In a message dated 9/9/2007 2:41:17 A.M. Eastern Daylight Time,
mickeycrimm@yahoo.com writes:
And there are no graduating tax brackets for gambling win. It's a
straight 28% on the net win. So if you net $100,000 you owe $28,000,
if you net $10,000 you owe $2800. This is what makes it so hard on
full time gamblers. In any other occupation a person who makes only
$10,000 isn't gonna pay any taxes.
You can write of your losses or you can take your standard
deduction/personal exemption but you can't do both.
That info is incorrect. Your winnings are added to your other income and
you pay at whatever tax rate you are subject to. If someone was married and
won $10,000 and had no other income, they would owe no tax. If you don't
qualify for professional gambling status, you need to itemize to claim any losses.
That will eliminate the standard deduction but you are still entitled to
personal exemption(s) subject to income limitation phaseouts. Depending on
your income, you might be subject to the alternative minimum tax. Gambling
winnings added to other income can have major unforseen consequences including
having some of your social security benefits being taxable, increasing the cost
of your Medicare premiums (now based on income), loss of certain itemized
deductions, etc. State tax issues are considerably more complicated. Table
players have always been subject to reporting wins and losses on a session
basis. That hasn't changed.
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