Do I have to file a Michigan tax return if I have gambling winnings there but I live in Illinois and do I have to put this on my Illinois return?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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Casino withheld state income tax but did not indicate the state. How can I get this information?

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Best answer by Cindy0H

I hate to be the bearer of bad news, but you must file and report the gambling winnings for both Michigan and Illinois. From the states:

Am I required to file a Michigan Individual Income Tax Return MI-1040 to report gambling/lottery winnings received from a Michigan lottery, casino or horse track if I am a resident of a reciprocal state?

Yes. The reciprocal agreement does not apply to gambling/lottery winnings. All taxpayers, regardless of residency, must report gambling/lottery winnings won in Michigan.

https://www.michigan.gov/taxes/0,4676,7-238-75545_43715-154060--,00.html

If you were an Illinois resident when the gambling winnings were earned, you must pay Illinois Income Tax on the gambling winnings. Additionally, you may not include the gambling winnings in the non-Illinois portion of Schedule CR, Credit for Tax Paid to Other States.

https://www2.illinois.gov/rev/questionsandanswers/pages/468.aspx

If you have other questions about this, ask in the comment section below.

Cindy0HAnswer

Level 10

I hate to be the bearer of bad news, but you must file and report the gambling winnings for both Michigan and Illinois. From the states:

Yes. The reciprocal agreement does not apply to gambling/lottery winnings. All taxpayers, regardless of residency, must report gambling/lottery winnings won in Michigan.

https://www.michigan.gov/taxes/0,4676,7-238-75545_43715-154060--,00.html

https://www2.illinois.gov/rev/questionsandanswers/pages/468.aspx

If you have other questions about this, ask in the comment section below.