West Virginia Tax Division Publishes Revised Gambling Withholding, Loss Deduction Guidelines

The West Virginia Tax Division published revised guidance addressing gambling withholding requirements and loss deduction procedures for West Virginia tax purposes. The guidance establishes that West Virginia requires 4.58 percent backup withholding when federal backup withholding applies, with specific thresholds including winnings of at least $2,000 that are 300 times the wager, at least $2,000 from bingo, slots, or Keno, or more than $5,000 from poker tournaments, while Form W-2G must be issued for reportable gambling winnings with proper winner identification. Taxpayers may claim a decreasing modification for West Virginia gambling losses against West Virginia gambling income, provided losses do ...