Revenue Ruling 21-94-1
Withholding

Supersedes Revenue Ruling 21-93-1

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Withholding Tax-Gambling Winnings.  NEBRASKA'S FLAT WITHHOLDING RATE ON GAMBLING WINNINGS SUBJECT TO FEDERAL WITHHOLDING IS 5.0 PERCENT OF THE WINNINGS.

Advice has been requested regarding what withholding rate Nebraska will impose on gambling winnings in conjunction with the issuance of the revised Circular EN for 1994.

The Nebraska withholding rate is 5.0 percent on all gambling winnings subject to federal withholding. The amount required to be withheld must be reported on Federal Form W-2G.

APPROVED:

M. Berri Balka
State Tax Commissioner

March 2, 1994