Mississippi Administrative Code
Title 35 - Department of Revenue
Part 3 - Income and Franchise
Subpart 03 - Exclusions from Gross Income
Chapter 09 - Gaming Winnings and Gaming Income
Section 35-3-03-09-102 - Mississippi Gaming Winnings
Current through September 24, 2024
1. A tax levy of three percent (3%) is made on all Mississippi gaming winnings. Such amount is required to be withheld by the Mississippi gaming establishment. The amount of tax withheld from gaming winnings will be reflected on Federal Form W-2G or other information return filed by the gaming establishment to report the transaction. The amount to be withheld is three percent (3%) of the amount paid, whether in cash or other form, to the recipient.
2. Multi-period payoffs: If a patron is entitled to receive either a lump-sum payment or a series of periodic payments received at least annually, then a tax of three percent (3%) is levied on the lump-sum amount in the year it is constructively received. The three percent (3%) levy is a liability of the Mississippi gaming establishment which was a party to the wager, regardless of whether it is the paying agent.
3. The three percent (3%) withheld on Mississippi gaming winnings reflects the tax due and once such proper amounts are remitted to the Department of Revenue by the Mississippi gaming establishment, as well as a properly completed W-2G, 1099, or other federally prescribed informational statement (filed annually or as prescribed by the Commissioner), the patron has no further filing requirements. If the federally prescribed information return does not allow for the recording of both state income and state tax withholdings, then a W-2G should be completed and attached as part of the filing of such statement.
4. The W-2G or 1099 reflecting the income and Mississippi withholding once remitted by the Mississippi gaming establishment to the Department of Revenue serves as the patrons return filing for such income. Accordingly, Mississippi gaming winnings are not reported on the patron's regular income tax return filing. Likewise, the amounts withheld cannot be claimed on an income tax return filing to offset a tax liability, create a refund, or to generate any other type of credit or offset.
