People who gamble in or live in CT, IL, IN, KS, MA, MI, NC, OH, RI, WV, WI: how do you do it?
have to pay self-employment tax
but can deduct some expenses
Quote: RomesUm, I live in one of these states. My accountant deducted losses against my W2 winnings last year on my taxes in the proper section of the return...
"can't deduct gambling losses on state return" is pretty straightforward - you better check with that guy or maybe take a peak at the copies he gave you
Quote: odiousgambitdon't gamble in such a way as to get w2g's. especially, don't play slots
If I play blackjack (no W2G): win $1000 on Friday, but lose $1000 on Sunday. How much state tax would I owe: tax on $1000 or $0?
Quote: AvincowIf I play blackjack (no W2G): win $1000 on Friday, but lose $1000 on Sunday. How much state tax would I owe: tax on $1000 or $0?
well, I certainly would *not* claim that the tax rules would *not* have you report you won $1000 whether you got a W2g or not. And if your state is 'one of the states' you would not be able to deduct the $1000 loss.
If you don't know what I mean when I say to avoid the W2g's , what the reason is, then we will just let it be a secret amongst those that don't have to have it explained.
Quote: AvincowIf I play blackjack (no W2G): win $1000 on Friday, but lose $1000 on Sunday. How much state tax would I owe: tax on $1000 or $0?
I agree with OG - why provide info about wins when there is no proof?
More than that, why define a session as a day? Is that in the law? Play a hand, win, owe tax. Play another hand, lose, can't net... I'd try to claim an annual session with a net win that cannot be negative (this has the same effect as netting losses)
Quote: RomesUm, I live in one of these states. My accountant deducted losses against my W2 winnings last year on my taxes in the proper section of the return...
I have filed in your state. There is an add-back that is supposed to happen when transitioning from the 1040 to the state form. The size of that adjustment depends on your filing status, documentation, and boldness.
Quote: rdw4potusI agree with OG - why provide info about wins when there is no proof?
More than that, why define a session as a day? Is that in the law? Play a hand, win, owe tax. Play another hand, lose, can't net... I'd try to claim an annual session with a net win that cannot be negative (this has the same effect as netting losses)
If you navigate to the gambling section of the IRS webpage, they say that a gambling session is 1 continuous gambling activity. That is a bit vague, but i think anyone would interpret that to mean: if you go to sleep, your gambling session has ended. Further, they do actually explicitly state that a gambling session cannot last more than 24 hours.
Quote: AvincowIf you navigate to the gambling section of the IRS webpage, they say that a gambling session is 1 continuous gambling activity. That is a bit vague, but i think anyone would interpret that to mean: if you go to sleep, your gambling session has ended. Further, they do actually explicitly state that a gambling session cannot last more than 24 hours.
But the IRS does allow losses to be netted off. So I'm not so concerned with their definition of one session. What do the state laws say?
