Purpose: This Informational Publication answers frequently-asked questions about the Connecticut income tax treatment of gambling winnings other than lottery winnings from state-conducted lotteries (state lottery winnings). Frequently-asked questions about state lottery winnings are answered in Informational Publication 2005(16), Connecticut Income Tax Treatment of State Lottery Winnings Received by Residents and Nonresidents of Connecticut.
Effective Date: Upon issuance.
Statutory Authority: Conn. Gen. Stat. §§12-700 to 12-746.
DRS means the Department of Revenue Services.
IRS means the Internal Revenue Service.
Gambling winnings means and includes proceeds from a wager placed in a sweepstakes; wagering pool or lottery (other than state-conducted lottery); payments made to winners of poker tournaments on or after
1. Are gambling winnings subject to
Whether gambling winnings are subject to
If the winner is a resident of
If the winner is a part-year resident of Connecticut and meets the gross income test, gambling winnings are subject to Connecticut income tax to the extent includable in the winner’s federal adjusted gross income and to the extent received during the residency portion of the winner’s taxable year.
If the winner is a nonresident of
For information on whether an individual is a resident, nonresident, or part-year resident, see the instructions to the Connecticut income tax return for residents (Form CT-1040, Form CT-1040EZ, or Connecticut Telefile Tax Return) or the Connecticut income tax return for nonresidents or part-year residents (Form CT-1040NR/PY).
Gross income test
A winner must file a
$12,000 and the winner is filing separately;
$13,500* and the winner is filing single;
$19,000 and the winner is filing head of household; or
$24,000 and the winner is filing jointly or qualifying widow(er) with dependent child.
*This amount will be $14,000 for the 2010 taxable year; $14,500 for the 2011 taxable year; and $15,000 for the 2012 and subsequent taxable years.
A winner’s gross income includes all income received in the form of money, goods, property, and services not exempt from federal income tax and any additions required to be reported on Form CT-1040, Schedule 1. Gross income includes but is not limited to compensation for services including wages, fees, commissions, taxable fringe benefits, and similar items; gross income from a business; capital gains; interest and dividends; gross rental income; gambling winnings; alimony; taxable pensions and annuities; prizes and awards; income from partnerships, S corporations, estates, and trusts; individual retirement account distributions; unemployment compensation; and federally taxable Social Security benefits.
If a winner’s gross income does not exceed the applicable gross income threshold and
2. Are gambling losses deductible?
Gambling losses are not deductible for
3. May a resident or part-year resident claim a credit against his or her
income tax for income tax paid to another state on gambling winnings? Connecticut
No. Neither a resident nor part-year resident is eligible to claim a credit against his or her
The payer maintains an office or transacts business in
The payment is subject to federal income tax withholding; and
The payment is made to a resident or to someone receiving the payment on behalf of a resident.
For example, a dog track located within
The fact that federal or
5. Is a winner required to provide his or her name, address, and Social Security Number (SSN) to the payer?
Yes. A winner is required by federal law to complete federal Form W-2G, Certain Gambling Winnings, by providing his or her name, address, and SSN, and by signing the declaration of the form, under penalties of perjury, that the information provided is correct.
6. How is a winner’s residency status determined?
A payer of gambling winnings determines the residency status of a winner based upon the address furnished and the identification provided by the winner at the time federal Form W-2G is completed. The payer must additionally require two forms of identification from the winner including but not limited to a Social Security card or a driver’s license.
7. What if there is more than one winner?
If more than one person is entitled to a share of the winnings, one federal Form 5754, Statement by Person(s) Receiving Gambling Winnings, must be completed identifying each of the persons entitled to a share. Federal Form 5754 is also used when the recipient is not a person entitled to a share. This form will list the name, address, and taxpayer identification number of all persons entitled to any payment of the winnings. The form must be signed, under penalties of perjury, by the person or persons receiving the winnings. The payer uses the information on federal Form 5754 to prepare federal Form W-2G for each of the winners. A copy of federal Form 5754 must be retained by the payer. A copy of federal Form 5754 need not be submitted to DRS, but must be made available upon request. If the person receiving the winnings is unable to properly identify any of the persons entitled to a share of the winnings or their state of residence, the amount of the winnings applicable to the other person is considered to have been won by a resident of
8. Will payments of gambling winnings be reported to DRS?
If a payer of gambling winnings maintains an office or transacts business in
The fact that a payer may not have been required to report a payment of gambling winnings to the IRS does not excuse the winner from reporting those winnings for federal and
While payers of gambling winnings not maintaining an office or transacting business in
Effect on Other Documents: Informational Publication 2005(15), Connecticut Income Tax Treatment of Gambling Winnings Other Than State Lottery Winnings, is modified and superseded and may not be relied upon on or after the date of issuance of this Informational Publication.
Effect of This Document: An Informational Publication issued by DRS addresses frequently-asked questions about a current position, policy, or practice, usually in a less technical question and answer format.
For More Information: Call DRS during business hours, Monday through Friday:
calls outside the Greater Hartford calling area only); or Connecticut
860-297-5962 (from anywhere).
Select Option 6 to speak to a representative.
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
Forms and Publications: Forms and publications are available anytime by:
Internet: Visit the DRS website at www.ct.gov/DRS to download and print
tax forms; or Connecticut
Telephone: Call 1-800-382-9463 (
calls outside the Greater Hartford calling area only) and select Option 2 or call 860-297-4753 (from anywhere). Connecticut
Paperless Filing/Payment Methods (fast, easy, free, and confidential):
Business and individual taxpayers can use the Taxpayer Service Center (TSC) to file a variety of tax returns and extensions, as well as to pay taxes or bills over the Internet. Visit the DRS website at www.ct.gov/DRS and select an option from the list on the TSC image.
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