tbryant
Level 3
12-07-2019
03:33 AM
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NC resident received Form W-2G (Gambling from Mississippi. State Tax withheld. Is Mississippi Gambling winnings included in NC Return and because this is the only Mississippi income, no tax is due but is the tax withheld refundable? Is the Mississippi W-2G Winnings to be included in NC State Income Tax return?
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IRonMaN
Level 15
12-07-2019
03:33 AM
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The resident state always wants it's residents to report all of their income earned, regardless of where they earned it. On the bright side, most states will allow a credit for taxes paid to another state.
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shyanne-2
Level 3
12-07-2019
03:33 AM
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The problem I ran into was that there is no MS tax return to attach to WI as on OS. MS takes their tax money up front and you do not file a MS tax return if only income was from a W2G. Never thought about attaching a copy of the W2G with no return being filed. Wonder if that would have worked?
IRonMaN
Level 15
12-07-2019
03:33 AM
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I'm sure someone has figured out how to beat the system, but I've never seen a NC return to know if that was one of the ways to win.
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rbynaker
Level 14
12-07-2019
03:33 AM
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Huh. I'd probably file a MS return anyway, just to have something to attach to NC. VA is the same way, no OSC without the other return attached. If it's not attached as a PDF, they will send a letter and hold the refund pending resolution.
sjrcpa
Level 15
12-07-2019
03:33 AM
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I'd file the MS return, too. And VA sometimes holds these up even when the other state return is attached.
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shyanne-2
Level 3
12-07-2019
03:33 AM
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I believe there was an issue of where to put the W2G on the MS return. Called MS dept of Revenue and was told do NOT file a return. They already had their money and would not accept a return.
Level 9
12-07-2019
03:33 AM
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I just filed one with zero owed and zero due with gambling income, but I still filed it. They must be smart in withholding down there to always guess the correct amount.
clr600
Level 8
12-07-2019
03:33 AM
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Just fill out the other states worksheet in NC and attach it with the W2g's to NC
Level 10
12-07-2019
03:34 AM
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When they first legalized gambling in Mississippi, they took the normal 5% Mississippi State income tax out of the payout winnings, and everyone (I live in Tennessee, so had lots of clients that went to Tunica), would file a Miss Non-Resident and get most if not all of the inc tax w/h back. Well, of course this completely bogged down the Miss Dept of Rev with paperwork, not to mention the outflow of money that they thought was theirs. So, after a few years. the decided to just tax the winnings at a lower rate of 3% and KEEP all of it..non refundable- non reportable. I would suspect you would need to report the w2g as income on your NC return, just like if you worked in Mississippi and made $. If they are able to itemize, gambling losses (up to winnings) are still a thing...lol
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