State of LA Income Tax and Gambling Income

[barosser]

Gambling income from the State of Louisiana from one of the Indian Casinos is this reportable and taxable to the State? They do not withhold the state tax that other casinos withhold? TP is a non resident

thanks

[JohnH]

I'm guessing that your client will owe tax on the net winnings (if any) in the client's state of residence only, with no offsetting credit for tax paid to LA (as would be the case for winnings which are taxed in LA).

[Pacun]

Withholding has nothing to do with the fact that income could be taxable. Please make sure that that income is not taxable to Non-residents.

[Gail in Virginia]

I'm guessing that your client will owe tax on the net winnings (if any) in the client's state of residence only, with no offsetting credit for tax paid to LA (as would be the case for winnings which are taxed in LA).

My guess would be that Indian casino's are considered federal lands that do not belong to the state that they happen to be contained within and that this is why state withholding does not take place. This would also make your answer correct. However, I don't have any experience with this issue to base this answer on so unless someone can be more definite I would do some research before relying on our guesses. :rolleyes:

[Cathy]

Gambling income from the State of Louisiana from one of the Indian Casinos is this reportable and taxable to the State? They do not withhold the state tax that other casinos withhold? TP is a non resident

thanks

Your client would definitely need to file a non-resident return as Louisiana taxes ALL gaming winnings within the state, Indian casino or not. And please do so quickly as our state legislators are having fun at the capitol giving $$ to their pet projects!