Section 280-RICR-20-55-8.7 - Treatment by TaxpayersA. Lottery Winnings 1. Effective July 1, 1989, winnings and prizes received from the Rhode Island Lottery are taxable under the provisions of the Rhode Island personal income tax (R.I. Gen. Laws § 44-30-1 et seq., as amended) and are includable in the income of both residents and nonresidents alike. Prior to that act, these winnings and prizes were exempt under R.I. Gen. Laws § 42-61-17.B. Nonresidents 1. Winnings and prizes from the Rhode Island Lottery and pari-mutuel betting events conducted or operated by a licensee in Rhode Island are specifically set out as parts of the Rhode Island income of a nonresident individual in R.I. Gen. Laws § 44-30-32(b)(1)(iii). a. As such, a nonresident must include them as items of income and deductions from Rhode Island sources in his or her calculation of Rhode Island personal income tax due.b. Nonresidents must take these amounts of Rhode Island source income and deductions into consideration when determining if a Rhode Island nonresident income tax return is required to be filed.c. If Rhode Island income tax has been withheld from the taxpayer's winnings and prizes and if, after calculation, the taxpayer has no Rhode Island tax liability, he or she must file a Rhode Island tax return to get a refund of the taxes withheld or to have the tax overpayment credited to the following year.C. Withholding 1. Effective July 1, 1989, winnings and prizes received from the Rhode Island Lottery and from pari-mutuel betting licensees in Rhode Island are subject to withholding provisions similar to 26 C.F.R. § 31.3402(q)-1 (2018).2. In order to receive a credit for Rhode Island taxes withheld, a taxpayer will be required to attach a copy of the W-2G to the Rhode Island tax return beginning with filings for any tax year ending on or after July 1, 1989.280 R.I. Code R. § 280-RICR-20-55-8.7