I'm going up to Chicago - does either Indiana or Illinois have a state
tax that they take out of all $1200+ wins? I'm planning on playing the
100 play quarter NSUD at Majestic - if there is a state tax it isn't
worth playing.
Question about Illinois/Indiana Taxes
I don't know about Illinois but I don't believe Indiana does. Beware of states who take taxes out of ALL jackpots, even those under the $1200 limit.
Tyson Kopp <tkkd72@mizzou.edu> wrote: I'm going up to Chicago - does either Indiana or Illinois have a state
tax that they take out of all $1200+ wins? I'm planning on playing the
100 play quarter NSUD at Majestic - if there is a state tax it isn't
worth playing.
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[Non-text portions of this message have been removed]
<<Beware of states who take taxes out of ALL jackpots, even those under the $1200 limit.>>
Which ones are those?
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________________________________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
Indiana DOES take out taxes on any W2G jackpot. Rate is 3.4%. Illinois does not.
This is the latest info that I have. Let me know if anything has changed.
···
________________________________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
Iowa does for one. I had a $700 jackpot and they took state taxes from it. i don't live there so maybe that is why??
queenofcomps <queenofcomps@cox.net> wrote: <<Beware of states who take taxes out of ALL jackpots, even those under the
$1200 limit.>>
Which ones are those?
···
________________________________________
Jean $¢ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
---------------------------------
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[Non-text portions of this message have been removed]
Thanks Jean. I didn't know that and do gamble in Indiana some.
queenofcomps <queenofcomps@cox.net> wrote: Indiana DOES take out taxes on any W2G jackpot. Rate is 3.4%. Illinois
does not.
This is the latest info that I have. Let me know if anything has changed.
···
________________________________________
Jean $¢ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
---------------------------------
Pinpoint customers who are looking for what you sell.
[Non-text portions of this message have been removed]
--- In vpFREE@yahoogroups.com, Money Works <worksforthemoney@...>
wrote:
Thanks Jean. I didn't know that and do gamble in Indiana some.
queenofcomps <queenofcomps@...>
wrote: Indiana DOES take out taxes
on any W2G jackpot. Rate is 3.4%. Illinois
does not.
This is the latest info that I have. Let me know if anything has
changed.
________________________________________
Jean $¢ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
Still the same. An IL player who hits a W2G in IN can take a credit
of the first 3% out of the 3.4% on their IL return. Funny this should
be asked now as I received a $1 refund check from IN last Saturday.
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Pinpoint customers who are looking for what you sell.[Non-text portions of this message have been removed]
Illinois does NOT withhold their 3% tax on W2-G's but they come after
people that earn them, even out of state people.
It would actually be better if they took it out, but they do not allow
it to be taken out, even on large wins.
Hollywood {Aurora) and Empress (Joliet) will withhold the 3% IL tax if
requested. When Empress started this last year they only did it for
Platinum card holders. Harrahs (Joliet) will not withhold the 3% IL
tax. It varies by casino, but one has to request it as it is not
automatically done.
dlgreg
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--- In vpFREE@yahoogroups.com, "Lavona Rann" <lrann2@...> wrote:
Illinois does NOT withhold their 3% tax on W2-G's but they come after
people that earn them, even out of state people.
It would actually be better if they took it out, but they do not allow
it to be taken out, even on large wins.
Thanks Lavona. That is good to know as I live in the Midwest.
Lavona Rann <lrann2@earthlink.net> wrote: Illinois does NOT withhold their 3% tax on W2-G's but they come after
people that earn them, even out of state people.
It would actually be better if they took it out, but they do not allow
it to be taken out, even on large wins.
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[Non-text portions of this message have been removed]
<<Illinois does NOT withhold their 3% tax on W2-G's but they come after
people that earn them, even out of state people.>>
If you win money in another state that has a state income tax, you're technically supposed to file a return in that state also. Although this can be complicated, usually the amount is small enough that there is no tax owed in that other state due to standard deductions, exemptions, etc. If you do have to pay tax to another state, you are allowed (in most cases) to deduct that as a credit on your own state tax return if you live in a state that also has a state income tax. This way you aren't taxed twice.
There are many fine points and complications when one gambles outside his own state. In "Tax Help for the Frugal Gambler," which you can order at QueenofComps.com, there is a whole chapter on this subject and a complete list of states and how they each handle gambling wins/losses and which states withhold state taxes from W2G jackpots.
Does Illinois actually send a tax bill to out-of-state W2G winners even though IL tax has not been withheld? I'd like to hear some personal experiences about this, both in IL and other states which do not withhold state tax, as Marissa and I are expanding the tax book before next tax season and we want to discuss this subject.
···
________________________________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
<<Iowa does for one [take taxes out of jackpot that does not require a W2G because it isn't $1200 or over]. I had a $700 jackpot and they took state taxes from it. i don't live there so maybe that is why??>>
That IS strange. Has anyone else ever had this happen, in any state? Most of the time the issue wouldn't come up, I don't think, because the machine usually wouldn't lock up unless it is $1200 or over. Although I have played quarter machines that will lock up and you will get a handpay for a $1000 royal, even though you won't get a W2G.
I am wondering if this happens more in states that do take out state taxes. They could set the machines to lock up at any point they want to. I guess it depends on how the state law states this.
···
________________________________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.
--- In vpFREE@yahoogroups.com, "queenofcomps" <queenofcomps@...>
wrote:
Does Illinois actually send a tax bill to out-of-state W2G winners
even though IL tax has not been withheld? I'd like to hear some
personal experiences about this, both in IL and other states which do
not withhold state tax, as Marissa and I are expanding the tax book
before next tax season and we want to discuss this subject.
···
==================================================================
I answered Jean privately but after thought decided to post for all.
I won a $97k jackpot in Tunica, MS a few years back, and the state of
Illinois came after me with penalties and fines for not reporting it
on my Illinois income tax, even though I had paid Mississippi's tax.
A friend of mine was in the opposite position. Living in Wisconsin
and playing in Illinois. She had a $4k W2G from an Illinois Casino
and did not file a non-resident Illinois Income tax form. Her tax
owed to Illinois would have been a maximum of $120, but with fines
and penalties after they went after her for not filing, she paid many
times that amount.
Illinois is very good about bilking money from gambling, be it
casinos or players. In fact, they are now discussing adding casino
licenses to balance the state budget. Our paytables took a major hit
when the last round of casino taxes were put in. Who knows what will
happen next but I'm not looking forward to it.
An update to my post below:
Harrah's Joliet will now withhold the 3% Illinois tax if requested.
They started doing this several weeks ago.
dlgreg
->
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Hollywood {Aurora) and Empress (Joliet) will withhold the 3% IL tax if
requested. When Empress started this last year they only did it for
Platinum card holders. Harrahs (Joliet) will not withhold the 3% IL
tax. It varies by casino, but one has to request it as it is not
automatically done.
dlgreg