Are State Lottery Winnings Subject to Connecticut Income Tax?
If a winner is a resident of Connecticut (resident) and meets the gross income test (below), all gambling winnings, including State lottery winnings, are, to the extent includable in the winners federal adjusted gross income, subject to Connecticut income tax, whether or not the winnings are Connecticut Lottery winnings or from a wager placed in Connecticut or from any wagering transaction or gambling activity in Connecticut. If a residents winnings are reportable State lottery winnings (but not reportable Connecticut Lottery winnings), and the winner is required to file an income tax return and to pay income tax to the other state on those State lottery winnings, he or she is eligible to claim a credit against his or her Connecticut income tax for income tax paid to the other State on those reportable State lottery winnings. To claim the credit, he or she must file Form CT-1040, Connecticut Resident Income Tax Return, and complete Schedule 2, Credit for Income Taxes Paid to Qualifying
