When playing in Indiana, what are the tax implications for out-of-
state residents.
Is their withholding? Refundable -- partial or whole?
Indiana - Tax Implications
Refundable to the extent of the win, then it's 3.4% of net win for the
taxable year.
ยทยทยท
--- In vpFREE@yahoogroups.com, "kelso1600" <kelso1600@...> wrote:
When playing in Indiana, what are the tax implications for out-of-
state residents.Is their withholding? Refundable -- partial or whole?
_________________________________________________________________________
kelso1600 wrote:
> When playing in Indiana, what are the tax implications for out-of-
> state residents.
>
> Is their withholding? Refundable -- partial or whole?
paladingamingllc replied:
Refundable to the extent of the win ...
Just to clarify, I presume this to mean that any tax withheld on
winnings can be refunded to the extent that the winnings are offset by
other in-state gambling losses?
... then it's 3.4% of net win for the taxable year.
Again, that would be the net IN win, right.
One area confuses me. I presume that if you're a non-resident, and
have no other IN sourced income, that you file IT-40PNR (part or
full-year non resident tax form).
On that form you detail income from your IRS 1040, separately
detailing portions from IN sources (presumably, the only line
completed on the IN section would be your IN gambling income that was
reported as "Other Income" on the 1040).
The difficulty I encounter is that IN does not appear to allow all IRS
1040 Schedule A deductions (e.g. home mortgage interest), which is
where gross IN gambling losses would presumably be claimed to offset
the gross winnings reported as "Other Income". It's not clear to me
where the gambling loss deduction would be taken within the
classifications allowed on the IN form.
Of course, I've only performed a cursory review ... I may have
overlooked the appropriate deduction. If that's the case, can you
guide me.
The other means by which losses could offset the reported casino
winnings would be to report net winnings on the income entry rather
than gross income. That would seem problematic in the case where
you're fully offsetting reported winnings with losses and would enter
a "0" value -- requiring further explanation when compared against the
reported winnings.
Bottom line is that I'm still obviously confused here. Can you clear
things up for me?
- Harry