Indiana Tax Rate On Gambling Winnings
- The winnings were reported, but the tax return claimed gambling losses of $65,000. The IRS decided that $65,000 was a lot to lose, and it sent an agent to conduct an audit. The tax preparer found a man with an extremely large collection of losing lottery tickets and made a deal: he would borrow 200,000 losing tickets for a month for $500.
- The rate of withholding depends on how much you win and the jurisdiction in which you buy your ticket. A federal tax is levied on all winners of prizes greater than $5,000, while many of the participating states apply their own tax on top of this. In addition, some locations, such as New York City, levy a local tax on lottery winnings.
That’s because lottery winnings are generally taxed as ordinary income at the federal and state levels (and, where applicable, locally). In fact, in most states (and at the federal level), taxes on lottery winnings over $5,000 are withheld automatically. However, withholding rates vary and do not always track state individual income taxes. Find Indiana tax forms. Know when I will receive my tax refund. File my taxes as an Indiana resident while I am in the military, but my spouse is not an Indiana resident. Take the renter's deduction. Pay my tax bill in installments. Claim a gambling loss on my Indiana return. Have more time to file my taxes and I think I will owe the Department.
Sec. 8.2. (a) Each person in Indiana who is required under the Internal Revenue Code to withhold federal tax from winnings shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department.
(b) In addition to amounts withheld under subsection (a), every person engaged in a gambling operation (as defined in IC 4-33-2-10) or a gambling game (as defined in IC 4-35-2-5) and making a payment in the course of the gambling operation (as defined in IC 4-33-2-10) or a gambling game (as defined in IC 4-35-2-5) of:
Terms Used In Indiana Code 6-3-4-8.2
- adjusted gross income: shall mean the following:
(a) In the case of all individuals, 'adjusted gross income' (as defined in Section 62 of the Internal Revenue Code), modified as follows:
Indiana Code 6-3-1-3.5
- Month: means a calendar month, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) winnings (reduced by the wager) valued at one thousand five hundred dollars ($1,500) or more from a keno game;
shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. The department’s instructions must provide that amounts withheld shall be paid to the department on the twenty-fourth calendar day of each month. Any taxes collected during the month but after the day on which the taxes are required to be paid shall be paid to the department at the same time the following month’s taxes are due. Slot machine and keno winnings from a gambling operation (as defined in IC 4-33-2-10) or a gambling game (as defined in IC 4-35-2-5) that are reportable for federal income tax purposes shall be treated as subject to withholding under this section, even if federal tax withholding is not required.
(c) The adjusted gross income tax due on prize money or prizes:
Indiana Tax Rate On Gambling Winnings 2020
(1) received from a winning lottery ticket purchased under IC 4-30; and
(2) exceeding one thousand two hundred dollars ($1,200) in value;
shall be deducted and retained at the time and in the amount described in withholding instructions issued by the department, even if federal withholding is not required.
(d) In addition to the amounts withheld under subsection (a), a qualified organization (as defined in IC 4-32.3-2-31(a)) that awards a prize under IC 4-32.3 exceeding one thousand two hundred dollars ($1,200) in value shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. The department’s instructions must provide that amounts withheld shall be paid to the department before the close of the business day following the day the winnings are paid, actually or constructively.
Indiana Tax Rate On Gambling Winnings Today
As added by P.L.28-1997, SEC.16. Amended by P.L.192-2002(ss), SEC.82; P.L.91-2006, SEC.8; P.L.182-2009(ss), SEC.200; P.L.212-2018(ss), SEC.24; P.L.58-2019, SEC.22.