Question

I live in Indiana. I won a jackpot gambling in Mississippi. They deducted their state tax from the winnings. How do i get that money back to pay Indiana?

Forum|Forum|7 years ago
June 6, 2019
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TurboTax Free Edition Online

Employee

You don't necessarily get all of the Mississippi tax back. Income is subject to tax in the state where you earn it. All your income is also subject to tax in the state you live in, no matter where the income is from. You have to file a Mississippi nonresident tax return in addition to your Indiana resident tax return. The Mississippi return will determine how much, if any, of the Mississippi tax you get back. You will get a credit on your Indiana return for any tax that you have to pay to Mississippi. Prepare your Mississippi nonresident tax return first, then your Indiana resident tax return.

SteamTrain

Employee

You likely won't get anything back from MS

From MS's FAQ's on MS gambling winning's adn W-2G's:

"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."

....problem is that you likely can't get an Indiana Credit for taxes paid to MS without filing a MS nonresident tax return. Unless ...somehow.....Indiana has a special recognition of the special MS W-2G, non-filing procedure.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*