Tax Withholding in Michigan for NON-RESIDENT jackpots

[Jean]

Marissa and I are unable to find out anywhere on the Internet the % Michigan withholds (for non-residents only) from W-2G jackpots for Michigan state taxes.

Here is what we wrote in the first edition of our tax book:

Michigan (4% in 2003, 3.9% in 2004. This withholding is for non-residents only and covers winnings from casinos, racetracks, and off-track betting.)

We would like to add, in the updated edition, what % it was for 2005, 2006, and perhaps what it will be in 2007.

Anyone had personal experience with this?

···

________________________________________
Jean $�ott - "FRUGAL VIDEO POKER"
This new book (autographed) and other
   frugal products are now available at my
   new Web site, http://queenofcomps.com/.
   E-mail address is queenofcomps@cox.net.

[caplatinum]

Jean is this in lieu of having to pay the Michigan income tax or
additional too. Why don't you just call the MGM Detroit, I'm sure
you one of their cards in Vegas, it is the same card tell them you
are going to be visting etc......-

-- In vpFREE@yahoogroups.com, "queenofcomps" <queenofcomps@...>
wrote:

Marissa and I are unable to find out anywhere on the Internet the

%

Michigan withholds (for non-residents only) from W-2G jackpots for

Michigan

state taxes.

Here is what we wrote in the first edition of our tax book:

Michigan (4% in 2003, 3.9% in 2004. This withholding is for non-

residents

only and covers winnings from casinos, racetracks, and off-track

betting.)

We would like to add, in the updated edition, what % it was for

2005, 2006,

···

and perhaps what it will be in 2007.

Anyone had personal experience with this?
________________________________________
Jean $¢ott - "FRUGAL VIDEO POKER"
This new book (autographed) and other
   frugal products are now available at my
   new Web site, http://queenofcomps.com/.
   E-mail address is queenofcomps@...

[Jean]

<<Jean is this in lieu of having to pay the Michigan income tax or additional too. >>

This is the amount they withhold from a W-2G jackpot payout for Michigan state taxes. Whether you can get any of it back depends on what state you are from (just like Louisiana and others). Some states have reciprocal agreements. Otherwise, you would have to file a non-resident Michigan state tax refund and what you might get refunded (if anything)depends on your specific financial details.

Below is good information from Skip's list, where I posted the same question:

<<Since I live in Michigan, I haven't had any personal experience with this,
but the withholding rates
you are quoting mirror the state income tax rate here - still at 3.9%.

From www.Michigan.gov/documents/446-I_web_102204_106903_7.pdf (2006
Michigan Income Tax

Withholding Guide):

WITHHOLDING ON NONRESIDENT GAMBLING WINNINGS

Michigan withholding is required on all reportable winnings by nonresidents
at Michigan casinos, racetracks,

or off-track betting facilities. Reportable winnings are those winnings
required to be reported to the Internal

Revenue Service (IRS) under the Internal Revenue Code. To calculate
Michigan withholding, multiply the amount of

reportable winnings by 3.9 percent. Include the amount withheld on the
recipient's Form W-2G.

Hope this is helpful. To the best of my knowledge, the rate is not changing
for 2007.>>

···

________________________________________
Jean $¢ott - "FRUGAL VIDEO POKER"
This new book (autographed) and other
   frugal products are now available at my
   new Web site, http://queenofcomps.com/.
   E-mail address is queenofcomps@cox.net.

[Non-text portions of this message have been removed]

[caplatinum]

Jean,

This was the original question, it was not about the ability to get
it credited or refunded in other states. I was curious that if like
Mississippi this is just a special gaming tax, not an income tax and
in fact correct me if I am wrong, but I believe gambling winnings
are EXEMPT from the Mississippi tax and the only tax there is the W2-
G non-refundable 3% withholding (which is really like an excise
tax). So my question is in Michigan is this a similar tax, or is it
an income tax withholding tax and non-residents are required to file
a Michigan income tax return if they have Michigan gambling
winnings? As you know New Jersey used to go after non-residents who
failed to file a New Jersey return and it had nothing to do with
holdings, gambling winnings in NJ are taxable to both residents and
non-residents and many non-residents of course don't file and still
don't.

So make believe it is not slots and there are no W2-Gs. I go to
Michigan once, play blackjack win $5,000, do I need to file a
Michigan tax return and owe money in Michigan if I am resident of
some other state like Indiana (I figure you would know that one). If
I live in Florida or Alabama, and I win $5,000 playing BJ in
Mississippi, I do not need to file anything in Mississippi because
Mississippi does not include gambling winnings in their income tax
system - the 3% tax on w2-gs there is not an income tax, but a kind
of excise tax - is this clearer now?

<<Jean is this in lieu of having to pay the Michigan income tax or

additional too. >>

[Jean]

I understood your question and thought I answered it but I guess it wasn't clear.

<<So my question is in Michigan is this a similar tax [to Mississippi], or is it
an income tax withholding tax and non-residents are required to file
a Michigan income tax return if they have Michigan gambling
winnings?

If you are a non-resident of Michigan and get a W-2G for a jackpot, they will withhold Michigan STATE INCOME TAX - 3.9%. This is NOT like Mississippi, since what they withhold there is not STATE Income Tax but a non-refundable "gambling tax" (although I have heard they do put it in the State Income Tax box on the W-2G because there is no other suitable box). So if you want to get a any refund from MI, you would need to file a Michigan state income tax refund.

There is no mention of table wins. I don't know that they ask for your state ID, so there would be no way for them to know how much you won in MI. They may "want" you to pay MI tax on table and non-W-2G wins and may even have such a law on their books, but any state who has or has had such a law has found it impossible to enforce unless there is a W-2G.

···

________________________________________
Jean $¢ott - "FRUGAL VIDEO POKER"
This new book (autographed) and other
   frugal products are now available at my
   new Web site, http://queenofcomps.com/.
   E-mail address is queenofcomps@cox.net.

[Non-text portions of this message have been removed]