Players cards, win loss statements, taxes

[davidearl]

      Marie, if you paid taxes to the state of Illinois, you do not owe taxes to Michigan on your Harrah's Joliet win. The Michigan tax return asks about out of state income and you do not owe taxes to both states.     

[BillyJoe]

MM - check out IL-1040 Schedule NR Instructions, page 3. It talks about NR form line 19 - Other Income. Basically, it says that you need to include Illinois Lottery winnings, but NOT river boat gambling winnings.
If your only Illinois income was from the casinos, then you have NO TAXABLE ILLINOIS INCOME, and you do not even have to file an Illinois return, unless you had Illinois state taxes taken out from your winnings, which you can get back.  

[OTABILL]

Marie, win/loss statements only reflect VP/slot play. My understanding is that you can apply all gambling losses against winnings everything from losing lottery tickets to table games at a casino.

[marie meijer]

Thanks davidearl, At the time of the first hit, I told them to take out the state taxes. They did not seem to know what I was talking about or have the right answers, so I did not pursue it. We are getting down to the wire and still do not have the answers. Hubby is trying to contact HR Block on line but they ask for some password unknown to us. Four choices come to mind: Pay MI taxes OR pay IL taxes OR ignore OR stress out with worry. IF we do not pay state taxes somewhere, I sense that will come back to BITE us! Someone important came up with "reciprocal" between MI and IL so I have a feeling paying in MI will take care of it."where required" was on the IL state W2G form. I assume/guess if I lived in NV w NO state taxes, I would not be responsible for paying state taxes anywhere on it. Any further input re paying state taxes on IL hits for MI resident is welcome here or in a pm.

[marie meijer]

Many thanks for the info, billy and OTABILL! That is also my understanding, OTABILL.

[marie meijer]

I found on line that MI is in a state reciprocal agreement with IL, as a member already mentioned via pm.  "If two states have reciprocal agreements and an individual lives in one of those states and works in the other, the individual will only be subject to the income tax where he lives."

[BillyJoe]

I found on line that MI is in a state reciprocal agreement with IL, as a member already mentioned via pm.  "If two states have reciprocal agreements and an individual lives in one of those states and works in the other, the individual will only be subject to the income tax where he lives."
Well, MM, that would appear to be your answer. You did not work in Illinois, and Illinois does not view casino winnings as taxable income, therefore, you have NO STATE TAXABLE INCOME in either state for your Illinois jackpots.
 
As you already know, you need to show the wins on your federal return.

[BillyJoe]

Marie, win/loss statements only reflect VP/slot play. My understanding is that you can apply all gambling losses against winnings everything from losing lottery tickets to table games at a casino.  
Losses can offset wins ONLY on a federal return. States that I have dealt with as a Non-Resident do not allow gambling losses to offset wins IF that state taxes gambling winnings, like Michigan, Mississippi, Louisiana, Indiana and North Carolina to name a few. Illinois does not tax casino gambling winnings at the state level - only Illinois Lottery winnings.  
 
See, MM, just ANOTHER reason to move to FLA - no state income taxes.  

[pokernut1232001]

MM here was my scenario, won a considerable amount in IL lottery ($100,000), lived in Texas at the time, no state income tax there.  IL considers lottery winning as income to THEIR state, had to pay IL state taxes and federal.  However, they deducted it before I even received a check.   Hope you got your taxes all figured out, down to the wire here. 

[BillyJoe]

MM here was my scenario, won a considerable amount in IL lottery ($100,000), lived in Texas at the time, no state income tax there.  IL considers lottery winning as income to THEIR state, had to pay IL state taxes and federal.  However, they deducted it before I even received a check.   Hope you got your taxes all figured out, down to the wire here. 
P Nut, congrats on your win - I know there was something that I liked about you.
A couple points. There are always automatic filing extensions, both state and federal, that are available, so if you are still not sure what is right, file an extension by April 16th to give you more time.
 
I mentioned earlier that, in fact, Illinois considers Lottery winnings as income, but NOT casino winnings, for non-residents.
 
Also, WITHHOLDING taxes when you are paid on a win is different than OWING taxes. Living in FLA, Louisiana withholds a bunch for their state taxes on handpays, but I actually only owe a small portion of that, and get back the remainder when I file a Louisiana state return.