Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 55 - Personal Income Tax
Part 8 - Lottery and Pari-Mutuel Winnings and Prizes (280-RICR-20-55-8)
Section 280-RICR-20-55-8.7 - Treatment by Taxpayers
Universal Citation: 280 RI Code of Rules 20 55 8.7
Current through September 18, 2024
A. Lottery Winnings
1. Effective July 1, 1989, winnings and
prizes received from the Rhode Island Lottery are taxable under the provisions
of the Rhode Island personal income tax (R.I. Gen. Laws §
44-30-1 et
seq., as amended) and are includable in the income of both residents and
nonresidents alike. Prior to that act, these winnings and prizes were exempt
under R.I. Gen. Laws §
42-61-17.
B. Nonresidents
1. Winnings and prizes from the Rhode Island
Lottery and pari-mutuel betting events conducted or operated by a licensee in
Rhode Island are specifically set out as parts of the Rhode Island income of a
nonresident individual in R.I. Gen. Laws §
44-30-32(b)(1)(iii).
a. As such, a nonresident must include them
as items of income and deductions from Rhode Island sources in his or her
calculation of Rhode Island personal income tax due.
b. Nonresidents must take these amounts of
Rhode Island source income and deductions into consideration when determining
if a Rhode Island nonresident income tax return is required to be
filed.
c. If Rhode Island income
tax has been withheld from the taxpayer's winnings and prizes and if, after
calculation, the taxpayer has no Rhode Island tax liability, he or she must
file a Rhode Island tax return to get a refund of the taxes withheld or to have
the tax overpayment credited to the following year.
C. Withholding
1. Effective July 1, 1989, winnings and
prizes received from the Rhode Island Lottery and from pari-mutuel betting
licensees in Rhode Island are subject to withholding provisions similar to 26 C.F.R. § 31.3402(q)-1 (2018).
2. In order to receive a credit for Rhode
Island taxes withheld, a taxpayer will be required to attach a copy of the W-2G
to the Rhode Island tax return beginning with filings for any tax year ending
on or after July 1, 1989.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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