Tax Type
Individual Income Tax
Description
Maryland lottery winnings; Out-of-state tax credit
Topic
Credits
Taxable Income
Date Issued
04-04-1985
April 4, 1985
Dear ****
Thank you for your letter of March 11, 1985 concerning Virginia's taxation of income received from the Maryland lottery by one of your constituents.
If your constituent is a Virginia resident and receives income from a Maryland lottery, that income is taxable by Virginia. A Virginia out-of-state tax credit is not allowed on this income for any taxes paid to Maryland. However, if your constituent would file a Maryland nonresident tax return, an out-of-state tax credit will be allowed on the Maryland return. Therefore, the lottery income will not be taxed by both states.
Let me know if I can be of further assistance to you.
Sincerely,
W. H. Forst
Tax Commissioner
Dear ****
Thank you for your letter of March 11, 1985 concerning Virginia's taxation of income received from the Maryland lottery by one of your constituents.
If your constituent is a Virginia resident and receives income from a Maryland lottery, that income is taxable by Virginia. A Virginia out-of-state tax credit is not allowed on this income for any taxes paid to Maryland. However, if your constituent would file a Maryland nonresident tax return, an out-of-state tax credit will be allowed on the Maryland return. Therefore, the lottery income will not be taxed by both states.
Let me know if I can be of further assistance to you.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner