Iowa SSB1152 mandates state income tax withholding on sports wagering winnings if federal income tax is also withheld.

Iowa SSB1152 establishes that all winnings from sports wagering are considered Iowa earned income and are subject to state and federal income tax laws. If federal income tax is required to be withheld from sports wagering winnings, the bill mandates that Iowa state income tax also be withheld from those winnings. The bill amends existing tax code sections to include this requirement and specifies that the tax withheld must be remitted to the Department of Revenue on behalf of the winner. This bill takes effect on January 1, 2026.

Iowa SSB1152 mandates state income tax withholding on sports wagering winnings if federal income tax is also withheld.

Iowa SSB1152 establishes that all winnings from sports wagering are considered Iowa earned income and are subject to state and federal income tax laws. If federal income tax is required to be withheld from sports wagering winnings, the bill mandates that Iowa state income tax also be withheld from those winnings. The bill amends existing tax code sections to include this requirement and specifies that the tax withheld must be remitted to the Department of Revenue on behalf of the winner. This bill takes effect on January 1, 2026.