Yesterday I wrote to my district legislator, Paula Zelenko regarding
our archaic tax laws concerning gambling winnings. Our state does
not let us deduct losses against wins. I have to report winnings of
$50,000 (including W2-Gs) but I had $52,000 in losses (not a good
year). For the first time I actuallly kept a diary. Federal is
great letting me deduct up to my wins.This being tax time I thought
it might be a good time to post this. I've decided to make it my
mission to try and get the law changed. I wasn't sure where to start
so I started with an inquiry to Ms. Zelenko. Does anyone out there
know the process? Maybe a petition from Michiganders. I'm sure I'm
not the only one in this situation. Perhaps the existing tax laws
were in effect before we had casinos here. There are hardly any full
pay, let alone positive play video poker games, so most people who
gamble here lose. If anyone can help with information or is
interested in my "cause" please reply. Thanks so much.
Michigan Tax
'frugaldancer' -
I applaud your effort because action speaks far louder than sitting on
our ass. Living in a state which doesn't permit a gambling loss
deduction is a misery when you're holding onto a slew of W2-G's ...
and, at best, an open temptation for all to cheat by not disclosing
wins which weren't W2-G reported.
However, prospects for tax reform on this issue are nominal, both at
the state level and national. Gamblers draw less empathy from the
public than do debt collectors, substance abusers and, quite possibly,
child molestors. We're victims of our own folly in the eyes of most
and there isn't broad based support necessary to achieve legislative
action.
One potent ally that SHOULD be in our pockets are the casinos
themselves. However, they choose to keep their hands off, preferring
to save their lobbyist chits for issues that directly affect
themselves. They rationalize that no matter the tax treatment, the
appetite for gambling will largely be unaffected. You'll be more
sensitive to your tax exposure when you next step foot into a casino.
But most players are relatively mindless when it comes to all aspects
of play.
Pursuading any legistlator to put this issue near the top of their
daily agenda is going to be tough going. Your best bet at the state
level is perhaps a senator. It's harder to get a state senators
attention, but I suspect there are damn few voters in the Davison
community who feel that this is an issue your local Rep. should be
focusing on.
Best wishes for your efforts, all the same!
- Harry
frugaldancer wrote:
···
Yesterday I wrote to my district legislator, Paula Zelenko regarding
our archaic tax laws concerning gambling winnings. Our state does
not let us deduct losses against wins. I have to report winnings of
$50,000 (including W2-Gs) but I had $52,000 in losses (not a good
year). For the first time I actuallly kept a diary. Federal is
great letting me deduct up to my wins.This being tax time I thought
it might be a good time to post this. I've decided to make it my
mission to try and get the law changed. I wasn't sure where to start
so I started with an inquiry to Ms. Zelenko. Does anyone out there
know the process? Maybe a petition from Michiganders. I'm sure I'm
not the only one in this situation. Perhaps the existing tax laws
were in effect before we had casinos here. There are hardly any full
pay, let alone positive play video poker games, so most people who
gamble here lose. If anyone can help with information or is
interested in my "cause" please reply. Thanks so much.
Outside of Nevada, the ONLY reason the states allow any form of legalized
gambling is to raise huge amounts of revenue for the state. Legislators
think of legalized gambling as a "sin tax" and a necessary evil to raise
additional revenue. The entire population of Nevada depends on the gaming
remaining attractive to visitors. This is not true in any other
jurisdiction. The other states tax the casinos in the neighborhood of 20%+.
They also gouge the taxpayers that are lucky enough to occasionally win a
significant amount.. The gaming tax in Nevada is 6.25%. This is one of the
major reasons (along with 100%+ return vp) that Nevada is the only state a
player has a legitimate chance to actually make money than they lose. Of
course this could change in the future. During the last several weeks, one
of Nevada's most outspoken critics of the gaming industry's influence in
Nevada politics, Joe Neal, has been trying to get a bill passed that would
increase the Nevada gaming tax from 6.25 to 8.25 percent on those casinos
that earn revenues of more than $1 million a month. However, the bill
received little support in the legislature and basically died when no one
but Neal would support it. Neal has blamed the bill's demise on the casinos
saying that the casinos own Nevada's legislature. Casinos give millions of
dollars to so many legislators that lawmakers don't dare vote on anything
that would upset the casinos or risk losing their House or Senate seat in
the next election. This is not the case in any other state in the country.
···
----- Original Message -----
From: "frugaldancer" <revons1@sbcglobal.net>
To: <vpFREE@yahoogroups.com>
Sent: Sunday, March 14, 2004 8:42 AM
Subject: [vpFREE] Michigan Tax
Yesterday I wrote to my district legislator, Paula Zelenko regarding
our archaic tax laws concerning gambling winnings. Our state does
not let us deduct losses against wins. I have to report winnings of
$50,000 (including W2-Gs) but I had $52,000 in losses (not a good
year). For the first time I actuallly kept a diary. Federal is
great letting me deduct up to my wins.This being tax time I thought
it might be a good time to post this. I've decided to make it my
mission to try and get the law changed. I wasn't sure where to start
so I started with an inquiry to Ms. Zelenko. Does anyone out there
know the process? Maybe a petition from Michiganders. I'm sure I'm
not the only one in this situation. Perhaps the existing tax laws
were in effect before we had casinos here. There are hardly any full
pay, let alone positive play video poker games, so most people who
gamble here lose. If anyone can help with information or is
interested in my "cause" please reply. Thanks so much.vpFREE Links:
http://www.west-point.org/users/usma1955/20228/VP/Links.htm
Yahoo! Groups Links
Don't feel like you're the Lone Ranger in your state. Here in
Louisiana we are in the process of phasing out all of what is
termed "excess itemized deductions" from the state tax
form. "Excess" is anything beyond the standard federal deduction.
