Anyone wonders why we pay taxes on wins of $1200?

[mtaracpa]

The IRS has announced they are considering lower the $1,200 to $600.

mtarcpa

[UptightTO]

Since the subject has been brought up...the real solution is to enact The Fair Tax...in this case no jackpot would require the cadre of people necessary to keep up with the accounting...How much does it cost to issue a 1099? I'm certain it's way more than whatever the potential tax liability may be not to mention most never pay taxes on winnings because they ultimately play it back...It's a loose loose to all concerned except for the government bureaucrat charged with doing the mind numbing paperwork...But back to the point...$1200.00 is ridiculous..

[MPD001]

[QUOTE=gregorio] That�really was not my question. I was wondering why $1200 limit enacted years ago and probably equivalent to somewhere between $5000-7000 in todays money has not been inflation adjusted after decades of beiing the same? Everything else went up, why not this?

With the US Government operating at staggering deficits, don't look for them to be 'reasonable' about this, and raise the threshold for reporting. I would be MORE concerned about them going the other way, and looking for reporting on even smaller winnings. [/QUOTE]
WOW - this guy BillyJoe must be some sort of a soothsayer. Good call, BillyJoe, when you posted this back in October last year, with the government now looking at a $600 threshold for reporting.

[Galeygoo]

[QUOTE=billyjoe] [QUOTE=gregorio] That�really was not my question. I was wondering why $1200 limit enacted years ago and probably equivalent to somewhere between $5000-7000 in todays money has not been inflation adjusted after decades of beiing the same? Everything else went up, why not this?

With the US Government operating at staggering deficits, don't look for them to be 'reasonable' about this, and raise the threshold for reporting. I would be MORE concerned about them going the other way, and looking for reporting on even smaller winnings. [/QUOTE]
WOW - this guy BillyJoe must be some sort of a soothsayer. Good call, BillyJoe, when you posted this back in October last year, with the government now looking at a $600 threshold for reporting. [/QUOTE]You're right on target, MPD.  Billy Joe is ONE SMART DUDE and I guess you are not familiar with his past work on the forum.  He doesn't frequent this site anymore, BUT I believe he SURE IS MISSED....at least by me....oh, did I mention charismatic?

[spxChrome]

unless you gamble professionally you can generally write it all off vs losses. I have written it all off almost every year with no IRS problems.

The Federal you can do this with but not with State. Unless you are playing out of State of course.

[PackerFans]

Wisconsin drives me crazy when I do my taxes. Not only do I have to pay taxes on all hand pays in Wisconsin but also any other states hand pays, even if that state took out state taxes at the time of the win. Our state does not allow you to deduct losses. They count every hand pay as true income. Than to top it off, if I had a number of wins, they penalize me for under withholding my state income tax and assess me an additional penalty.

[FloridaPhil]

[quote=PackerFans]Not only do I have to pay taxes on all hand pays in Wisconsin but also
any other states hand pays, even if that state took out state taxes at
the time of the win. Our state does not allow you to deduct losses. They
count every hand pay as true income. Than to top it off, if I had a
number of wins, they penalize me for under withholding my state income
tax and assess me an additional penalty.[/quote] Wow, that is ridiculous. I would avoid hand pays at all cost.  By the time the casino and the State got their cut, there wouldn't be enough left to get a cab ride home.

[b74]

Taxes are paid betting on the ponies $599 and up

[mammajamma]

I had read once that the threshold for video keno was $1500

[olds442jetaway]

In Ct., all gross winnings are taxable even if you itemize your deductions on your Federal return and end up with zero gambling winnings after deducting losses. Now you know where the term " gross " comes from and for most people that amounts to 5% plus of your gross winnings.