This is How the Tax Plan Will Screw the Small Time Gambler

[Midwest Player]

Okay, I'm going to do it by the numbers with an example.

Example #1: using present tax law for a married couple filing jointly no children.
Assume for both examples:
$80,000 in wages and other taxable income
$25,000 in gambling winnings
$ 8,000 in gambling losses
$14,000 in itemized deductions before any gambling losses
$ 8,100 in personal exemptions ($4,050 each)

Then: under existing law.
$80,000 Income (before gambling)
$25,000 Add: gambling winnings
105,000 Subtotal
$22,000 Subtract: total itemized deductions including losses (2017 standard deduction is 12,700)
$ 8,100 Subtract: two personal exemptions
$74,900 Total Taxable Income under existing law. (This puts you in the 15% marginal tax rate)

Example #2: Now same assumptions under new GOP tax law.
$80,000 Income (before gambling)
$25,000 Add: gambling winnings
105,000 Subtotal
$24,000 Subtract: new standard deduction (total itemized deductions are only $22,000)
$ -0- Subtract: two personal exemptions (there are no personal exemptions under new tax law)
$81,000 Total Taxable Income under GOP law. (This puts you in the 22% marginal tax rate)

Wow, what a screwing for the little guy. The above numbers are very realistic and is something that could very likely happen. In fact my winnings this year are just a little over 3 times my losses. Of course, you might want to try filing as a professional gambler on Sch C.

[Frank Galvin]

For guidance as to whether one qualifies to claim “professional gambler status”, you may want to read, https://www.irs.gov/pub/irs-utl/am2008013.pdf

See, also, https://www.ustaxcourt.gov/InOpHisto...in.TCM.WPD.pdf

[BJPloppy]

For guidance as to whether one qualifies to claim “professional gambler status”, you may want to read, https://www.irs.gov/pub/irs-utl/am2008013.pdf

See, also, https://www.ustaxcourt.gov/InOpHisto...in.TCM.WPD.pdf

Thanks Frank.

[Three]

Example #1: using present tax law for a married couple filing jointly no children.
Assume for both examples:
$80,000 in wages and other taxable income
$25,000 in gambling winnings
$ 8,000 in gambling losses
$14,000 in itemized deductions before any gambling losses
$ 8,100 in personal exemptions ($4,050 each)

Then: under existing law.
$80,000 Income (before gambling)
$25,000 Add: gambling winnings
105,000 Subtotal
$22,000 Subtract: total itemized deductions including losses (2017 standard deduction is 12,700)
$ 8,100 Subtract: two personal exemptions
$74,900 Total Taxable Income under existing law. (This puts you in the 15% marginal tax rate)

Example #2: Now same assumptions under new GOP tax law.
$80,000 Income (before gambling)
$25,000 Add: gambling winnings
105,000 Subtotal
$24,000 Subtract: new standard deduction (total itemized deductions are only $22,000)
$ -0- Subtract: two personal exemptions (there are no personal exemptions under new tax law)
$81,000 Total Taxable Income under GOP law. (This puts you in the 22% marginal tax rate)

Wow, what a screwing for the little guy. The above numbers are very realistic and is something that could very likely happen. In fact my winnings this year are just a little over 3 times my losses. Of course, you might want to try filing as a professional gambler on Sch C.

It looks to me like he got screwed by the loss of exemptions and got some of it back by getting a higher standard deduction than he would have if he had itemized his losses under the old law. It isn't the gambler getting screwed there, it is everyone getting screwed. But there are other parts of the tax law to figure into things as well.

[21forme]

Why are you posting political threads like this, pretending they are informational?
The Trump tax plan, GOP tax law, etc.

If you want to post your theoretical examples, please omit the editorializing.

[ZeeBabar]

Why are you posting political threads like this, pretending they are informational?
The Trump tax plan, GOP tax law, etc.

If you want to post your theoretical examples, please omit the editorializing.

Are you the moderator now? If not, why are you getting on a thread that you do not like? The thread is gambling and BJ and taxes, quite appropriate even if it includes a bit of editorializing. Learn to move on.

[21forme]

Are you the moderator now? If not, why are you getting on a thread that you do not like? The thread is gambling and BJ and taxes, quite appropriate even if it includes a bit of editorializing. Learn to move on.

Nobody asked you. If you don't like my comment, just move on and stop trolling and stalking 100% of my posts. STFU and crawl back into your shoebox.

[Norm]

I removed the political name from the title. However, much as I dislike political discussions here, areas like effect of taxes on gamblers, civil forfeiture, and gambling laws are inherently political and of importance to the community.

[DSchles]

Okay, I'm going to do it by the numbers with an example.

Example #1: using present tax law for a married couple filing jointly no children.
Assume for both examples:
$80,000 in wages and other taxable income
$25,000 in gambling winnings
$ 8,000 in gambling losses
$14,000 in itemized deductions before any gambling losses
$ 8,100 in personal exemptions ($4,050 each)

Then: under existing law.
$80,000 Income (before gambling)
$25,000 Add: gambling winnings
105,000 Subtotal
$22,000 Subtract: total itemized deductions including losses (2017 standard deduction is 12,700)
$ 8,100 Subtract: two personal exemptions
$74,900 Total Taxable Income under existing law. (This puts you in the 15% marginal tax rate)

Example #2: Now same assumptions under new GOP tax law.
$80,000 Income (before gambling)
$25,000 Add: gambling winnings
105,000 Subtotal
$24,000 Subtract: new standard deduction (total itemized deductions are only $22,000)
$ -0- Subtract: two personal exemptions (there are no personal exemptions under new tax law)
$81,000 Total Taxable Income under GOP law. (This puts you in the 22% marginal tax rate)

Wow, what a screwing for the little guy. The above numbers are very realistic and is something that could very likely happen. In fact my winnings this year are just a little over 3 times my losses. Of course, you might want to try filing as a professional gambler on Sch C.

Don't know how you play blackjack, but winning sessions being more than triple losing sessions doesn't seem very realistic to me. How frequently you win, compared to how frequently you lose, and how much you win, when you win, compared to how much you lose, when you lose, are normally much closer than in your examples.

And when you rejigger them that way, the taxes can and do come out very differently. It's easy enough to concoct a scenario that favors one point of view, but telling the complete story might be fairer.

Don

[BoSox]

And when you rejigger them that way, the taxes can and do come out very differently. It's easy enough to concoct a scenario that favors one point of view, but telling the complete story might be fairer.

Very good catch Don! Now I know why you stayed away from the Politics Page on the other site all of these years.

[Norm]

Well, there is no way to tell the whole story. The IRS is still trying to figure out the bill. That's what happens when you pass a major tax bill in late December. The Reagan bill was passed Aug. 4. The Clinton tax act Aug. 5.

[Three]

In fact my winnings this year are just a little over 3 times my losses.

Don't know how you play blackjack, but winning sessions being more than triple losing sessions doesn't seem very realistic to me.

The grain of salt is the year is 3 days old.

[Midwest Player]

Why are you posting political threads like this, pretending they are informational?
The Trump tax plan, GOP tax law, etc.

If you want to post your theoretical examples, please omit the editorializing.

I did notice that Norm edited out the word "Trump", but everything I posted is true and will affect a blackjack player if they file their taxes honestly. All I got to say is the Democrats did not pass this tax bill. However, I did post this also over at BJ21 under politics. I haven't looked over there yet.