2007-01-07 07:05:40 · 7 answers · asked by Randy M 1 in Business & Finance ➔ Taxes ➔ United States
Congrats! You should have received a 1099-G from the casino. Typically, the state will automatically withhold tax from gambling income, so take a close look at the paperwork you received from the IA casino.
Either way, you'll need to file an Iowa tax return as a non-resident and pay any tax due to the great state of Iowa. Then, on your MN return (the land of the ten thousand taxes), you'll need to file an additional schedule to account for the IA income that's already been taxed by Iowa. Surprisingly, TurboTax Deluxe can handle this kind of tax return if you buy the multi state version (that might be cheaper than finding a preparer to do it for you). If you already pay a preparer to do your return, I'm sure she'll have no difficulty handling this (it happens all of the time here in Illinois-we have riverboat gambling in IL, IA, WI, and IN).
Good luck!
2007-01-07 07:39:58 · answer #1 · answered by SuzeY 5 · 0⤊ 0⤋
Iowa is the one border state that Minnesota does not have a reciprocity agreement with. I just looked it up the filing requirements for a non-resident. The thresshold to file a Iowa return for a non-resident is only $1000. So it looks like you will need to file an Iowa return. They are not as easy as a Minnesota return. If you do have to pay any tax to Iowa, Minnesota will give you a credit on your MN return.
Have fun.
2007-01-07 09:45:23 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
Gambling winnings are almost always taxable income for all states regardless of where you live. You will pay federal tax once, and state tax once, although you may have two state payments and one state credit which cancels one of the state payments.
First, do the Federal return and record your winnings on Line 21 of the 1040: Other Income. Record your gambling losses if any on Schedule A.
Next, do the Iowa return.
Finally, do the Minnesota return. You will be able to get a credit on your Minnesota return for taxes owed to Iowa.
Or, spend some of those winnings and have a preparer do these returns for you.
2007-01-07 07:47:41 · answer #3 · answered by ninasgramma 7 · 2⤊ 0⤋
Congrats!
Now you have to claim the income on your federal return first. Then, you need to see if you are over the threshold for filing in Iowa. You may ned to pay as much as a few percent of the winnings to Iowa. Then you do MN return. IF you have to pay Iowa, you get a credit on your MN return in the year you pay Iowa for taxes paid to another state. If IA doesn't tax the income, MN will tax it.
Recommend visiting a preparer experienced in multi-state issues. (We are familiar with this type of case)
The WealthBuilder
Enrolled Agent / Tax Specialist
2007-01-07 07:10:45 · answer #4 · answered by WealthBuilder 4 · 0⤊ 0⤋
First of all. I don't have the slightest idea about your problem. I just wanted to give a Shout-out to a Fellow Viking Fan. And I'm all the way down in the ATL. Keep the faith!
2007-01-07 07:14:21 · answer #5 · answered by Goggles 7 · 0⤊ 0⤋
Either call the IRS, or wait until you get your forms and report it. You might find out from the IRS faster.
2007-01-07 07:08:54 · answer #6 · answered by Bud's Girl 6 · 0⤊ 1⤋
Nothin, just hit the road
2007-01-07 07:12:40 · answer #7 · answered by Bill A 3 · 0⤊ 1⤋