PDA

View Full Version : Massachusetts State Gambling Tax?

Slider
04-06-2007, 08:57 PM
I'm confused to how this exactly works.. I'm going to consult a CPA obviously, but..

Say total winnings were 75k and total losses were 50k..

According to Mass law, I get state income taxed on the 75k? and not 25k?

If I file professionally, do I get to deduct something and how does that exactly affect how I pay?

Thanks in advance,

Slider
DoGGz
04-07-2007, 12:36 AM
If it's the same as IL law, which I believe it is, then you will get taxed on 75k if you don't file as a professional.

I'd advise filing as a professional and not getting ass raped by retarded tax law.
ImsaKidd
04-09-2007, 03:54 PM
So if slider gets taxed on the 75k "profit", even though net profit is only 25k, doesnt that make it just breakeven? So dumb...
FatalError
04-09-2007, 06:07 PM
pro and hobbyists get taxed differently

i filed in ma and have no other source of income, therefore i don't get bent over like others, very archaic though
Chamonyx
04-09-2007, 06:43 PM
Yep, you pay MA tax on the 75. If you file as a professional (and qualify) you will pay income tax on the 25, but you will also need to pay 15% federal self-employement tax on the 25 as well as any state self-employment tarif (not sure if there is one for MA)
schwza
04-09-2007, 07:22 PM
[ QUOTE ]
So if slider gets taxed on the 75k "profit", even though net profit is only 25k, doesnt that make it just breakeven? So dumb...

[/ QUOTE ]

no, because the mass income tax is lower than 33% (5.9%, i think), but yeah, your idea is right.
ImsaKidd
04-09-2007, 11:08 PM
[ QUOTE ]
[ QUOTE ]
So if slider gets taxed on the 75k "profit", even though net profit is only 25k, doesnt that make it just breakeven? So dumb...

[/ QUOTE ]

no, because the mass income tax is lower than 33% (5.9%, i think), but yeah, your idea is right.

[/ QUOTE ]

Sorry, I'm a tax noob. I'm assuming the % is similar for most states?

Maybe I was thinking more along the lines of big lottery winners paying 1/3rd of their winnings to the feds? Is a windfall like that different from income?
Befolder
04-10-2007, 12:44 PM
Doesn't he still get to claim a deduction of 50K for his state taxes for losses?
Moneyline
04-10-2007, 01:11 PM
[ QUOTE ]
Doesn't he still get to claim a deduction of 50K for his state taxes for losses?

[/ QUOTE ]

No.
Befolder
04-10-2007, 01:50 PM
[ QUOTE ]
[ QUOTE ]
Doesn't he still get to claim a deduction of 50K for his state taxes for losses?

[/ QUOTE ]

No.

[/ QUOTE ]

That really sucks. I just went down to the Department of Revenue for Oregon not minutes ago after my first post and we are able to claim that same deduction as federal via a Schedule A form.