Comments on: Need the New Edition Tax Book?

By: Derek

Derek — Thu, 21 Mar 2019 14:49:34 +0000

My concern is a diary for my daily trips. Any chance maybe you and Bob Dancer can get together and collaborate on a diary to sell? At least we know its coming from highly reputable sources.

By: DanMin

DanMin — Fri, 15 Mar 2019 17:45:57 +0000

The IRS reporting and audit procedures on gambling “winnings” falls very harshly on recreational seniors of modest means. They push full reporting of Form W-2G totals as income although not required in all cases. Many seniors no longer itemize tax deductions, so little or no write-off for gambling losses. This increase in gross income can also increase the amount of Social Security Benefits subject to Federal (State?) Income Taxes. Additionally, any local Senior Citizen Property Tax Exemptions may be reduced or lost entirely. Best to keep a “session” win/loss diary for those welcome reportable Jackpot scores. BUT, be prepared to hear from our IRS friends.

By: Kevin Lewis

Kevin Lewis — Sun, 10 Mar 2019 07:32:03 +0000

The overarching question for me is and has been, do I file a Schedule C? The rules for this are vague and often contradictory. It seems to even come down to the individual you talk to/handles your case. Whether your gambling is an “income-producing activity” or “an activity that (just happened to) result in income” is a major distinction, and despite the 46,097 pages of the tax code, subjective as hell.

I have always said that win something, pay us, lose something, don’t come crying to us or try to deduct it, is grossly unfair. Why shouldn’t losses offset wins/profits/”normal”income, and why should gambling income be considered differently from other income? If I am forced to pay taxes on my $10,000 win (which is added to my other income) in Year 1, why shouldn’t I be able to subtract my $10,000 loss in Year 2 from my other income? The IRS wants it both ways!

So I cheerfully admit that I fudge the rules whenever I can, and knowing that it’s unlikely that the IRS great white shark will even bother to eat a minnow like me, I’m not really worried. If they audit me, I can drown them in barely intelligible paperwork, and my case won’t be resolved until a decade after I’m dead. If then.