state tax. Indian tribes in Oklahoma have a different status than other tribes, and a part of that is an exemption from filing federal W-2G's for non-resident aliens on certain kinds of games. So the rumor is based on fact.

Presumption that the poster is inquiring about Oklahoma tax, but then are they also refering to Federal?? Did we have enough information, probably not, but all tried to provide information.

Yes, that is a problem sometimes with the forums, in that not enough info is posted and as we all want to try to answer sometimes not enough facts and circumstances are provided. Therein sometimes we sill say "if" this is the case, etc. and then sometimes the replies misinterpret what the original question was.

Do we need to add disclaimers to our postings??

Sandy

[jainen]

have a good time

Well, you're only out there to have a good time. If you win you just throw it back in the pot, and all you get for the night is some free drinks and you don't pay any tax. Oklahoma Indians are something special, but still it all looks the same from the tables.