Alabama § 40-18-91 Wager Proceeds; Withholding of State Income Tax

Alabama Statutes

§ 40-18-91 — Wager Proceeds; Withholding of State Income Tax

Alabama § 40-18-91

JurisdictionAlabama

Title 40Revenue and Taxation

Ch. 18Income Taxes

Art. 2Withholding Tax; Optional Short Form Tax; Declaration of Estimated Tax

Div. 2Wage Winnings Withholding Tax

This text of Alabama § 40-18-91 (Wager Proceeds; Withholding of State Income Tax) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-18-91 (2026).

Text

(a)Each person making any payment of proceeds from a wager which constitutes “winnings subject to withholding” as defined by Section 40-18-90, shall deduct and withhold income tax in the amount of five percent of the payment.

(b)Each person making withholding of state income taxes as required by this division shall remit the same to the state Revenue Department in the same manner and at the same time as that provided for payments of other withheld income taxes as set out in Article 2, Chapter 18, of this title, and shall be subject to the same penalties as provided therein. Each person required to make withholding of state income taxes, who shall fail to do so, shall be personally liable for all amounts required to be withheld as provided in Sections 40-18-74, 40-18-76, 40-29-73 and 40-2

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(a) Each person making any payment of proceeds from a wager which constitutes “winnings subject to withholding” as defined by Section 40-18-90, shall deduct and withhold income tax in the amount of five percent of the payment.
(b) Each person making withholding of state income taxes as required by this division shall remit the same to the state Revenue Department in the same manner and at the same time as that provided for payments of other withheld income taxes as set out in Article 2, Chapter 18, of this title, and shall be subject to the same penalties as provided therein. Each person required to make withholding of state income taxes, who shall fail to do so, shall be personally liable for all amounts required to be withheld as provided in Sections 40-18-74, 40-18-76, 40-29-73 and 40-29-111.
(c) Any person receiving proceeds from a wager which constitutes winnings subject to withholding shall furnish the payer a statement, made under the penalties of perjury, which contains such information as shall be designated by the state Revenue Department as necessary to identify the recipient for tax compliance purposes.
(d) The payer shall furnish to the recipient a statement of the amount of winnings subject to withholding and the amount of tax withheld in accordance with procedures which shall be established by the state Revenue Department. Furthermore, the payer shall report to the Department of Revenue the payment of all such proceeds from wagers in those amounts as the same are required to be reported pursuant to 26 U.S.C. §6041, as amended from time to time.
(e) Each person for whom income tax was withheld pursuant to this division shall be entitled to a credit therefor against any income tax liability due this state as imposed by Chapter 18, Title 40.