In search of more taxes

[perda04]

Hawaii residents now taxed on Vegas winnings even if they lose

A new bill signed into law this month by Gov. Linda Lingle has some frequent Las Vegas visitors and local CPAs scratching their heads.
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Under House Bill 1495, no longer will gamblers be able to offset their winnings with their losses for Hawai'i state income tax purposes. Previously gamblers would be taxed only on their net winnings, but now they will be taxed on gross winnings.

A Hawai'i resident who wins $10,000 in a year, for example, and loses $9,000 in the same year used to be taxed only on the $1,000 in net winnings. Under the new law, that resident would be taxed on the full $10,000 in winnings.

 

[Brandonm22]

Hawaii residents now taxed on Vegas winnings even if they lose

A new bill signed into law this month by Gov. Linda Lingle has some frequent Las Vegas visitors and local CPAs scratching their heads.
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Under House Bill 1495, no longer will gamblers be able to offset their winnings with their losses for Hawai'i state income tax purposes. Previously gamblers would be taxed only on their net winnings, but now they will be taxed on gross winnings.

A Hawai'i resident who wins $10,000 in a year, for example, and loses $9,000 in the same year used to be taxed only on the $1,000 in net winnings. Under the new law, that resident would be taxed on the full $10,000 in winnings.

All this bill means is that the state can seize more assetts from gamblers. Very Very few gamblers actually "Net" anything. A weekly gambler with gross winnings of $10,000 probably spent $20,000. If the state of Hawaii hits him with a state income tax bill of $1000 (at 10%- I don't know what the Hawaii rate really is) then he is out $11,000.

 

[john250]

Just another reason to place your action with someone more reputable than the government. Or is Don Corleone filing 1099's now?

 

[Alberta farmer]

In Canada whatever you win gambling is yours. No tax. If you hit the lottery its all yours.

 

[ga. prime]

Are there really people out there that report profit/loss from gambling?

 

[Brandonm22]

Most of those casinos are supposed to file a W-2G on you when they pay out.

http://www.irs.gov/taxtopics/tc419.html

http://www.irs.gov/pub/irs-pdf/fw2g.pdf

 

[hillsdown]

If we gamble in the states and win taxes are deducted right there at pay out. When we get back we have to fill out 50 million forms to get most of it back . Just like when you buy stuff in Canada you have to pay the GST but when you get home you just fill out your forms and are refunded it.

As far as taxing what you lost wtf ?????? How much more taxes can people pay , why the h#ll do the working have to be taxed 50 million times because they actually get off their #sses and have a job. :? Same BS is going on here..