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I have several questions on this topic and have been reading everything/everywhere. Please pardon if this duplicates previous posts! Maybe VP could make Taxes/Winnings its own forum?
#1 What states are you responsible to pay state tax on W2G winnings? Which of those are automatically withheld and which are not refundable?
#2 Coin In/Coin Out Statements - I get the jist, but the players club looked at me like I had 5 heads at our local PA casino. Can someone give a detailed explanation of these?
#3 Win/Loss Statements & Record Keeping - If I have a W2G for $10k at one casino and my Win/Loss shows $5k to the good, can I subtract off $5k loss without record keeping and survive an audit?
Any specific suggestions on record keeping?
Tax Questions
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DKStoner
- Forum Rookie
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- Joined: Wed Apr 11, 2012 6:12 pm
PA - gambling winnings are subject to tax even if you are a NONresident. IDK if you get it back if your state taxes winnings also. PA lottery has different regs.
Most PA casinos will not withhold federal tax unless you win over $10k in one shot.
Most PA casinos will not withhold federal tax unless you win over $10k in one shot.
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BillyJoe
- Video Poker Master
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- Joined: Sat Aug 23, 2008 2:00 pm
DK - I can only speak to the states that I play in the most, and even then, it is smart to re-check the state tax laws each year, since they do change. Note that this is for NON-RESIDENTS.
Nevada / Florida - no state tax
Mississippi - withholds state tax when paid, never to be seen again, even if you file a return.
Louisiana - withholds state tax, but filing a return gets you a refund.
Illinois - non-lottery, 'riverboat' gaming wins are not taxed.
Indiana / North Carolina - will withhold state taxes if you request, but it is owed on all gross winnings, so you must file a return.
With regard to record keeping, I have been audited a few times, and each time, the IRS accepted the casino's annual Win/Loss Statements as backup to my claimed loss deductions to offset the winnings. Every year, I get a report from every casino that I had played in that year, since your losses for the year are your TOTAL casino gaming, not just the particular state where you may have hit it big. Remember that this is FEDERAL taxes - to my knowledge, none of the states that tax gaming winnings allow you to offset those winnings with losses as a non-resident.
Nevada / Florida - no state tax
Mississippi - withholds state tax when paid, never to be seen again, even if you file a return.
Louisiana - withholds state tax, but filing a return gets you a refund.
Illinois - non-lottery, 'riverboat' gaming wins are not taxed.
Indiana / North Carolina - will withhold state taxes if you request, but it is owed on all gross winnings, so you must file a return.
With regard to record keeping, I have been audited a few times, and each time, the IRS accepted the casino's annual Win/Loss Statements as backup to my claimed loss deductions to offset the winnings. Every year, I get a report from every casino that I had played in that year, since your losses for the year are your TOTAL casino gaming, not just the particular state where you may have hit it big. Remember that this is FEDERAL taxes - to my knowledge, none of the states that tax gaming winnings allow you to offset those winnings with losses as a non-resident.
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DKStoner
- Forum Rookie
- Posts: 18
- Joined: Wed Apr 11, 2012 6:12 pm
Thank you Billyjoe!
Surprised New Jersey is not on your list, since you mentioned playing in AC..no W2g's?
Do you file tax returns with IN & NC or is it a simple form to Dept of Revenue to pay tax owed?
PA does allow you to reduce your winnings up to the amount of losses, but you can not include lottery.
LA allowed me to file for a "partial" refund of tax withheld since I pay in PA, very confusing. Possibly only because I file Schedule C?
Surprised New Jersey is not on your list, since you mentioned playing in AC..no W2g's?
Do you file tax returns with IN & NC or is it a simple form to Dept of Revenue to pay tax owed?
PA does allow you to reduce your winnings up to the amount of losses, but you can not include lottery.
LA allowed me to file for a "partial" refund of tax withheld since I pay in PA, very confusing. Possibly only because I file Schedule C?
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BillyJoe
- Video Poker Master
- Posts: 3198
- Joined: Sat Aug 23, 2008 2:00 pm
Thank you Billyjoe!
Do you file tax returns with IN & NC or is it a simple form to Dept of Revenue to pay tax owed?
PA does allow you to reduce your winnings up to the amount of losses, but you can not include lottery.
LA allowed me to file for a "partial" refund of tax withheld since I pay in PA, very confusing. Possibly only because I file Schedule C?
I live in Florida, so with the exception of Mississippi, Nevada and Illinois, I file non-resident State Tax Returns in every state that I collected a W2G that year.
Do you file tax returns with IN & NC or is it a simple form to Dept of Revenue to pay tax owed?
PA does allow you to reduce your winnings up to the amount of losses, but you can not include lottery.
LA allowed me to file for a "partial" refund of tax withheld since I pay in PA, very confusing. Possibly only because I file Schedule C?
I live in Florida, so with the exception of Mississippi, Nevada and Illinois, I file non-resident State Tax Returns in every state that I collected a W2G that year.
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DKStoner
- Forum Rookie
- Posts: 18
- Joined: Wed Apr 11, 2012 6:12 pm
Please forgive my ignorance, but why do you file in the state of NV if no state tax is required?
I have heard that MS is a lost cause and understand the logic there!
I have heard that MS is a lost cause and understand the logic there!
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BillyJoe
- Video Poker Master
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- Joined: Sat Aug 23, 2008 2:00 pm
Please forgive my ignorance, but why do you file in the state of NV if no state tax is required?
I have heard that MS is a lost cause and understand the logic there!
Sorry for any confusion. No state tax returns filed in FLA or Nevada.
I have heard that MS is a lost cause and understand the logic there!
Sorry for any confusion. No state tax returns filed in FLA or Nevada.
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FloridaPhil
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I have had a number of W2Gs from Mississippi over the years. They always take out 3% up front. My tax guy told me to forget about ever getting it back.
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spxChrome
- VP Veteran
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- Joined: Tue Nov 07, 2006 9:21 pm
I have had a number of W2Gs from Mississippi over the years. They always take out 3% up front. My tax guy told me to forget about ever getting it back.
Yup
Yup
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Tedlark
- Video Poker Master
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- Joined: Mon Oct 02, 2006 12:29 am
I had a hand pay in Indiana earlier this year and Indiana state tax was taken out.I was told that it is taken from every out of state resident.
