<<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!!!!
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Jean $¢ott, Frugal Gambler
http://queenofcomps.com/
You can read my blog at
http://jscott.lvablog.com/
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