(Interesting choice of words - as though you are doing something
wrong by declaring itemized deductions.) This year I think they may
still allow a percentage of this amount to be used, but the plan is
that in another year or two we will not be able to claim ANY itemized
deductions beyond the standard deduction for state taxes. So if you
live in Louisiana and have a large mortgage interest payment, or
large property tax payments, or give a lot of money to charity, or
have LARGE GAMBLING LOSS deductions - then it's just too bad for
you! If you collect enough W2-Gs, it's possible that you might be
put in the absurd situation of having to pay more in state taxes than
your TOTAL income for the year. At this point your only realistic
choice would be to file as a professional gambler and hope it flies
with the IRS.
I wish you good luck in trying to get things changed in your state,
but don't get your hopes up. It's simply not going to be a high
priority with the politicians OR the general public. I've tried to
discuss the absurdities of the gambling related tax laws with people
I know, and most people look at me as if I've suddenly started to
speak Chinese. Most people couldn't care less, unless they too have
personally had to deal with the tax treatment of lots of W2-Gs and
the offsetting losses.
EE
···
--- In vpFREE@yahoogroups.com, "frugaldancer" <revons1@s...> wrote:
Yesterday I wrote to my district legislator, Paula Zelenko regarding
our archaic tax laws concerning gambling winnings. Our state does
not let us deduct losses against wins.<<<<<<<<<<
> Yesterday I wrote to my district legislator, Paula Zelenko
regarding
> our archaic tax laws concerning gambling winnings. Our state
does
> not let us deduct losses against wins.<<<<<<<<<<
I live in Ohio and was lucky to hit a royal ($1 Pick-em) at MGM
Grand Detroit. It's bad enough one might have to share their win
with Uncle Sam, but I was shocked when I was told that the 4%
Michigan state income tax ($240.00) would be taken off the top.
I've been robbed, and there's no one to complain to. I look forward
to the day when I no longer have to gamble in Michigan.
···
--- In vpFREE@yahoogroups.com, "eecounter" <eecounter@h...> wrote:
--- In vpFREE@yahoogroups.com, "frugaldancer" <revons1@s...> wrote:
I live in Ohio and was lucky to hit a royal ($1 Pick-em) at MGM
Grand Detroit. It's bad enough one might have to share their win
with Uncle Sam, but I was shocked when I was told that the 4%
Michigan state income tax ($240.00) would be taken off the top.
I've been robbed, and there's no one to complain to. I look
forward
to the day when I no longer have to gamble in Michigan.
If you are traveling that far. go a few more miles to Casino Windsor
where they have some full pay VP machines in the $2 - $5 room...
and no tax taken out
Bulldog
I live in Ohio and was lucky to hit a royal ($1 Pick-em) at MGM
Grand Detroit. It's bad enough one might have to share their win
with Uncle Sam, but I was shocked when I was told that the 4%
Michigan state income tax ($240.00) would be taken off the top.
I've been robbed, and there's no one to complain to. I look
forward
to the day when I no longer have to gamble in Michigan.
It's refundable, just file a non resident return at the end of the
year. 4% withholding is for non-residents only. Ask your accountant
or tax preparer if you have questions.
paladin415x wrote:
> I live in Ohio and was lucky to hit a royal ($1 Pick-em) at MGM
> Grand Detroit. It's bad enough one might have to share their win
> with Uncle Sam, but I was shocked when I was told that the 4%
> Michigan state income tax ($240.00) would be taken off the top. > I've been robbed, and there's no one to complain to. I look
forward
> to the day when I no longer have to gamble in Michigan.It's refundable, just file a non resident return at the end of the
year. 4% withholding is for non-residents only. Ask your accountant
or tax preparer if you have questions.
In Mississippi, the taxes that are withheld are NOT refundable under any circumstances -- at least for non-residents.
Bill Velek
under any circumstances -- at least for non-residents.>>>>>>>>>>
This is also true for Mississippi residents. The 3% state tax on a
$1200+ slot jackpot is just gone for good if you are a MS resident.
This is a situation where it may help to be from out of state. At
least if you are from another state, you may be able to offset your
local state tax liability by the amount withheld by Mississippi.
EE
···
--- In vpFREE@yahoogroups.com, Bill Velek <billvelek@a...> wrote:
In Mississippi, the taxes that are withheld are NOT refundable
eecounter wrote:
> In Mississippi, the taxes that are withheld are NOT refundable
under any circumstances -- at least for non-residents.>>>>>>>>>>This is also true for Mississippi residents. The 3% state tax on a
$1200+ slot jackpot is just gone for good if you are a MS resident. This is a situation where it may help to be from out of state. At
least if you are from another state, you may be able to offset your
local state tax liability by the amount withheld by Mississippi.
That might be true, but the main point was that such winnings are usually negated by gambling losses during the year. So, if that $1200+ JackPot causes me to realize only a $50.00 win or loss for the year, then my tax liability in Arkansas re gambling profits is already going to be low or non-existent, and I'm not sure that they'll let me deduct a tax-liability to Mississippi resulting from gambling from my taxable income from other sources in Arkansas. I sort of doubt it ... a lot ... but I'll cross that bridge when I come to it.
Cheers.
Bill Velek
···
--- In vpFREE@yahoogroups.com, Bill Velek <billvelek@a...> wrote: