For example, the full winnings of one multi-million slot jackpot is paid in 25 annual installments, or you can take a lump sum of 60 percent of the winnings.
If you were an Illinois resident when the gambling winnings were earned, you must pay Illinois Income Tax on the gambling winnings. However, you may include the gambling winnings in the non-Illinois portion of Schedule CR, Credit for Tax Paid to Other States.
If Illinois income tax has been mistakenly withheld from the wages or salary of an Iowa resident, the Iowa resident must file an Illinois income tax return to get a refund. Any questions on how to complete the Illinois return should be directed to the Illinois Department of Revenue at 1-800-732-8866.
Gov. J.B. Pritzker plans to increase state’s tax rate from 30 to 50 percent on video gambling machines. Illinois Gaming Machine Operators Association proposed raising the bet limit on single plays, increasing the maximum winnings, higher jackpots and more gambling terminals allowed at one location. Rep. Michael Zalewski filed two amendments on sports betting bills, but stakeholders mentioned.
As a result, more and more people have gambling winnings or losses. Unfortunately, not all taxpayers maintain adequate records of wins and losses and many become subject to IRS audits. Learn the rules and regulations for accounting for gambling winnings and losses.
You have to file an Indiana return if your income from Indiana sources (including gambling winnings) is more than the amount of your Indiana exemptions. You can find out the amount of your Indiana.
Paying state taxes on gambling winnings in another state IL is the ONLY state that DOES NOT allow you a credit for taxes paid to another state on gambling winnings. Their stance is that IL does not tax nonresidents for gambling winnings they win in IL and IF other state followed this same rule, they would not tax IL residence.
Illinois Video Gambling Tax Hike Will Be Decided by Lawmakers With Financial Ties to the Industry. As video gambling has grown in the state, so have the industry’s links to lawmakers.