Indiana Lottery Winnings Annuity Deduction 629
The Indiana Lottery Winnings Annuity Deduction (Code 629) allows certain nonresident individuals to deduct annuity payments received from a winning Hoosier Lottery ticket, under specific conditions.
Eligibility Criteria
- Applies only to prizes won from the Hoosier Lottery Commission.
- Only for lotteries held before July 1, 2002.
- Payments must be received as annuity installments.
- Proceeds from other state lotteries, casinos, or gambling sources are not deductible.
- Prizes won in lotteries held after June 30, 2002 are not eligible for this deduction.
How to Claim the Deduction
- Report the income on Schedule A, line 20B of your Indiana state tax return.
- Enter deduction code 629 on Schedule C, line 11 if claiming this deduction.
- The full amount of the annuity payment received while residing in Indiana may be deductible, as demonstrated in the example of Jennifer who won $2,000,000 in 2002 and received $100,000 annually.
Important Notes
- This deduction is available only for Indiana residents who received the annuity payments while living in Indiana.
- The deduction is not available for winnings from lotteries held after June 30, 2002.
- Only Hoosier Lottery winnings qualify; other lottery or gambling proceeds are excluded.
Source:
Form IT-40PNR Instructions
Form IT-40 Instructions
Disclaimer: Always verify with the official Federal or State Department of Revenue Forms and Instructions for the most accurate and up-to-date information.