Someone who is a resident of Alabama got this instruction from the AL state tax people<<Just attach copies of MS W2-G's to your LA return.">>
(Of course, they didn't say what they would do if you did this, not actually saying that you would get this as a credit on AL state taxes owed!!!!)
Someone with MS W2G's they can check: Do the W2-G's issued by MS have that 3% withheld amount listed and labeled. If so, how is it labeled - MS State Tax or MS State INCOME Tax. I was under the impression that MS did NOT call this 3% an INCOME tax, but just a state gaming/gambling tax. I am thinking that if it isn't labeled as state INCOME tax, other states wouldn't give you a credit. Of course, I am assuming government tax laws and regulations are "logical." That's really not safe!!!
Below is the whole post I am referring to:
<<Here is some information that you might find useful regarding the
treatment of the Mississippi 3% tax for a resident of another state.
First, here is a copy of a question that I sent to the Louisiana
Department of Revenue.
···
__________________________________
"I am a Louisiana resident. In 2002 I had some W2-G (gambling
income) tax withheld in Mississippi. In the past, I have filed a non-
resident tax return in Mississippi for this type of income, and I
have attached the Mississippi return to my Louisiana tax return in
order to take a credit against my Louisiana tax liability for
whatever final amount I paid to Mississippi. Beginning with this
year's tax return, Mississippi has changed their procedure regarding
W2-G income tax. Mississippi now collects an immediate 3% tax on
taxable jackpot winnings, which is considered by Mississippi to be a
non-refundable income tax. Since you can't get any kind of refund
from Mississippi for this withholding tax, non residents no longer
fill out a Mississippi non-resident income tax return if their only
Mississippi income came from W2-G winnings. The Mississippi tax
instruction booklet for non-resident income states this.
This change in the Mississippi procedure creates a conflict for
Louisiana residents, because the Louisiana personal income tax return
clearly states that the taxpayer must attach a copy of any out of
state tax return(s) in order to claim a credit for any income tax
paid to other states. All that I am going to have from Mississippi
are the W2-G forms showing the 3% income tax withheld by
Mississippi. To put it simply, Louisiana says that I must attach a
copy of a Mississippi non-resident return, while Mississippi says
that I do not file a non-resident return. Has there been any
discussion regarding how to resolve this conflict?
Thanks in advance for your reply."
______________________________________
I received this reply (I've x'd out the real names)....
_____________________________________
"From: XXXXXXXXXXXX [XXXXXXXXXXX@rev.state.la.us]
Sent: Wednesday, January 15, 2003 10:21 AM
To: XXXXXXXXXXXXXXXXXXX
Subject: MS W2-G Income
Mr. XXXXXXXXXXXXXXX,
Just attach copies of W2-G's to your LA return."
__________________________________________
Of course, the reply came with this disclaimer...
____________________________________________
"This reply to your inquiry constitutes "informal advice" from the
Department of Revenue, as contemplated by Louisiana Administrative
Code. LAC 61:III.101.D.3, which provides that informal advice does
not have the force and effect of law and is not binding on the
Department, the public, or the individual seeking advice. Informal
advice will have no effect on an audit."
______________________________________________
So anyway, it appears that residents of LA don't have to worry about
getting double taxed for jackpots that they hit in Mississippi. I
would be interested in the experience of people from other states
that are close to Mississippi, such as Alabama, Arkansas, and
Tennessee.>>
____________________
Jean $cott - "The Frugal Gambler"
MORE FRUGAL GAMBLING can now
be ordered, autographed, at
http://www.FrugalGambler.biz
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