How Do Taxes Work Out of State?

Home » Recent Posts » How Do Taxes Work Out of State?
Share this on:

Tax forms on a table

We get a lot of questions about taxes. We’re not accountants, and will always advise people to consult with an accountant familiar with gambling tax rules, but we will always do our best to offer some general guidance where we can. 

Here’s an example of a question we’ve received on the subject:

Regarding taxes. If you are a California resident but win hand pays in a different state, what is the rule? For example, we won three hand pays in Reno, NV in one weekend but we’re never asked if we wanted taxes taken out. Is there an exception because it was in another state?

Treiva

Thanks for the question! When it comes to taxes there are three considerations:

  • Federal taxes, which is consistent wherever you are in the United States.
  • The state tax requirements in the state you live
  • The state tax requirements in the state you are playing

If you’re out of state, you may not be given the option to deduct state taxes for your home state. In some states, like Nevada, where there is no state income tax to speak of, you may not even be asked if you want any taxes deducted from your jackpot.

What that means is you’ll have to pay the taxes when you file with your home state, so you should be prepared to set a portion of that aside. In this way you won’t be caught unprepared and scrambling for a few extra dollars come tax time.

Keep in mind the state you gamble may have its own filing requirements. Winning a jackpot in Massachusetts, for instance, even if you’re out of state, requires you to file with Massachusetts, which means you would be filing in multiple states, and the expenses that goes along with that.

Jackpots can be an exciting experience, but it certainly creates its share of paperwork as well when it comes to tax time.

Have a question? Submit yours here!


Share this on:

4 Replies to “How Do Taxes Work Out of State?”

  • Phillip Bogoslowski says:

    Another part of this is if you are Canadian. If you win a jackpot in Nevada at least, you automatically lose the taxes amount. So if you win $3400, then you will get paid approximately $2300. But you can file the proper forms which can be pricey, but you can get the taxes back. I’ve heard it can be a couple hundred to fill out the proper paperwork the first time, but I’m unsure at the moment. I’m going to be doing this for a handpay I got last February for the first time.

    • FlipTheSwitch.com says:

      Good point Philip – some countries’ players do get taxed upfront, but can request it be refunded. We’ve also spoken to players who work with third-party firms who do all the work for them – while a cost, it ensures it’s done right and they get the bulk of the money back.

  • PAMELA ROHS-GOLD says:

    Recently I saw one person win a hand pay on a slot machine but then had his friend switch seats and pretend he won it….is there a problem with that legally ?

    • FlipTheSwitch.com says:

      Thanks for the question! There are casinos that will check the cameras to avoid any issues like this – there’s even been stories about how the casino will roll back the tape and say that because person X hit the button, they have to claim the jackpot. Technically if person A hits the button and person B claims it, it’s leading the casino to file inaccurate tax documents, but like many things some will simply be more strict bout it than others.

Leave a Comment

Your email address will not be published. Required fields are marked *

Play Online Casinos

Sign Up and get a Deposit Match up to $1,000, plus $25 in Site Credits on the house! Available in MI, NJ, PA & WV. US promotional offers not valid in Ontario.

Use code SWITCH2500 for a 100% deposit match up to $2,500, and 2,500 Reward Credits, with $25+ in wagers placed (MI, NJ, PA & WV).

New sign-ups get $35 Casino Credits + Up to $100 Deposit Match in Casino Credits (w/$5 min dep, 1X PTR)

Sign Up and deposit $10+ to get a Welcome Offer of Site Credits up to $1,000 to Play it Again in MI, NJ, PA & WV based on net loss from your first 24 hours of play. 

Play Social Casinos

Ready to give it a try? Get 10 million coins to play Show Me Vegas Slots with promo code SWITCH!

New players get 60 million coins for signing up! All players will receive 5 million coins free (one time only).

Sign Up and get a Welcome Bonus of 2,000,000 FREE Gold Coins & 2 FREE Sweeps Coins. Get started today!

Sign Up for LuckyLand Slots and get a Welcome Bonus of 7,777 FREE Gold Coins & 10 FREE Sweeps Coins!

Online Game Spotlight
Jinse Dao Dragon Slot Machine

A Different Approach to Collecting Prizes on Reels

88 Drums

Bonus Chasing Game, Especially with Power Bets

Play Online Sportsbooks

Sign Up to get a Bet $5, Get $150 in Bonus Bets if your bet wins!

Use code SWITCH1000 to get your first bet back in Bonus Bets, up to $1,000, if you lose.

​SIGN UP and make a bet of $5+ to get $150 instantly in Bonus Bets!

New Players get a $50 Bonus Bet w/ $5 Deposit Plus No Sweat First Bet Up to $1,000 + All Sport SGP Insurance! New players outside MA also get 20% Match up to $1,000 (25x PTR).

Social Game Spotlight
Lucky Buddha

Multipliers for Multiple Line Hits