You should report your Pennsylvania taxable winnings on PA-40 Schedule T (PDF). If a Michigan resident erroneously had income tax withheld for a reciprocal state on salaries and wages earned there, it is the Michigan resident's responsibility to file a nonresident tax return with that state to get a refund of the tax withheld in error. In addition to federal taxes payable to the IRS, Pennsylvania levies a 3.07 tax on gambling income.
Residents of reciprocal states (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) working in Michigan, do not have to pay Michigan tax on their salaries or wages earned in Michigan. Earnings not included in your Michigan taxable income.Salaries and wages earned in a state that has a reciprocal agreement with Michigan or.The credit for taxes paid to another state is not available for: A local government unit outside Michigan, including tax paid to a city located in reciprocal states The tax rules are a bit different for casinos and sports betting, compared to the lottery.
Yes, if you are a Michigan resident, all of your income is subject to Michigan tax, no matter where it is earned, except income reported on federal schedule C, C-EZ, E or F earned from out-of-state business activity.Ī Michigan resident may qualify for a non-refundable tax credit for tax paid to another government unit outside of Michigan, including:
