Welcome Guest
Log In | Register )
You last visited December 10, 2016, 11:02 pm
All times shown are
Eastern Time (GMT-5:00)

Taxes

Topic closed. 3 replies. Last post 12 years ago by Bingo Long.

Page 1 of 1
PrintE-mailLink
Avatar
MA
United States
Member #11452
February 14, 2005
74 Posts
Offline
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?

    dvdiva's avatar - 8ball

    United States
    Member #2338
    September 17, 2003
    2063 Posts
    Offline
    Posted: April 5, 2005, 11:55 pm - IP Logged

    yeah - like they care. I really doubt MA will do anything except raise your tax. Your option is to move to a state with no income tax or put up with it. Better deduct 35% for tax - better to get a refund since if you withhold too little there are stiff penalties and you'll just owe more tax.

      four4me's avatar - gate1
      MD
      United States
      Member #1701
      June 18, 2003
      8366 Posts
      Offline
      Posted: April 6, 2005, 1:35 am - IP Logged

      Bingo Long

      I thought if you won a taxable amount over 600 dollars that you can deduct up to a certain percentage of what you have to  pay them in taxes for the win by claming losses generated after the win and up to the taxable amount of your winnings before the tax is due. This is permitted only for people who itemize deductions. In other words you can't get all the tax money you paid them for the win but something like 85%. I'm sure every state might have different tax rules and laws. i would call a tax accountant and find out for sure.

        Avatar
        MA
        United States
        Member #11452
        February 14, 2005
        74 Posts
        Offline
        Posted: April 6, 2005, 3:19 am - IP Logged

        four4me: this is true for federal taxes, but not MA state taxes. MA's got a better payout than most other states, though, so I suppose it evens out in the end.