Proposed IRS Tax Reporting from Gambling Winnings

[MPD001]

Casino execs oppose possible IRS change for gaming winnings
The Internal Revenue Service has proposed lowering the threshold for winnings on keno, slots and bingo, requiring IRS paperwork at $600 instead of $1,200; the current thresholds were established in 1977. Casino executives and industry experts oppose the change, calling it unnecessary and citing burdens of additional paperwork and longer downtime for machines after the limit is reached. "If anything, the reporting threshold should be increased to account for inflation," said Eric Schippers, senior vice president of public affairs for Penn National Gaming. Las Vegas Review-Journal (3/5)

[WhitneyReed]

I hadn't heard about the proposed change; that would be nuts! It would seriously slow down play in so many circumstances. I play $1 Double Bonus a lot, so every four Aces would require waiting 15-20 minutes for paperwork. And the taxes usually wind up as a wash anyway after deducting losses from winnings on your return.

[faygo]

And the taxes usually wind up as a wash anyway after deducting losses from winnings on your return.

The issue is State Income Tax in those states that calculate their tax from the Adjusted Gross Income on the Federal return. In effect , if you had a losing year you get to pay tax on money you don't have.

[alpax]

In Michigan and Mississippi, the state tax cannot be offset by losses. I do not know of the other states, but for sure Nevada allows for writing off taxable winnings with a reported loss.

It seems like most people are going to let the casino executives battle this out and they will invest more energy/funds towards going against the proposal.

[MPD001]

In Michigan and Mississippi, the state tax cannot be offset by losses. I do not know of the other states, but for sure Nevada allows for writing off taxable winnings with a reported loss.

Nevada has no state income tax. New Jersey taxes only 'net winnings' for non-residents.

[ko king]

In Michigan and Mississippi, the state tax cannot be offset by losses. I do not know of the other states, but for sure Nevada allows for writing off taxable winnings with a reported loss.

It seems like most people are going to let the casino executives battle this out and they will invest more energy/funds towards going against the proposal.


In Arkansas the Tax is 5%, if you hit for $10K the state takes $500 and you can't claim the losses.

[olds442jetaway]

Ct taxes you 5% or more on the gross winnings you report on your federal return. Example...50k.Gross winnings from line 21 on the Federal 1040. State keeps 2500- or more.

[alpax]

California allows you to report losses as a deductible up to winnings reported, working just like a federal return.

[notes1]

 stated many times that the reason governments have allowed casinos was not to offer the citizens something they want, but as a revenue source.  as confirmation of this, did all notice that in the Ferguson, Mo, case, one of the critiques was that there was a high rate of tickets/minor infractions that police were handing out. i know the apparent problem was that the tickets were directed toward one group, but, my point is that these minor infractions are becoming an increasingly important revenue source. in my own, very liberal community, a minor ticket will result in a total cost of $400, not including legal.  instead of raising taxes, raising revenue in other stealth ways has become the norm.    

[ko king]

 stated many times that the reason governments have allowed casinos was not to offer the citizens something they want, but as a revenue source.  as confirmation of this, did all notice that in the Ferguson, Mo, case, one of the critiques was that there was a high rate of tickets/minor infractions that police were handing out. i know the apparent problem was that the tickets were directed toward one group, but, my point is that these minor infractions are becoming an increasingly important revenue source. in my own, very liberal community, a minor ticket will result in a total cost of $400, not including legal.  instead of raising taxes, raising revenue in other stealth ways has become the norm.    

Isn't Mo. the state that allows someone ticketed with a moving violation to pay double the fine to keep the infraction off of their driving record?