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That’s exactly what I am saying. Granted I am talking about gambling income, however that income is treated as income earned. Illinois does not allow ANY deductions for tax paid to Another state for gambling. Specifically, no deduction allowed for taxes paid to another state for gambling. For example, for a $2000 W-2G Indiana takes out 3.23% then Illinois turns around and charges 4.95% and allows ZERO deduction for tax paid to Indiana. Therefore, on the same $2,000 income, you are charged BOTH state tax rates (8.18%). So, in essence, you are taxed TWICE for the same income with no allowable deduction.