Lottery winnings out of state

[kpangelinan]

If a resident of one state wins a lottery (which is being paid out over 10 years) that is in another state that has an income tax, is that person required to file as a non-resident in the lottery winning state?

[ChEAr$]

If a resident of one state wins a lottery (which is being paid out over 10 years) that is in another state that has an income tax, is that person required to file as a non-resident in the lottery winning state?

Lottery winnings are deemed source income by all states with which I am
acquainted, e.g. GA, AL, MS.

[BOB W]

For what it is worth, I have clients that go to Atl. City and receive many statements of winnings, although they never have a profit. I have never filed a NJ tax return and have never received a notice from NJ for unfiled tax returns. This has been going on for 10 years +.

[Lion]

Nj

I had a couple come in with multiple years to file for NJ for a lottery winning. We're in CT. NJ sent them the tax booklets and a sternly worded letter.

[Burke]

If a resident of one state wins a lottery (which is being paid out over 10 years) that is in another state that has an income tax, is that person required to file as a non-resident in the lottery winning state?

Most states are withholding on non-residents these days. This state did not? To answer your question, he most likely needs to file there, but you don't mention the state and they are all different. Need to check it out with their Dept of Revenue or equivalent. There might be out-of-state tax credits so tax is not paid on same income in both resident and non-resident. Again, it depends on the particular state's tax laws.

[kpangelinan]

State is CT

Most states are withholding on non-residents these days. This state did not? To answer your question, he most likely needs to file there, but you don't mention the state and they are all different. Need to check it out with their Dept of Revenue or equivalent. There might be out-of-state tax credits so tax is not paid on same income in both resident and non-resident. Again, it depends on the particular state's tax laws.

Here's where I was confused....a state amount was withheld in the box for state withholdings, but there was no state listed. The state where the winnings were, was in CT.

[thomtax]

Just for info, it is my understanding that Mississippi now withholds tax at the time of winning and no return is necessary.

LT

[kpangelinan]

Tax Book all states

I just looked at my tax book all states and it does state in the CT one that gambling winnings reported on a federal Form W2G is considered CT source income.

I love this board and my Tax Book. Thanks everyone!

[ChEAr$]

Just for info, it is my understanding that Mississippi now withholds tax at the time of winning and no return is necessary.

LT

I was about to respond with this. Mississippi considers it not as an income taxable
event, but the 3% they withhold is rather an excise tax.

Even so, other states, in particular Alabama, may consider it same as income tax
and thus allow a credit.