Non-resident state gambling winnings

[Jhy]

Florida resident I am

reportable Fed/state winnings in NJ and Mississippi.

I am assuming I have to file those states?  Thx

[SteamTrain]

Mississippi....No:   Wait for your W-2G, there is likely the default 3% state withholding on it.

"A non-resident taxpayer with only Mississippi gambling winnings and/or losses should not file a Mississippi tax return. The document provided by the casino is considered the income tax return for this type of Mississippi income and therefore is proof that the tax was paid to Mississippi.​"

It's part of one of the FAQs at the MS DOR website:

Individual Income Tax FAQs | DOR (ms.gov)

___________________________

NJ...don't know.

[TomD8]

NJ non-residents ARE subject to NJ income tax on NJ gambling winnings, including NJ lottery winnings that exceed $10,000.  You can read the details of NJ's policy here:

https://www.state.nj.us/treasury/taxation/pdf/pubs/tb/tb20r.pdf

[Jhy]

 So for Mississippi winnings that are shown on the W2-G form that they give you, If they have taken out 3% up front then I do not need to file a state tax form?

Also if you know, I only will be showing gross income from Mississippi, correct?   🙏😎

[Jhy]

In regard to all winnings and losses, are they talking coins in versus coin out total or just net winnings as shown on Record from Casino.   MGM provides both. Thx

[Hal_Al]

Simple answer: coins out,  Gross winnings.

You must report all your winnings as income. You  deduct your losses separately. The deduction is an itemized deduction and the total amount of the deduction may not exceed your winnings.

[TomD8]

@Jhy --

Q: If they have taken out 3% up front then I do not need to file a state tax form?

A:  Correct.  A non-resident taxpayer with only Mississippi gambling winnings and/or losses should not file a Mississippi tax return. The document provided by the casino is considered the income tax return for this type of Mississippi income and therefore is proof that the tax was paid to Mississippi.​

[Jhy]

Sorry this state stuff is new to me

if I put $100,000 dollars in the machine and have $98,000 in coins back it means a net loss of 2K.  If I also have a W-2 for a $2k jackpot I assume a wash?  

Am I understanding that I need to claim the full $100K to see a wash or just pay on the 2K and be able to show the the profit loss statement?  Thx again.  Must seem silly

[Hal_Al]

On the federal return, you report the $2K (from the W-2G) as income (line 8b of Schedule 1).  You deduct $2000 gambling losses on line 16 of Schedule A.  

If you don't have enough other (in addition to the allowed gambling losses) itemized deductions, to exceed your standard deduction ($12,550, $25,100 Married filing jointly), you will get the $2000 deduction and the entire $2000 winnings will be taxed.