I believe that's correct, and it sounds like (from Jean's recent posts) that
Ohio is the same way. So is Michigan. I talked to a guy a couple of years
ago who had a net loss of $20,000 but still had to pay the State a couple of
thousand in income tax on his "winnings". Plus, in Michigan, there is a
Homestead Property Tax Credit, a rebate of sorts that is indexed to income. Snag
a few W2G's and your "rebate" goes right in the tank, almost a form of
double taxation on income that may not exist at all.
- Brian in MI
In a message dated 9/6/2007 3:21:39 P.M. Eastern Daylight Time,
jbecker11@charter.net writes:
It could be worse, from what I understand Illinois does not allow any
offset for your losses and they want 3 or 6% of every w2g regardless
of whether you win or lose at the end of the year.
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