Watch Those W-2Gs

[olds442jetaway]

Although all gross gambling winnings are taxable, the new tax law has thrown some expensive loopholes in our path. The already expensive tax states like mine sweep up 6 percent or so off the top on gross gambling winnings with no ability to write off your losses. The Federal rules got even nastier. For example, they doubled the standard deduction, but eliminated personal exemptions. Most of us don’t have not counting gambling winnings, enough itemized deductions to offset the increased standard deduction. The consequences tax wise are devastating. For example, if your itemized deductions fall let’s say 9k short of the standard deduction and you itemize anyway, you lose depending on your income 22 percent or so of that 9k shortfall. Yet, to offset your gross wins, we are forced to itemize our deductions on our income tax returns. I knew this was coming, but still didn’t reduce my play as much as I needed to for 2018. This resulted in thousands of additional federal income tax liability. The state lost out though because I did manage to keep my gross winnings to about 1/3 0f 2017 so they got 2/3 less of that 6 percent. For 2019, I am doing my best to keep my gross winnings way down. I don’t mind paying my fair share, but when the rules are so unfair, I have no intention of giving them a free windfall. The biggest losers will be the states that tax gross gambling winnings with no ability to write off losses and of course the casinos who will see much less action. I am already seeing the results in my state as gambling profits are public record. The 2 Ct casinos continue to lose profit month after month and as I expect, the trend will continue as competition continues to increase and more players realize as they got overly stung on their taxes and therefore change their ways of playing. If the casinos try and offset this revenue decline by lowering patrons returns, they will and are just shooting themselves in the foot by driving gamblers to other forms of recreation or vast reductions in their coin in. Imo, gambling winnings should be taxed no differently than say gains on stocks and bonds. There at least, one is taxed on what you really did make and not taxed unfairly by politicians whims just to boost the coffers so they can waste more money.

[billryan]

I was.just reading on the new W4 forms every employer is required to have each employee fill out. The old forms just had the number of exemptions. The new form requires you to list all other forms of income- dividends, rental property, second jobs, child support, gambling. Information that your employer has no right or need to know.

[olds442jetaway]

Wow! Big brother needs to be taken down a peg. You are absolutely correct BR. At least they have no right to know until we have to file our tax returns. Even those are getting to be quite invasive with all of the technology.

[olds442jetaway]

I was just thinking. If one listed child support and gambling in the form, one might not even get the job.

[olds442jetaway]

By Big brother of course I was including the employer, but as to the tax return, just the govt and even then......

[Waiting4RF]

It is bad when you have a losing year and you have to pay taxes on the W2Gs you got because you can't itemize. And then since you can't itemize, your don't have any state deductions too so your state taxes go up. I can see the charities will be hurting too because they were a write off before.

[olds442jetaway]

Yep, but in my case I had to itemize to get rid of the gross gambling winnings with losses. The booby traps that that got me are 10k cap on deducting state and local taxes. Big time loss there to the tune of 9k or so in lost deductions. Affects mostly Ny, NJ, and Ct residents. Huge taxes on small properties if you live anywhere near the ocean.

[FloridaPhil]

One of the reason I like to play single coin dollar Deuces Wild over max coin quarters is the most common big jackpot (read lucky) for me is a dollar quad deuce for $1,000. I hit more of these in a year than I hit max coin royals and there is no W-2G. I realize most players don't get it, but it works for me.

If you collect a lot of W-2Gs, you are going to push yourself into a higher tax bracket. If you live in a State that taxes gambling, it's worse. In the past, my wife and I always itemized our returns. We wrote off our gambling losses against our W-2Gs, so they never affected us. Last year we didn't itemize. I only had one W-2G for $2,000, so the damage was minimal.

The funny thing that happened recently was some New York politician accused Florida of stealing their residents. Our Governor said Florida wasn't stealing their residents, New York was driving them off. I can't understand what the Northeast states do with all that tax money. They are always broke and the residents don't seem to mind. Where does the money go? If that happened here in Florida, there would be a lynching.

[onemoretry]

Every time I read about all the income tax woes most of you have to endure (your system does appear to me to be unfairly punitive), I am thankful I live in Canada, where gambling (and lottery) winnings are not deemed to be taxable income.

[FloridaPhil]

Every time I read about all the income tax woes most of you have to endure (your system does appear to me to be unfairly punitive), I am thankful I live in Canada, where gambling (and lottery) winnings are not deemed to be taxable income.

I play in Windsor once in a while. It's nice not to worry about W-2Gs. Good reason not to play in Detroit.