Are gambling winnings taxable?

Published 01/25/2008 10:27 AM   |    Updated 05/14/2009 10:40 AM

Are gambling winnings taxable?

Gambling winnings are taxable income in Indiana.
- Full-year Indiana residents pay tax on all of their gambling winnings, including winnings from riverboats and pari-mutuel horse races (even those winnings from out-of-state sources).
- Nonresidents pay tax to Indiana on gambling winnings from Indiana's riverboats and pari-mutuel horse racing tracks.

Winnings from Indiana's lotteries (Hoosier Lotto, Lucky 5, etc.) are also subject to tax in Indiana by both residents and nonresidents. However, they may be eligible for a deduction on the income tax return. See the Indiana Lottery Winnings Deduction in the IT-40 or IT-40PNR instruction booklets or contact the Department.

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