Quote:
Originally Posted by Rochard
LOL.
The IRS is trying to shut down loopholes. It's easy for the casino to say "Well, we gave away $10k to one lucky winner last night" and there is no way for the IRS to know if it's legit or not. At the same time, if someone wins $10k... The IRS has no way of knowing.
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funny, because the whole notion of the taxes you pay as an individual are "earned income tax" which winnings are not.
IMO, it's rather BS that you have to pay that % if you can provide evidence that you have lost money chasing that $1,000 win, otherwise you should be allowed to EXPENSE your gambling losses.
so, if you put in $500 into a slot machine, drain it all, then dump in your last $20 and win $600, in PA you have to pay taxes on the $600 BEFORE they will give you the winnings. I think it should be you prove, through your players card or receipts (which they don't obviously provide), that you invested $520 to make that $600, so your tax rate should be 30%+ on the $80 profit, not $600 net.
to me, makes no sense