This primarily concerns residents of the state of Kansas. I am opening this thread to both inform and initiate a discussion about the new (2014) Kansas state bill about how the state of Kansas intends to tax gambling “winnings”. I first learned of this from a friend yesterday, and frankly, I couldn’t believe it was true. I did some research and found that it was completely legitimate. Essentially, you must pay the state tax on all of your winnings; particularly all of the Form W - 2G statements. The kicker is that you will NOT, repeat, NOT be allowed to deduct any losses. This means (hypothetically) if I accumulate W-2Gs totaling $10,000, but for the year I lose $15,000 for a net LOSS of $5,000, I STILL have to pay the taxes (approximately 4%) on the $10,000 W-2G total. So instead of losing $5,000 for the year, I lose an additional (again, approximately) $400 due to the additional taxes.
This includes ALL “winnings” in ANY state (read Nevada).
Any one care to comment of this development?