Maryland Comptroller Issues Tips on Individual Income Taxability of Gambling Winnings

The Maryland Comptroller April 1 issued tips on the individual income tax treatment of gambling winnings. The information includes that: 1) individuals must pay income tax on prize money won from lottery games, racetrack betting, or gambling; 2) income tax will be automatically withheld if the winnings exceed $5,000; 3) individuals must file Form 502D, Declaration of Estimated Tax, if the winnings exceed $500; 4) tax must be paid on the income within 60 days of receiving the prize money; and 5) taxpayers can claim a credit for taxes paid with Form 502D on the annual income tax return. [Md. ...