Ace2
Ace2
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December 16th, 2021 at 3:43:58 PM permalink
OnceDear,

I may have commented on this before, but essentially EVERYTHING is taxable for US citizens/residents. If you make or gain money in any way, 99.999% chance it’s taxable…if you move into a new house and find a million dollars buried in the backyard, it’s taxable. And it doesn’t matter if you live abroad for years…you still owe US taxes

And regarding the NHS, I’ve heard that there can be extremely long waiting times to see a doctor or get an MRI. Not sure how true it is
It’s all about making that GTA
OnceDear
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December 16th, 2021 at 4:08:59 PM permalink
Quote: Ace2

OnceDear,

I may have commented on this before, but essentially EVERYTHING is taxable for US citizens/residents. If you make or gain money in any way, 99.999% chance it’s taxable…if you move into a new house and find a million dollars buried in the backyard, it’s taxable. And it doesn’t matter if you live abroad for years…you still owe US taxes

And regarding the NHS, I’ve heard that there can be extremely long waiting times to see a doctor or get an MRI. Not sure how true it is
link to original post

I don't claim to understand US taxes, but did I read of situations where you could churn some bankroll multiple times, receive W2Gs on the wins, but potentially not be allowed to cancel wins and losses out? It should surely be that you get to offset losses?
And you have state taxes too, with different rules by state? I realise that All a US citizens income is taxed, wherever in the world it is derived. Our HMRC don't want to have to give rebates on losses and realise that on aggregate, we punters lose. So they just stay the hell out of it. They simply tax casinos on their profits. Probably rethinking as we now take our gambling off shore.

Sidenote. Our NHS is what I'd refer to as 'acceptable quality at appropriate cost.' Not state of the art for everything and no MRI's on a whim. Preventative check-ups a bit spartan. Most urgent treatments are handled quickly enough. All basic and essential treatment available to an OK standard. It wasn't and isn't always so. Private healthcare available too for those that want it. We Brits love NHS, but it's not perfect by a long stretch. Speaking of stretch. our hospitals and ER departments are very stretched now. I can see a doctor within 2 days for most things. Never had an MRI, but elderly parent had a TIA. Rushed to hospital and had brain MRI same night.
Psalm 25:16 Turn to me and be gracious to me, for I am lonely and afflicted. Proverbs 18:2 A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
Dieter
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Dieter
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December 16th, 2021 at 4:33:09 PM permalink
Quote: OnceDear

I can see a doctor within 2 days for most things.
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Having experienced US model healthcare and "other places", I much prefer other places.
May the cards fall in your favor.
Ace2
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December 16th, 2021 at 4:51:58 PM permalink
You must be referring to online gambling, which I’m not familiar with.

I’d bet only a very small percentage (if even one percent) of US casino gamblers report anything on their taxes.

Most people are walking into a casino with not that much cash and walking out with not much cash. All cash off the books, not really material and usually a net loss for the year. An exception would be if, for instance, you hit a large slot machine jackpot that generates a tax statement right there (so I’ve heard anyway)

Now if you’re playing at a level where you’re withdrawing/depositing tens of thousands of dollars in your bank account…that could raise questions…but very few people, relative to the total, are playing at that level

My experience with state taxes is that they just take your federal tax due, apply a percentage, make a few adjustments, and that’s it
It’s all about making that GTA
SOOPOO
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December 17th, 2021 at 6:36:38 AM permalink
Quote: Ace2



My experience with state taxes is that they just take your federal tax due, apply a percentage, make a few adjustments, and that’s it
link to original post



I think you are very wrong. There have been threads detailing the extreme differences from state to state. That if you are from certain states you really can’t effectively wash your wins away with losses.
DRich
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December 17th, 2021 at 7:10:15 AM permalink
Quote: SOOPOO

Quote: Ace2



My experience with state taxes is that they just take your federal tax due, apply a percentage, make a few adjustments, and that’s it
link to original post



I think you are very wrong. There have been threads detailing the extreme differences from state to state. That if you are from certain states you really can’t effectively wash your wins away with losses.
link to original post



That is very true. Some states do not care about the losses at all, just pay your taxes on the winnings and be done.

What surprises me is how many people gamble without first thinking of the tax implications. I personally can't wait to pay my taxes when I win the Powerball.
At my age, a "Life In Prison" sentence is not much of a deterrent.
billryan
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December 17th, 2021 at 9:13:05 AM permalink
Quote: DRich

Quote: SOOPOO

Quote: Ace2



My experience with state taxes is that they just take your federal tax due, apply a percentage, make a few adjustments, and that’s it
link to original post



I think you are very wrong. There have been threads detailing the extreme differences from state to state. That if you are from certain states you really can’t effectively wash your wins away with losses.
link to original post



That is very true. Some states do not care about the losses at all, just pay your taxes on the winnings and be done.

