It's been a while since I've listed out the bad states for gamblers. Here's an updated list. Make sure you read the notes because while all of these states have tax systems that are problematic for gamblers, some impact amateurs while others impact professionals. Note that I do not cover the laws that impact gambling here (such as Washington State's law that makes online gambling a Class C felony).
Connecticut [1]
Hawaii [2]
Illinois [1]
Indiana [1]
Massachusetts [1]
Michigan [1]
Minnesota [3]
Mississippi [4]
New York [5]
Ohio [6]
Washington [7]
West Virginia [1]
Wisconsin [1]
Free sign up bonus no deposit mobile casino nz 2018 date. NOTES:
New York State Tax Gambling Winnings
Prize payment is New York source income and is subject to New York State income tax. If the proceeds are $5,000 or less, or the prize was won before October 1, 2000, the prize payment(s) is not considered New York source income and is not subject to New York income. It depends on where the casino is. Most of the casinos in the U.S. Margaritaville casino biloxi ms. Deduct a state tax on slot payouts above a certain amount, then also, you are supposed to claim winnings as income when you file. New York is on track to collect more casino tax revenue than Nevada this year. If that happens, Nevada will become the No. 3 state in the union for collecting tax revenue from the casinos within it. Missing from the left-leaning tax-the-rich rhetoric Thursday was any talk of legalizing gambling and pot, which a large faction of lawmakers seem to support, and have over the last several years. Petitioner asks whether the New York Tax Law allows for a subtraction modification in computing New York adjusted gross income for the lesser of annual gambling losses or the gambling winnings incurred from slot machines1 shown on Federal Form W-2G. We conclude that there is no basis in the Tax Law to allow for a subtraction.
Does New York State Tax Gambling Winnings
1. CT, IL, IN, MA, MI, WV, and WI do not allow gambling losses as an itemized deduction. These states' income taxes are written so that taxpayers pay based (generally) on their federal Adjusted Gross Income (AGI). AGI includes gambling winnings but does not include gambling losses. Thus, a taxpayer who has (say) $100,000 of gambling winnings and $100,000 of gambling losses will owe state income tax on the phantom gambling winnings. (Michigan does exempt the first $300 of gambling winnings from state income tax.)
2. Hawaii has an excise tax (the General Excise and Use Tax) that's thought of as a sales tax. It is, but it is also a tax on various professions. A professional gambler is subject to this 4% tax (an amateur gambler is not).
3. Minnesota's state Alternative Minimum Tax (AMT) negatively impacts amateur gamblers. Because of the design of the Minnesota AMT, amateur gamblers with significant losses effectively cannot deduct those losses.
4. Mississippi only allows Mississippi gambling losses as an itemized deduction.
5. New York has a limitation on itemized deductions. If your AGI is over $500,000, you lose 50% of your itemized deductions (including gambling losses). You begin to lose itemized deductions at an AGI of $100,000.
Roulette is a drain on your wallet simply because the game doesn't pay what the bets are worth. With 38 numbers (1 to 36, plus 0 and 00), the true odds of hitting a single number on a straight-up bet are 37 to 1, but the house pays only 35 to 1 if you win! Ditto the payouts on the combination bets.
6. Ohio currently does not allow gambling losses as an itemized deduction. However, effective January 1, 2013, gambling losses will be allowed as a deduction on state income tax returns. Unfortunately, those gambling losses will not be deductible on city or school district income tax returns, so Ohio will remain a bad state for amateur gamblers.
Connecticut [1]
Hawaii [2]
Illinois [1]
Indiana [1]
Massachusetts [1]
Michigan [1]
Minnesota [3]
Mississippi [4]
New York [5]
Ohio [6]
Washington [7]
West Virginia [1]
Wisconsin [1]
Free sign up bonus no deposit mobile casino nz 2018 date. NOTES:
New York State Tax Gambling Winnings
Prize payment is New York source income and is subject to New York State income tax. If the proceeds are $5,000 or less, or the prize was won before October 1, 2000, the prize payment(s) is not considered New York source income and is not subject to New York income. It depends on where the casino is. Most of the casinos in the U.S. Margaritaville casino biloxi ms. Deduct a state tax on slot payouts above a certain amount, then also, you are supposed to claim winnings as income when you file. New York is on track to collect more casino tax revenue than Nevada this year. If that happens, Nevada will become the No. 3 state in the union for collecting tax revenue from the casinos within it. Missing from the left-leaning tax-the-rich rhetoric Thursday was any talk of legalizing gambling and pot, which a large faction of lawmakers seem to support, and have over the last several years. Petitioner asks whether the New York Tax Law allows for a subtraction modification in computing New York adjusted gross income for the lesser of annual gambling losses or the gambling winnings incurred from slot machines1 shown on Federal Form W-2G. We conclude that there is no basis in the Tax Law to allow for a subtraction.
Does New York State Tax Gambling Winnings
1. CT, IL, IN, MA, MI, WV, and WI do not allow gambling losses as an itemized deduction. These states' income taxes are written so that taxpayers pay based (generally) on their federal Adjusted Gross Income (AGI). AGI includes gambling winnings but does not include gambling losses. Thus, a taxpayer who has (say) $100,000 of gambling winnings and $100,000 of gambling losses will owe state income tax on the phantom gambling winnings. (Michigan does exempt the first $300 of gambling winnings from state income tax.)
2. Hawaii has an excise tax (the General Excise and Use Tax) that's thought of as a sales tax. It is, but it is also a tax on various professions. A professional gambler is subject to this 4% tax (an amateur gambler is not).
3. Minnesota's state Alternative Minimum Tax (AMT) negatively impacts amateur gamblers. Because of the design of the Minnesota AMT, amateur gamblers with significant losses effectively cannot deduct those losses.
4. Mississippi only allows Mississippi gambling losses as an itemized deduction.
5. New York has a limitation on itemized deductions. If your AGI is over $500,000, you lose 50% of your itemized deductions (including gambling losses). You begin to lose itemized deductions at an AGI of $100,000.
Roulette is a drain on your wallet simply because the game doesn't pay what the bets are worth. With 38 numbers (1 to 36, plus 0 and 00), the true odds of hitting a single number on a straight-up bet are 37 to 1, but the house pays only 35 to 1 if you win! Ditto the payouts on the combination bets.
6. Ohio currently does not allow gambling losses as an itemized deduction. However, effective January 1, 2013, gambling losses will be allowed as a deduction on state income tax returns. Unfortunately, those gambling losses will not be deductible on city or school district income tax returns, so Ohio will remain a bad state for amateur gamblers.
7. Washington state has no state income tax. However, the state does have a Business & Occupations Tax (B&O Tax). The B&O Tax has not been applied toward professional gamblers, but my reading of the law says that it could be at any time.
