State Tax Returns – Lousiana and Oklahoma Gambling Only�(Plus, OK Oil and Gas Royalties)

TY 2025

UPDATED 29 Jan 2026 w/ LA tax changes

A slot machine in the corner indicates the slide has changed

Agenda

1. Scope for doing LA and OK State Taxes in TX3 D5
2. Tax Law
3. Preparing the State return in TaxSlayer
4. Get certified

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1) New scope for TY 2025

• Non-Resident only
• Clients live in Texas the whole year and have no domicile in Louisiana or Oklahoma
• Gambling Winnings only (W-2G, 1099-MISC, self-reported)
• Royalties from nonworking mineral interest (gas and oil) allowed for Oklahoma.

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State tax returns are limited to LA and OK gambling. And, Oil and Gas royalties for OK

What is required

• Federal tax returns require all gambling winnings to be reported.
• LA and OK require all state gambling winnings to be reported, even if Indian Reservation. State withholding may or may not be on the form
• LA – Nonresident must file a LA return if you have LA income and are required to file a Federal return. Deadline May 15^th.
• OK – Nonresident must file an OK return if OK sourced income is >$1000. Deadline April 15^th.

2) Tax Law

• You don’t need to understand the tax details. These are provided in case you want to understand and/or need to explain to your client
• Every State return will show a Federal AGI, a State AGI, the Prorate Percentage and the State Income Tax. State taxes are rarely $0. for LA are $0 for Single/MFS below $12,500 and MFJ/HoH/QSS below $25,000
• Gambling losses are not allowed in LA by law, even if you itemized your federal return
• Gambling losses are OOS for OK as it requires doing itemized deductions on the OK tax return
• State income is the same as federally reported income. Just like Federal law, you can reduce the winnings on an occurrence-by-occurrence basis by the cost of the event (e.g., won $100 on Lottery ticket, paid $5 for lottery ticket…therefore, gambling income $95).

Basic Formula for Non-Resident LA and OK State Taxes

Prorate = Percent of Federal AGI that came from LA/OK

Starting TY 2025, LA no longer prorates the deduction

Louisiana

Oklahoma

Louisiana - $15,000 Gambling income. Taxes Due $75�Single 65+ : $20,000 earned income from Texas.

There is $0 LA tax for Single or MFS with gambling winnings below $ 12,500

There is $0 LA tax for MFJ/HoH/QSS with gambling winnings below $ 25,000

Oklahoma - $3,000 Gambling income. Taxes Due $112�Single: 65+: $50,000 earned income from Texas

OK

OK Standard Deductions:

$ 6,350 - Single/MFS

$ 9,350 - HoH

$ 12,700 - MFJ/QSS

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OK Personal Exemptions:

$1000 per person

Note: This is a progressive tax

State Source Income

The Ratio = ----------------------------

Total Income

$3,000

----------- = 5.66%

$53,000

Fed minus

deductions

Apply tax rate

Prorate tax due

W-2G for Gambling, or Other Gambling Income

• Enter the W-2G as normal, ensuring you enter the State info, boxes 13 – 15.
• You may aggregate W-2G’s for the same payer (box 13). For the state return, you can add all the winnings together for a total number (box 14, State Winnings). Keep a running tab in the intake book as you enter them to help the QR.
• Non-W-2G winnings in TS are Fed >> Income >> Other Income >> Other Compensation >> Other Gambling Income not reported on W-2G. There is no place to report State so you must manually capture this for the total state winnings

OK State Royalties – we had 1 in ty 2024 (1099-MISC)

• These will typically be in a 1099-Misc. Complete in TaxSlayer as normal, ensuring you complete the state information.
• Royalties may also be in Sched K-1. It’s more complicated as it could be 3 different forms (1041 Beneficiaries, 1065 Partners or 1120 Shareholder) and each form puts it in a different place.
• We use the Gross amount of Royalty. The 15% depletion was done for the Fed return and already accounted for in the Fed AGI.
• You must enter each Royalty individually. However, for the state return, you can add all the income together for a single number. Keep a running tab in the intake book to help the QR.

Bubba’s Oil Well

Somewhere, OK

3) Preparing the State return in TaxSlayer

• Complete the Federal return normally in TaxSlayer, ensuring you record all State income and tax withheld.
• The following example assumes a return is already prepared and we are entering Louisiana Gambling Winnings of $1000 and Louisiana Withholding of $250
• 2025 state taxes went live in Practice Lab Jan 1. The following slides may change a bit based on updates.
• OK state taxes look very similar to LA, though some of the boxes may be a little different.

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Enter Gambling Winnings in TaxSlayer �Federal >Income > Less Common Income > Gambling Winnings W2G

Ensure you enter the State Information.

After completing the Federal Section, click on the State Section – then Click on the “Add State Return(s)” Button

Select Louisiana from the drop down menu or click the state

Only Non-Resident

Select Basic Information.

Complete the Basic Information

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A taxpayer may be filing only to recover state taxes. It’s possible they may not be required to file a Federal return. Update buttons as needed.

Not entering income has been the biggest error on State Returns. TaxSlayer does NOT update the income.

Both LA and OK have a box for “Other Income”. This is where you put the LA/OK sourced gambling income

Enter total state gambling winnings here

For OK, enter total state royalties here

Remember, no gambling losses allowed for State returns

The State taxes owed/refunded update after leaving the state return.

State Return Extras

• If you already have prepared and filed a federal return, You can file a state return only
• For LA, under the Efile section there is an optional State ID section, allowing the input of taxpayer’s Texas Drivers License Number. May speed refund as Louisiana advises 45-days to process a refund
• Louisiana has a “Where’s My Refund Site”. It’s on the TX3D5 Public Page
• https://latap.revenue.louisiana.gov
• OK has a “Where’s My Refund” site. It’s on the TX35 Public Page
• https://oktap.tax.ok.gov/oktap/web/_/
• For ERO’s: Louisiana acceptance of the Filed State Return will be shown on the normal Client Status line next to the Federal Return Status

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4) Get Certified

• To obtain a TX3 D05 AARP State Tax Return certification, complete the next four questions, which includes completing a return in Practice Lab:
• Send your answers to Lowell Pless (LowellPless@gmail.com) and he will record your certification. (Or tell you it’s wrong!)
• HOWEVER, state returns are not currently available in Practice Lab for TY 2025.

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Question 1

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Which Louisiana State return is out of scope for us?

• Taxpayer has another tax document (besides W-2G) with Louisiana income tax withheld
• Taxpayer is a not a resident of Louisiana
• Taxpayer’s Federal AGI is over 400% of Federal poverty level
• Taxpayer is filing as MFJ

Question 2

23

A Louisiana State Return is required if the taxpayer is not required to file a Federal Return?

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• True
• False

Question 3

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An Oklahoma State Return is required if:

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• Taxpayer is required to file a Federal Return
• Oklahoma income was $1,000 or more
• The taxpayer cheered for OU in the Red River Rivalry
• None of the above

Question 4

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• The Proficiency exercise Miller has a W-2G on page 45 of the NTTC Workbook. Change the state on the W-2G to Louisiana and do an LA state return. Note your answer. Then change the state to OK and do an OK return and note your answer. You can also do both LA and OK using the same amounts in both.
• OK state returns are currently available in Practice Lab for TY 2025, and the LA ones are not calculating correctly.

Send Lowell the LA and OK state taxes owed or refunded

• Comments

• Questions