Will the casino withhold any amounts from my winnings for Ohio income taxes?
Pursuant to R.C. 5747.063, if a person’s winnings at a casino facility are such that the IRS requires reporting on form W-2G or 1042-S ($1,200 or more not reduced by the wager for slot winnings; more than $5,000 reduced by the wager or buy-in for table win; or $600 or more if the winnings are more than 300 times the amount wagered or are subject to federal income tax withholding), the casino operator shall deduct and withhold Ohio income tax from the person’s winnings at a rate of four percent (4%) of the amount won. (Please note that, prior to June 12, 2012, each casino operator was required to withhold Ohio income tax at a rate of six percent (6%) for those people meeting the thresholds mentioned above.)
The casino operator shall issue a form W-2G (or form 1042-S for a foreign individual) reflecting the amount deducted and withheld, and also shall obtain any additional information deemed necessary. Please click here for a link to the statutory language relating to casino withholding. (Please note that, as of July 9, 2012, the on-line version of this language has not yet been updated to reflect the changes occurring in Am. Sub. H.B. 386 or Am. Sub. H.B. 487)
Casinos are not required to withhold school district income tax from prize winnings. Nonetheless, a taxpayer remains liable for the taxes imposed by section 5747.02 or Chapter 5748. of the Revised Code. An individual residing in a school district with a traditional income tax base who incurred prize winnings may need to make estimated tax payments as required by section 5747.09 of the Revised Code using form SD-100ES.
Please click here for more information regarding school district income tax.
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