Gambling winnings reported on a W-2G, 1099, or other informational return from Mississippi casinos are subject to a three percent (3%) non-refundable income tax. The casinos withhold the tax at the time of payout.
Taxes withheld by Mississippi casinos as a result of gambling winnings are not refundable in Mississippi. Mississippi residents are not required to report Mississippi gambling winnings as income on their state return. Out-of-state residents are not required to file a return if the only income earned in Mississippi was Mississippi gambling winnings.
The amount withheld is non-refundable to the taxpayer. Section 27-7-901 of the Mississippi Code provides that the amount of winnings reported on W-2G, 1099 or other informational return from Mississippi casinos are not included in Mississippi income and no income tax credit is allowed for the amount of withholding.
A non-resident taxpayer with only Mississippi gambling winnings and/or losses should not file a Mississippi tax return. The document provided by the casino is considered the income tax return for this type of Mississippi income and therefore is proof that the tax was paid to Mississippi.
Additional Information:
Mississippi DOR FAQ
Mississippi State Tax Information