Income withholding; gambling winnings
Sec. 8.2. (a) Each person in Indiana who is required under the
Internal Revenue Code to withhold federal tax from winnings shall
deduct and retain adjusted gross income tax at the time and in the
amount described in withholding instructions issued by the
department.
(b) In addition to amounts withheld under subsection (a), every
person engaged in a gambling operation (as defined in IC 4-33-2-10)
and making a payment in the course of the gambling operation (as
defined in IC 4-33-2-10) of:
(1) winnings (not reduced by the wager) valued at one thousand
two hundred dollars ($1,200) or more from slot machine play;
or
(2) winnings (reduced by the wager) valued at one thousand
five hundred dollars ($1,500) or more from a keno game;
shall deduct and retain adjusted gross income tax at the time and in
the amount described in withholding instructions issued by the
department. The department's instructions must provide that amounts
withheld shall be paid to the department before the close of the
business day following the day the winnings are paid, actually or
constructively. Slot machine and keno winnings from a gambling
operation (as defined in IC 4-33-2-10) that are reportable for federal
income tax purposes shall be treated as subject to withholding under
this section, even if federal tax withholding is not required.
(c) The adjusted gross income tax due on prize money or prizes:
(1) received from a winning lottery ticket purchased under
IC 4-30; and
(2) exceeding one thousand two hundred dollars ($1,200) in
value;
shall be deducted and retained at the time and in the amount
described in withholding instructions issued by the department, even
if federal withholding is not required.
As added by P.L.28-1997, SEC.16. Amended by P.L.192-2002(ss),
SEC.82.
Last modified: May 28, 2006