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The income from the casino will be required to be reported in the state where the winnings were derived from as well as your resident state. Review the information below for the resident versus nonresident state returns. Always prepare the nonresident state(s) return first.
Resident State: All income worldwide is required to be reported on your resident state return. Any money that is also taxed in a nonresident state allows you to use "credit for taxes paid to another state" when you complete your resident state return. Your resident state does not want you to pay tax twice on the same income.
Nonresident State: Any money earned in a nonresident state is required to be reported on that state tax return (with the exception of reciprocal agreements which does not apply in this case). The nonresident state will tax any income earned while you were in that state. Complete this state return first.
The income from the casino will be required to be reported in the state where the winnings were derived from as well as your resident state. Review the information below for the resident versus nonresident state returns. Always prepare the nonresident state(s) return first.
Resident State: All income worldwide is required to be reported on your resident state return. Any money that is also taxed in a nonresident state allows you to use "credit for taxes paid to another state" when you complete your resident state return. Your resident state does not want you to pay tax twice on the same income.
Nonresident State: Any money earned in a nonresident state is required to be reported on that state tax return (with the exception of reciprocal agreements which does not apply in this case). The nonresident state will tax any income earned while you were in that state. Complete this state return first.
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