Why pay taxes in another state for gambling winnings

Forum|Forum|2 years ago
February 7, 2024
1 reply
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I live in Maryland. won $1600 gambling in Delaware. On my MD tax return I entered $1600 winnings and $1600 losses. Why do I have to pay for Delaware State tax as another state to file plus money that it says I owe. I do not live in Delaware. I have had winnings there before and never had to file Delaware return. Did Turbo Tax screw up? Why did I have to pay another $40 for a state when it won't allow me to take losses in Delaware. this is very confusing. Thank you

JamesG1

TurboTax appears to be treating the Delaware taxes correctly. I would have to view the previous years tax returns before I could evaluate them.

The $1,600 in gaming income was earned in Delaware.

Delaware Division of Revenue states that nonresidents must file if they receive any Delaware-source income while a Delaware nonresident. Source: The TaxBook, page DE-1

The $1,600 in gaming income is also taxed by your resident state of Maryland.

You may be able to receive a credit on your Maryland state income tax return for the taxes paid to other states. The credit is located on line 12 of the Maryland 502CR form.

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