epsmaker
epsmaker
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April 18th, 2014 at 9:49:05 AM permalink
Won 7k at Louisiana casino slots. They took out 6% for state income tax even though i'm not a residence. Can i get this back from the state?
BleedingChipsSlowly
BleedingChipsSlowly
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April 18th, 2014 at 10:13:34 AM permalink
I'm not an expert, but it's highly unlikely. The best you can hope for IMHO is to reduce the amount you owe for your state of residence by the amount you paid Louisiana. And no, if that amounts to less that Louisiana took you don't get consideration.
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rdw4potus
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April 18th, 2014 at 10:53:56 AM permalink
Usually, you pay state taxes to the state in which you work, not the state in which you live. That's why there are scandals every so often when some celeb hasn't filed taxes in a state (usually CA or NY, go figure...). In this case, you "worked" in LA. Depending on your specific situation, it may be worth filing a state return in LA next spring. If you have no other income in the state, you may be able to get back at least some of what they withheld.
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cyberbabble
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April 18th, 2014 at 10:54:10 AM permalink
This happened to me for a $5000 win about 10 years ago in Tunica. I think $250 was the state tax withholding.
Go to the Louisiana state income tax/revenue/whatever they call it website.
They probably have a special tax form for nonresident state income tax. Request them to mail you the form.
I filed the Miss. form and got about half of the withheld amount as a refund from Mississippi.
This would probably be the easiest way to find out for sure.
1arrowheaddr
1arrowheaddr
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April 18th, 2014 at 11:05:03 AM permalink
Generally, you will end up paying the higher of the tax rates between where you live and where the income is earned. For example, a non-professional gambler who lives in Colorado hits a $2,000 royal in Las Vegas. Nevada has no state income tax, so no state tax will be taken out. This income will still need to be reported on his Colorado tax return. Most states allow a credit to be taken for tax paid to other states. In this case the gambler would have to pay Colorado income taxes on the $2,000.

*This assumes that no gambling loss deductions are taken.
epsmaker
epsmaker
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April 18th, 2014 at 11:14:37 AM permalink
I live in Texas with no state income tax. I've got 1099's from winnings several times in OK and NM which have state income taxes and they do not withhold state income tax and no state tax is due from winnings. So i was surprised when they hit me with the tax in Louisiana. Will probably stay away from LA because of this.
teddys
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April 22nd, 2014 at 9:15:40 PM permalink
I got hit with some nasty withholdings in Ohio and Indiana last year. Gross.
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ahiromu
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April 22nd, 2014 at 10:44:38 PM permalink
http://lmgtfy.com/?q=louisiana+state+tax+gambling

First link - they specifically address this conundrum. 2% on the first 12k, you paid 6%, you'll get 2/3 of what you paid back so... $280?
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tringlomane
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April 22nd, 2014 at 11:59:00 PM permalink
Sounds right to me. Definitely file a non-resident return.

Quote: LA Dept. of Revenue

Gambling winnings earned in Louisiana is considered to be Louisiana sourced income. A nonresident who received gambling winnings from Louisiana sources and who is required to file a federal income tax return must file a Louisiana return reporting the Louisiana income earned. If the amount withheld is overpaid, a refund of the difference will be issued or credited to the tax liability for the following year, based upon the taxpayer’s return.

Sonuvabish
Sonuvabish
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April 23rd, 2014 at 6:52:16 AM permalink
Quote: epsmaker

Won 7k at Louisiana casino slots. They took out 6% for state income tax even though i'm not a residence. Can i get this back from the state?



According to Louisiana.gov, your winnings are subject to a 2.0% tax and you will be owed a refund of the rest when you file the required tax return with Louisiana. 6% is the maximum tax rate applicable to any amount of money from a source within the state, which may be the default withholding by the casino to avoid under-taxing.

This is neither highly unlikely, nor were you working. Whether you can deduct it from your own state taxes is questionable, but I doubt it.
vetsen
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April 23rd, 2014 at 7:26:08 AM permalink
The answer depends a lot of which state you live in.

If you file a Louisiana 2014 return, you'll get a refund for the difference between what was withheld and what you owe.

If you live in a state that has an income tax, you'll be able to take a credit for taxes paid to Louisiana on your own state's return.

The end result is going to be that you'll pay state taxes at the higher of the rates between Louisiana and your resident state.

The amount you'll pay taxes on can also be reduced by deducting losses that you've had, again that's if your resident state allows that.
Sonuvabish
Sonuvabish
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April 23rd, 2014 at 8:05:44 AM permalink
Quote: vetsen

The answer depends a lot of which state you live in.

If you file a Louisiana 2014 return, you'll get a refund for the difference between what was withheld and what you owe.

If you live in a state that has an income tax, you'll be able to take a credit for taxes paid to Louisiana on your own state's return.

The end result is going to be that you'll pay state taxes at the higher of the rates between Louisiana and your resident state.

The amount you'll pay taxes on can also be reduced by deducting losses that you've had, again that's if your resident state allows that.



I agree with this, except that deducting losses requires proof and results in the loss of the standard deduction so probably shouldn't do that.
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