That is true for IRS returns. But, in Michigan, you owe the income tax -
period.
- Brian in MI
In a message dated 11/21/2005 7:33:45 PM Eastern Standard Time,
letterman@poboxes.com writes:
--- In vpFREE@yahoogroups.com, Jean-Baptiste Queru <jbqueru@g...>
wrote:
>Is that a way of saying that if I put $10 in a JoB machine (dollar,
>5-coin), hit 2P (win $5) and then hit nothing (lose $5), finally
>walking away with $10, I would owe taxes on my $5 winnings?Actually, you would owe taxes on your $10 winnings, but could write
off $10 in losses for a net tax amount owed of $0.00.Assuming your two pair paid 2-for-1 (or $10 for your $5 bet), it's
considered a $10 win, despite the fact that you spent $5 to win it.
If you hit a Royal on that game, for example, you would get a W2-G
for $4000 -- not $3995.Since you can deduct your gambling losses when you file your taxes
(up to the amount you have claimed to win), you had a $10 win, and
$10 in losses for a net of $0.00.This past year, I was fortunate enough to hit a Royal Flush for
$2000. I received a W2-G for that. I may deduct up to $2000 in
documented losses against that win. If I can document that much in
losses, I will not owe anything on the win.
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