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In the state of Ohio can I deduct gambling losses if they are less than my winnings on my state taxes. Like you can federal

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December 29, 2024
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Best answer by Hal_Al

Q. In the state of Ohio can I deduct gambling losses if they are less than my winnings on my state taxes.

A. No.

Essentially, Ohio does not have "Itemized" deductions, like the federal return. There are some deductions on the Ohio Schedule of Adjustments. Everybody gets them (unlike federal, you do not have to choose between standard and itemized). Gambling losses is not one of them. The Ohio equivalent to the Federal "Standard Deduction" is the "Exemption" amount (line 4 on form 1040). Everybody gets both the exemption amount and any deductions, they are eligible for, on the schedule of adjustments.

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Hal_AlAnswer

Q. In the state of Ohio can I deduct gambling losses if they are less than my winnings on my state taxes.

A. No.

Essentially, Ohio does not have "Itemized" deductions, like the federal return. There are some deductions on the Ohio Schedule of Adjustments. Everybody gets them (unlike federal, you do not have to choose between standard and itemized). Gambling losses is not one of them. The Ohio equivalent to the Federal "Standard Deduction" is the "Exemption" amount (line 4 on form 1040). Everybody gets both the exemption amount and any deductions, they are eligible for, on the schedule of adjustments.

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Tuckermank03Author

Ok thank you for your reply!

On Ohios website I just found "Ohio’s income tax calculation begins with federal adjusted gross income. Federal itemized deductions are taken on federal Schedule A after the computation of federal adjusted gross income. Some common examples of federal itemized deductions include: gambling losses, real property taxes, mortgage interest, and casualty and theft losses."

So would this mean Ohios income tax starts after all of my federal deductions? Which meaning gambling losses would be calculated into my federal adjusted gross income? I appreciate your help

Hal_Al

Q. So, would this mean Ohio's income tax starts after all of my federal deductions?

A. No.

Q. So would this mean Ohio's income tax starts after all of my federal deductions?

A. No.

Q. Which meaning gambling losses would be calculated into my federal adjusted gross income (AGI)?

A. No.

Gambling losses and other itemized (or standard) deductions are subtracted on line 12 of federal form 1040, after AGI (line 11 of form 1040) to determine your taxable income on line 15.

It appears that the wording you quote from the Ohio Dept. of Taxation (ODT) actually comes from an FAQ that explains just the opposite, that you do not get any federal deductions on the Ohio return.

FAQ 17. "Can I deduct my federal itemized deductions on the Ohio income tax return?"

"No. Ohio’s income tax calculation begins with federal adjusted gross income. Federal itemized deductions are taken on federal Schedule A after the computation of federal adjusted gross income. Some common examples of federal itemized deductions include: gambling losses, real property taxes, mortgage interest, and casualty and theft losses.

If Ohio law does not have a corresponding state tax deduction for a federal itemized deduction, the amounts are not deductible on your Ohio IT 1040. Ohio’s deductions in calculating Ohio adjusted gross income are listed on Ohio Schedule of Adjustments.

Example: Traci loses $50,000 due to a Ponzi scheme. She is able to deduct the theft loss on her federal Schedule A. However, since the deduction is not included in her federal adjusted gross income, and Ohio does not provide a deduction for theft losses, Traci is not entitled to deduct the theft loss in computing her Ohio tax liability.

See R.C. 5747.01(A)."

Reference: https://tax.ohio.gov/help-center/faqs/income-general-information/income-general-information

Click on the down arrow at question 17