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W2G winnings showed $60 withheld in another state, but I'd need to spend $40 for a second state return for $20 difference

Forum|Forum|4 years ago
February 1, 2022
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W2G winnings showed $60 local tax withheld in another state (that i am not a resident of), but I'd need to spend $40 for a second state return for $20 difference. I've tried to send my free state tax return that I am a resident of but can't proceed with program.

Best answer by rlpowers4834

Thanks, Ernie. After further research, I found that the $60 reported as Mississippi State Tax withheld from a gambling win is actually a 3% fee/tax that is non-refundable. Page 23 of MS Non-resident tax return booklet states that W2-G form shows the state withheld tax but that it is un-refundable to make sure MS gets it's tax money from all casino wins.

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ErnieS0

Remove the local tax information from the W-2G screen (boxes 16-18) and try filing.

State and local taxes are deductible on your federal return in some cases. If you do not see a change in your refund, it means you are using the standard deduction so removing the local tax will not affect federal.

You don't say what is your home state, however, the same applies for state. If there is no change, removing the local tax will not matter.

If there is a change in federal or state, you will get less of a refund.

Some local governments have mandatory filing. Check with the local taxing district to see whether you have to file a local tax. If you do, you can probably fill out a form online and mail it in.

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rlpowers4834AuthorAnswer

Thanks, Ernie. After further research, I found that the $60 reported as Mississippi State Tax withheld from a gambling win is actually a 3% fee/tax that is non-refundable. Page 23 of MS Non-resident tax return booklet states that W2-G form shows the state withheld tax but that it is un-refundable to make sure MS gets it's tax money from all casino wins.