I played in Kansas for the 1st time this year on a short-lived big play. The state withholds a mandatory 4.5% from all W2G wins. Before proceeding to play I researched their tax laws, and as of tax year 2012, Kansas allowed losses to be deducted against W2G wins. In my experience, this is usually a good sign that there will be no/fewer issues with filing Schedule C and getting the appropriate amount of the withholding back. I proceeded to play...and in one 6-hour session I racked up almost $58k in W2Gs. The play was dead after that.
However...I just started filling out the forms for my non-resident KS return tonight to find that Schedule C income is not taxable in KS. At first I was pleased, but then that raised a red flag. I proceeded to look for info about the rules for gambling winnings on the KS Dept of Revenue website. Low and behold, in during 2013, they made a new ruling stating that gambling losses could no longer be claimed against wins. While this is not directly related to filing Schedule C, it does imply that getting any withholding back could prove very difficult.
So, I'm curious if anyone else has successfully filed on Schedule C and gotten any of their Kansas withholding back, or has had a similar situation in a different state. If you'd prefer, send a private message to v_p_player@yahoo.com
Reply via web post | Reply to sender | Reply to group | Start a New Topic | Messages in this topic (1) |