Gambling Income- Could You Owe More in Taxes This Year?

Could you possibly owe more Oklahoma taxes as a result of your gambling income? Due to recently announced changes to the Oklahoma itemized deduction calculation for individuals, the method you use to track your gambling winnings and losses could result in substantially more state income tax due than in prior years.

The Problem

Beginning in 2018, Oklahoma itemized deductions, without regard to medical and charitable deductions, are now capped at $17,000. In other words, your total deductions, not including medical and charitable, cannot exceed $17,000 for Oklahoma purposes. For example, if a taxpayer has Federal itemized deductions, consisting only of gambling losses totaling $100,000, the Oklahoma itemized deduction is $17,000. The result is $83,000 of additional taxable income at the state level.