|Posted: April 5, 2005, 11:07 pm - IP Logged|
Two tax related notes:
First, if you've won a prize between $600 and $5000 in the last few months, then you got a W-2G but didn't have any of your winnings withheld for federal taxes. For a while I thought, "this is great, I've got this money til next April 15!" but as it turns out, if you're going to claim a net profit on gambling at the end of the year, you probably need to file estimated taxes, which means sending the IRS a check for THIS YEAR's winnings by THIS April 15. I hear they're generally pretty lenient with people who earn money in fluky ways like winning the lottery or hitting it big at a casino, but somehow "IRS" and "lenient" don't seem quite right in the same sentence, so you might want to check out the info on estimated taxes at http://www.irs.gov/taxtopics/tc355.html
Second, I'm pretty outraged by how MA taxes gambling winnings. Namely, you can't deduct the amount you spend on lottery tickets. Seems pretty unfair to me. Any other MA people out there who want to write their state reps about this?