Possible effect of new tax law on gambling

[OTABILL]

Olds, for you and I the standard deduction in 2018 will be $26,600 (for married couples filing jointly where both are 65 or over).

"The legislation also leaves intact the additional standard deduction for filers who are 65 and over or blind, allowing them to claim an additional $1,300 when they file their 2018 taxes.

This means that two married taxpayers who are both over 65 can lower their taxable income by an extra $2,600."

The GOP tax overhaul kept this $1,300 tax break for seniors

[olds442jetaway]

Yes Otabill and this is where I get stung the most. My itemized deductions will only be around 12,000 for the 2018 tax year due to the cap on state and local taxes. This of course does not count gambling losses which for arguments sake will be 150,000 to offset the 150,000 in gross gambling winnings. Where I get screwed is only being able to use the 12,000 number instead of the over 26,000 standard deduction. That 14,000 or so difference translates into about 3,500 in additional tax. Just brutal. I have almost no choice but for 2018 to curtail my gambling to make sure I don't fall into this trap and make sure my bets are small enough as not to generate any W-2Gs. Besides myself, my state will lose out big time since normally on 150k in gross gambling winnings, they would get about 8,000 bucks. The bottom line is I will at least save the 8k or so the state would normally get since Ct does not allow one to write off gross gambling winnings. Maybe in the long run it will be good because it will force me to not play big just to give the government extra money.

[pokerpokerpoker]

If your "big 3" deductions (mortgage interest, charity, and state and local taxes - up to $10k) total $24K; you are set. You can claim losses up to your winnings, like most people do now.

If they don't total $24k (for married filers), you will essentially be paying income tax on the difference between your deductions and $24k.

So, if your "big 3" total $10k and you had $20k in signers (which you lost back) you can itemize, but will only get to see the benefit of the $6k. $10k + $20k -$24k = $6k

Say your deductions are $10k and you only had $4k in signers - you are outta luck and are gonna pay on that $4k.

Personally, this change is gonna cause me to cut way back in playing dollars. My deductions are nowhere near $24k and I sure don't want to pay tax on signers that I more than likely lost back at the casino.

[alpax]

I appreciate the example you've provided PPP, probably the best explanation I've seen on online gambling boards.

For me, the jump is from $6350 to $12000. With the state taxes being so high out West it won't take me much W2Gs to cover the full standard deduction.

I do not think it will affect me drastically. I will see partially gained 3% with the new tax brackets to slightly offset the loss.

I always saw casino gambling as an expensive hobby where lots of money is involved in swings. If one cannot handle these swings they should pursue another hobby.

[pokerpokerpoker]

Alpax, I agree with your last paragraph completely.

As a last hurrah under the old system, I hit the casino Friday for a go at the $1 5star QQ. After about 5 minutes, caught 3 to the royal and converted. Took the cash and went home.

Up early on Saturday to make April's mortgage payment in cash - to make use of the old tax system.