Jean is right on. I believe that many taxpayers who have over $ 10,000 per
year in gambling winnings with corresponding losses on schedule A don't
realize that they are paying more in income taxes as a result of this stupid
reporting method. It has impacted exemption allowances, itemized deductions,
making workers pay etc. over the past several years. In addition, it impacts
social Medicare costs for retirees. The greater the amount of W2-G winnings
the more impact on ones tax liability.
The sad part is that we are paying more income tax then non-gamblers who
have the same disposable income. What do you think would happen if stock
traders had to report cost on schedule A rather than just reporting the net
gain on stock sales? Talk about discrimination!
_____
From: vpFREE@yahoogroups.com [mailto:vpFREE@yahoogroups.com] On Behalf Of
Jean Scott
Sent: Monday, October 17, 2011 10:54 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Re: Info when you cash a ticket
<<As an educational exercise (assuming you're not already dealing with large
W2-G amounts), take your most recent 1040 form, add say $200,000 to the line
for gambling winnings on the front page of the form, and deduct the same
$200,000 as an itemized deduction. Recalculate you tax liability. Pay
careful attention to the various line items that are affected, limited, or
deleted entirely by your suddenly much higher "income". You'll see why
netting out is not allowed.>>
This was a good example. Another one, for someone who perhaps has fewer
W-2G's AND does not ordinarily itemize, may be even more illuminating.
Perhaps a dollar player may get 3 or 4 royals a year - or use any number you
want as your gambling income - and then see how that hurts!!!!
________________
Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
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