What surprises me is how many people gamble without first thinking of the tax implications. I personally can't wait to pay my taxes when I win the Powerball.
link to original post



What surprises me is how many people live life without thinking of taxes. As if the Federal and state governments have a right to thirty percent of your income. How they would rather pay dollars to the government instead of a dime to someone who could reduce their burden substantially. They grouse about the government taking part of their gambling winnings while thousands are withheld from their paychecks.
The difference between fiction and reality is that fiction is supposed to make sense.
Ace2
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December 17th, 2021 at 9:46:40 AM permalink
About half of Americans pay zero federal income tax
It’s all about making that GTA
DRich
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December 17th, 2021 at 11:24:52 AM permalink
Quote: Ace2

About half of Americans pay zero federal income tax
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If that is true it surprises me. I know some super rich don't pay any and the lowest income people may not but I would assume the majority of income earners do pay some income tax.

Does that 50% number include children that have no income?

Another chance for me to promote one of my favorite books:

At my age, a "Life In Prison" sentence is not much of a deterrent.
Ace2
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December 17th, 2021 at 12:12:23 PM permalink
https://www.washingtonpost.com/blogs/wonkblog/post/why-do-half-of-all-americans-pay-no-federal-income-taxes/2011/07/11/gIQA8olBuI_blog.html

Says 46% of US households pay no federal taxes. Actually not so hard to believe when you consider (approximate numbers): median household income is $68,000, the standard deduction for a family is $25,000, then lots of families get child credits and/or earned income credit that are worth $thousands
It’s all about making that GTA
SOOPOO
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December 17th, 2021 at 2:15:19 PM permalink
Quote: Ace2

https://www.washingtonpost.com/blogs/wonkblog/post/why-do-half-of-all-americans-pay-no-federal-income-taxes/2011/07/11/gIQA8olBuI_blog.html

Says 46% of US households pay no federal taxes. Actually not so hard to believe when you consider (approximate numbers): median household income is $68,000, the standard deduction for a family is $25,000, then lots of families get child credits and/or earned income credit that are worth $thousands
link to original post



A family of 4 with a single wage earner making $40k (likely) pays no federal taxes. This assumes you don’t count FICA as a federal tax. That roughly translates to guy making $20 an hour. I’ll let Paco tell me how many jobs pay that or less, but it has to be in tens of millions.
Ace2
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December 17th, 2021 at 2:43:57 PM permalink
40k? More like $80k or even higher

80k less 25k standard deduction is 55k. The tax on 55k (all at 10 or 12%) is about $6k tax liability. Less $3k per child credit (assume 2 children) is net tax liability of zero.

And it’s probably closer to $90k tax free since that family is likely paying $10k per year in health insurance premiums, which are deducted from gross income for tax purposes. Could even be $110k tax free if the family is maxing their 401k contributions (doubtful) at about $20k per year, also deducted from taxable income

@OnceDear: There are definitely parts of the US tax code I don’t like, especially that capital gains are taxed, but you must agree that 0% tax on $100k income (for some people) is a pretty good deal
Last edited by: Ace2 on Dec 17, 2021
It’s all about making that GTA
throwaway95
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January 22nd, 2022 at 11:21:42 AM permalink
I am finally back after the 30 days. I am getting $1,000,000 in W2G's from the 2 days I had my crazy day. I have also started getting session results from the online casinos. The W2G's are from 2 days where the sessions were negative and I believe my accountant is OK with using session accounting.
ThatDonGuy
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January 22nd, 2022 at 1:32:12 PM permalink
Quote: Ace2

40k? More like $80k or even higher

80k less 25k standard deduction is 55k. The tax on 55k (all at 10 or 12%) is about $6k tax liability. Less $3k per child credit (assume 2 children) is net tax liability of zero.

And it’s probably closer to $90k tax free since that family is likely paying $10k per year in health insurance premiums, which are deducted from gross income for tax purposes. Could even be $110k tax free if the family is maxing their 401k contributions (doubtful) at about $20k per year, also deducted from taxable income
link to original post


Tax on a joint return if the couple makes betweein $20,000 and $81,000 is about 12% of the total, minus $400.

Er, aren't health insurance premiums deductible (a) only if you itemize, and (b) even then, only the amount (plus anything you spent directly on medical bills) that exceeds 7.5% of your income (which, for a family making $90K, is $6750)?

On the other hand, remember that the $3000 (actually $3600 for a child under 6 at the end of the year, and $3000 for a child between 6 and 17) is a credit; if your calculated tax is less than that, the difference is a tax refund.
Ace2
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January 22nd, 2022 at 2:33:37 PM permalink
Going by memory, I think health insurance premiums are deducted at W2 level, so your gross income reported on your tax return is net of the premiums

Medical expenses themselves must be itemized and must exceed a floor to be deducted. I think
It’s all about making that GTA
ThatDonGuy
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January 22nd, 2022 at 3:59:12 PM permalink
Quote: Ace2

Going by memory, I think health insurance premiums are deducted at W2 level, so your gross income reported on your tax return is net of the premiums


You are referring to employer-provided health care - but in that case, should that be included in your salary numbers? (i.e. when you say "90K," you mean, "80K plus 10K worth of insurance premiums")
terapined
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February 28th, 2024 at 4:26:34 PM permalink
Does anybody have a recommendation for someone or someplace in Vegas that does taxes
FL resident
Just have to file a federal return
My cousin always did my taxes and passed away
Mine are fairly simple and I should do them myself
But prefer a pro to make sure I'm not missing anything
Any recommendations
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