beachbumbabs
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beachbumbabs
Joined: May 21, 2013
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prozema
June 24th, 2019 at 3:32:08 AM permalink
Quote: prozema

I thought all gambling was illegal in Hawaii?
Seems odd to tax something that's not legal.



If you live or work in Hawaii, you're subject to this tax, though some don't have to pay it (like me: I was legally TDY - temporary duty- there, so they took it each year,.and I got it refunded each year. My job didn't qualify for it, but I was considered a legal resident for tax withholding purposes.

Even if you can't gamble in Hawaii (and you can't, legally, but there are big games underground), if you LIVE there, it depends on your profession whether you're taxed on this demand. I guess professional gambler is one that is.
If the House lost every hand, they wouldn't deal the game.
prozema
prozema
Joined: Oct 24, 2016
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June 24th, 2019 at 7:14:44 AM permalink
Quote: beachbumbabs

If you live or work in Hawaii, you're subject to this tax, though some don't have to pay it (like me: I was legally TDY - temporary duty- there, so they took it each year,.and I got it refunded each year. My job didn't qualify for it, but I was considered a legal resident for tax withholding purposes.

Even if you can't gamble in Hawaii (and you can't, legally, but there are big games underground), if you LIVE there, it depends on your profession whether you're taxed on this demand. I guess professional gambler is one that is.



Sheesh... I think we need an exception to personal insult rules if directed twords legislators.
ROYALPIRATE
ROYALPIRATE
Joined: Jan 10, 2017
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beachbumbabs
June 24th, 2019 at 8:21:24 AM permalink
Quote: Indy70

I believe this is incorrect, in Ohio you have to use AGI from federal. No deductions for losses. Also each city that the casino is registered in gets their cut of taxes on all jackpots. No recourse.

When Ohio legalized casino gambling in 2010, they also added a deduction for gambling losses effective January 1, 2013. Taxdood reported that the new budget signed into law repeals this deduction. He believes itís retroactive; I can confirm that it is retroactive. This is bad news for amateur Ohio gamblers, but will have no impact for professional gamblers; professional gamblers can take gambling losses (up to the amount of their winnings) on their Schedule C.

Here is the list of bad states for gamblers with the reasons why:

Connecticut [1]
Hawaii [2]
Illinois [1]
Indiana [1]
Massachusetts [1]
Michigan [1]
Minnesota [3]
Mississippi [4]
New York [5]
Ohio [1] [6]
Washington [7]
West Virginia [1]
Wisconsin [1]

NOTES:

1. CT, IL, IN, MA, MI, OH, WV, and WI do not allow gambling losses as an itemized deduction. These statesí income taxes are written so that taxpayers pay based (generally) on their federal Adjusted Gross Income (AGI). AGI includes gambling winnings but does not include gambling losses. Thus, a taxpayer who has (say) $100,000 of gambling winnings and $100,000 of gambling losses will owe state income tax on the phantom gambling winnings. (Michigan does exempt the first $300 of gambling winnings from state income tax.)

2. Hawaii has an excise tax (the General Excise and Use Tax) thatís thought of as a sales tax. It is, but it is also a tax on various professions. A professional gambler is subject to this 4% tax (an amateur gambler is not).

3. Minnesotaís state Alternative Minimum Tax (AMT) negatively impacts amateur gamblers. Because of the design of the Minnesota AMT, amateur gamblers with significant losses effectively cannot deduct those losses.

4. Mississippi only allows Mississippi gambling losses as an itemized deduction.

5. New York has a limitation on itemized deductions. If your AGI is over $500,000, you lose 50% of your itemized deductions (including gambling losses). You begin to lose itemized deductions at an AGI of $100,000.

6. Ohio currently does not allow gambling losses as an itemized deduction. However, effective January 1, 2013, gambling losses will be allowed as a deduction on state income tax returns. Unfortunately, those gambling losses will not be deductible on city or school district income tax returns, so Ohio will remain a bad state for amateur gamblers. Because of the rescinding of the law allowing gambling losses as a deduction, Ohioans cannot deduct gambling losses on their state, city, or school district returns.

7. Washington state has no state income tax. However, the state does have a Business & Occupations Tax (B&O Tax). The B&O Tax has not been applied toward professional gamblers, but my reading of the law says that it could be at any time.



Add NC under category 1.
Sandybestdog
Sandybestdog
Joined: Feb 3, 2015
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June 24th, 2019 at 1:38:25 PM permalink
Democrat politicians think all the money is theirs to begin with to pay for pet projects to buy votes. Anything you get to keep after that is simply out of the kindness of their heart.

I have several hundred thousand in w2gís from last year from about 8 different states. I paid estimated taxes and filed an extension. If I canít write off my losses, I will be broke.
MaxPen
MaxPen
Joined: Feb 4, 2015
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prozema
June 24th, 2019 at 1:46:34 PM permalink
Quote: Sandybestdog

Democrat politicians think all the money is theirs to begin with to pay for pet projects to buy votes. Anything you get to keep after that is simply out of the kindness of their heart.

I have several hundred thousand in w2gís from last year from about 8 different states. I paid estimated taxes and filed an extension. If I canít write off my losses, I will be broke.



Not sure why you wouldn't be able to write off losses. After the first 24k worth of W2g's and losses you meet the standard deduction qualifications, I think. Maybe not?
prozema
prozema
Joined: Oct 24, 2016
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June 24th, 2019 at 2:10:53 PM permalink
I always thought it was interesting that casinos issue w-2's and not 1099s when you hit a jackpot. Seems backwards...

W2s imply employment.
1099s imply independent income.

I guess I just assigned myself a Google search.
TheOKCPanda
TheOKCPanda
Joined: May 26, 2019
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June 24th, 2019 at 2:46:07 PM permalink
Quote: sabre

If Gray is too stupid to know the meaning of "loophole", how did he get elected?



It says more about the voters of California than it does about him

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