4 ms·
> I don't really buy this argument since they could just tax winnings and offer no deductions, but hey ho. I don't think this would make sense. If I walk into
by everforward 3y ago
> I don't really buy this argument since they could just tax winnings and offer no deductions, but hey ho.
I don't think this would make sense. If I walk into a casino with $200 and then proceed to lose $100 and win it back 10 times, then I lose it all and walk out, that tax law would say I had "won" and had to pay taxes on $1,000 even though any reasonable person would say I had actually lost $200.
In practical terms, I think it would absolutely ruin gambling addicts. This makes it effectively impossible to actually net profit, and I'm doubtful they'll stop.
- erhaetherth 3y agobut in the US it is taxed? i don't know how, I assume it's based on what you walk out with. or maybe just the big winnings? i don't know.
- everforward 3y agoThey are taxed, but losses are deductible. It's taxed basically the same as everything else. At the end of the year you tally your earnings and losses, subtract the losses from the earnings and pay taxes on that amount or $0, whichever is higher (i.e. you can't deduct more losses than you had in winnings). I googled because I was curious and found an article about it [1]. It's similar to PayPal/Venmo/etc. Once your winnings meet certain criteria, the casino has to give you an IRS form (W-2G) and they presumably send another copy to the IRS. The withholding part isn't super clear, but I guess under some circumstances they also withhold 24% of those winnings to pay federal taxes. 1: https://www.hrblock.com/tax-center/income/other-income/gambling-winnings-tax/ https://www.hrblock.com/tax-center/income/other-income/gambl...