Iowa HSB733 modifies state income tax withholdings for slot machine winnings, requiring withholding only if reported on a federal information return.

Iowa HSB733 changes the state income tax withholding rules for slot machine winnings. Currently, state income tax is withheld from slot machine winnings exceeding $1,200. The bill removes the $1,200 threshold and requires withholding only if the winnings are reported on an information return for federal purposes. An information return is a document that provides information to the federal Internal Revenue Service but does not calculate the amount of tax owed. The bill takes effect immediately upon enactment.

Iowa HSB733 modifies state income tax withholdings for slot machine winnings, requiring withholding only if reported on a federal information return.

Iowa HSB733 changes the state income tax withholding rules for slot machine winnings. Currently, state income tax is withheld from slot machine winnings exceeding $1,200. The bill removes the $1,200 threshold and requires withholding only if the winnings are reported on an information return for federal purposes. An information return is a document that provides information to the federal Internal Revenue Service but does not calculate the amount of tax owed. The bill takes effect immediately upon enactment.