Indiana Lottery Winnings Deduction

Article ID: 34528  

Question
Indiana Lottery Winnings Deduction

Answer
If you win any prize money from the Indiana Hoosier Lottery Commission, either by winning an instant game, an online game such as Hoosier Lotto, Powerball, Lucky 5, Daily 3 & 4, Max 5, etc., you must report those winnings as income on your federal income tax return.Most of these winnings are fully taxable by Indiana. However, some of the winnings may be exempt from Indiana tax. Also, annuity payments received for drawings held before July 1, 2002, are exempt from Indiana tax.

Note: Winnings from other state lotteries, Indiana pari-mutuel horse races or out-of-state tracks, Indiana and out-of-state riverboats and other gambling winnings, are fully taxable in Indiana and should not be deducted from your taxable income.
The maximum allowable deduction is up to $1,200 per qualifying
W-2G. Complete the worksheet below to see if you are both eligible for
a deduction and, if so, how to figure it.

 


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Views: 559 Created on: Jun 15, 2013