West Virginia Tax Division Issues Updated Guidance on Gambling Withholding, Loss Deductions

The West Virginia Tax Division has provided updated guidance on gambling withholding requirements and gambling loss deductions. The guidance requires 4.58 percent backup withholding on gambling winnings when federal backup withholding applies and generally applies to winnings of at least $600 that are at least 300 times the wager, as well as specified thresholds for certain gambling activities. The publication also explains that taxpayers may claim a decreasing modification for West Virginia gambling losses against gambling income if properly documented. [W. Va. Tax Div., TSD 432, 04/13/26]

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