Question

gambling winnings, nonresident state, taxes withheld

Forum|Forum|3 years ago
April 19, 2023
1 reply
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I live in NJ and won a slot jackpot in PA. I had the casino withhold taxes from the winnings. When I did my returns on here it showed me getting the full amount back that I had withheld for PA. Subsequently, my NJ tax bill increased by the same amount. So essentially PA tax was withheld from the winnings, and I am now paying that amount to NJ. does this seem right?

M

Mike9241

generally, like the IRS, states tax their residents on all income where-ever earned but do give credit for income taxes imposed on the taxable income of the non-resident state that is also taxed by the resident state. evidently the PA tax was zero so no credit for NJ.