Massachusetts Gambling Income Question - Off Topic.

Substantiating Gambling Losses in Tax Court. April 14th, 2011 taxdood Leave a comment Go to comments. Many taxpayers who report gambling winnings and losses don’t maintain satisfactory records of their gambling activity. Page 12 of this IRS publication states: You must keep an accurate diary or similar record of your losses and winnings. Your diary should contain at least the following.

What gambling losses are deductible in massachusetts

The law is not as kind to nonresidents: While nonresidents must also include U.S.-source gambling winnings as income, they cannot deduct gambling losses against those winnings. Nonresidents whose gambling winnings are connected to a trade or business may deduct gambling losses to the extent of winnings, however, under Sec. 873.

What gambling losses are deductible in massachusetts

Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). And gambling losses aren’t deductible in the AMT. So you ask, why not declare myself a “professional” gambler. A few years ago that would not have been possible. Luckily a gambler named Robert P. Groetzinger fought the IRS on this issue. In a case that made it to the Supreme Court.

What gambling losses are deductible in massachusetts

Lottery losses are not deductible under Massachusetts law. Lottery losses claimed as itemized deductions on U.S. Form 1040, Schedule A are not allowed on your Massachusetts return. 4 Other Gambling Winnings Enter in Schedule X, line 4 all gambling winnings from casinos, raffles, races, beano or other events of chance, wherever held, and winnings from non-Massachusetts lotteries. Do not enter.

What gambling losses are deductible in massachusetts

The IRS requires U.S. nonresidents to report gambling winnings on Form 1040NR. Such income is generally taxed at a flat rate of 30%. Nonresident aliens generally cannot deduct gambling losses.

What gambling losses are deductible in massachusetts

Gambling losses are not deductible for Connecticut income tax purposes even though, in certain circumstances, they are deductible for federal income tax purposes. 3. May a resident or part-year resident claim a credit against his or her Connecticut income tax for income tax paid to another state on gambling winnings?

What gambling losses are deductible in massachusetts

For instance, you can continue to deduct gambling losses, up to the amount of winnings, on 2017 returns and beyond. The TCJA did, however, modify the gambling loss deduction, beginning in 2018. For this purpose, the definition of gambling losses has been broadened to include other expenses incurred in gambling activities, such as travel back and forth from a casino or track.

Guide for Massachusetts Tax-Aide Volunteers (Mass Manual).

What gambling losses are deductible in massachusetts

The recently amended Expanded Gaming Act (1) in Massachusetts provides additional clarity regarding certain tax rules associated with gambling income for recipients of Massachusetts source gambling income for Massachusetts residents and nonresidents. The Department of Revenue released Technical Information Release 15-14 in November, 2015 which provides some new Massachusetts tax rules and.

What gambling losses are deductible in massachusetts

Gambling losses are not deductible under Massachusetts law. Gambling losses claimed as itemized deductions on U.S. Form 1040, Schedule A are not allowed on your Massachusetts return. Note: Do not report Massachusetts state lottery winnings in Schedule X, line 3. Instead, report them on Form 1, line 8b.

What gambling losses are deductible in massachusetts

No, this is not another nag reminder from me to report your NCAA men's basketball championship winning bets as income when you file your 2015 tax return next year. It is instead a warning to be honest about any gambling losses you claim to offset your Duke vs. Wisconsin office pool or any other winning wagers. Apparently some filers are betting they can get away with using losing lottery.

What gambling losses are deductible in massachusetts

A taxpayer with gambling winnings in Kansas will have to pay the State personal income tax on gross winnings, and cannot even partially offset the winnings via a gambling loss deduction. The result is paying taxes on “phantom” income. The article mentions that no one came forward in opposition to defend the gambling loss deduction. I’m.

What gambling losses are deductible in massachusetts

Yes, it is true that you can deduct losses incurred while gambling from your Federal income taxes. However, there are a couple of very important rules: 1. You can only deduct gambling losses to the extent that you declare gambling earnings; and. 2. You must have receipts.

What gambling losses are deductible in massachusetts

Gambling winnings may be offset from all kinds of waging — legal or illegal. If you win at slots, you may use losses from lottery tickets, horse races, or school raffles. Also, if you file a joint return, losses of one may offset winnings of the other. Note that at the State level, your losses may not be deductible at all. This includes New.

What gambling losses are deductible in massachusetts

Additionally, it seems that losses up to winnings are not deductible on your MA state return: For Massachusetts purposes, losses up to winnings are not deductible even if they may be claimed as an itemized deduction on U.S. Form 1040, Schedule A.

A Guide to Individual Income Taxes in Massachusetts.

Massachusetts allows you to take many of your federal above-the-line deductions on your state return to arrive at a lower adjusted gross income for tax calculation purposes. However, IRA contributions are not deductible above the line. This means you are taxed on any contributions made. As of 2019, the state offered no standard deduction.Gambling losses are indeed tax deductible, but only to the extent of your winnings. This requires you to report all the money you win as taxable income on your return. However, the deduction for your losses is only available if you are eligible to itemize your deductions. If you claim the standard deduction, then you can’t reduce your tax by your gambling losses.While the IRS does not have a gambling losses tax, it does allow for you to deduct gambling losses on your tax return in the form of a miscellaneous deduction. To deduct your losses from gambling, you will need to: Claim your gambling losses on Form 1040, Schedule A as Other Miscellaneous Deduction (line 28) that is not subject to the 2% limit.


Gambling losses are no longer deductible as an itemized deduction for purposes of the Ohio income tax, effective immediately. Gambling losses became deductible under Ohio tax law beginning January 1, 2013, as part of legislation expanding commercial gambling in Ohio.For Massachusetts purposes, losses (up to as much as winnings) aren't deductible even if they may be claimed as an itemized deduction on U.S. Form 1040 (Schedule A). The exception is gambling activities that are considered a trade or business. You can deduct wagering losses (for as much as you won) from your personal income taxes, but only if.