Don't wager on horse racing if you live in ILLINOIS !!!
 

I received a letter today stating I owe back Illinois state back taxes. Illinois does not allow gambling losses to be deducted against gambling winnings for state income tax purposes. Total bullshit, so I have to pay income tax on income I never had !!! So I had 30K in W-2G's and 30K in losses, well Illinois expects to collect tax on that 30K.

Here is a guy with a similar problem, with Illinois income tax response...I'm done, f*ck these stupid a-holes in Springfield. Do they think everyone who walks into a riverboat is paying tax?

http://www.revenue.state.il.us/Legal...7/ig070007.pdf

Well I sure wouldn't bet exotics over 300-1.

Change you can believe in.

tell them you know charlie rangel and he will speak to obama to get it fixed

It comes to about $900 at the 3% number, and probably end up being half that. And probably less that, if you have 30k in signers, your doing just fine

You are going to get hit with some late fees also.

You understand I didn't win anything...30K in signers and 30K in losses, so I should just give them 1K on no f*ck'n income...what so I can bet horses? You would have to be an addict or f*ckin brain dead to bet a horse in Illinois.

Did you count all the $1 exacta boxes that you won with?

This is there way to actually get revenue off gambling income. It isn't an exact science, but I would rather not have to keep unbelievably detailed records for them and just pay the 3% on the signers.

It is not just Illinois. I have the same situation in Massachusetts and a much higher state tax rate.

Paul

You don't get it, it has nothing to do with record keeping, if you have a W-2G you pay tax on it in Illinois, whether or not you have losses to offset it. Federal you can offset losses, Illinois you can't !!!

with obama coming from Ill will the federal offset for losses be taken away soon as well?

BONES! ok only very few will get it.......IL joke

I do get it, and I am very aware of the situation. It is the price of a horse player man, the only way around it is to get someone to sign for you.....

and when and if IL increases its State tax by 50% (Proposed right now) it gets a lot worse. !-888-888-BONES. www.bones.com think I'm on to something...

Pay someone to sign for you through a ADW ? Or if you hit for over 5K with the 25% withholding what do you do then? Forget it man, you are asking for trouble if you play in this state.

I hit a P6 for 30k, the State took there cut and I was able to use that towards my tax liability....

Isn't that some legend that walks around Arlington signing for people?

just a ghost like John in the walker. RIP

move to Arizona like most folks from the midwest do. We can deduct losses here.

So your ADW withheld 25% for fed and 3% for the state?

So let's say you lost 15K of the 30K through the rest of the year, you pay ILLINOIS tax on the 30K and your fine with that? Man, you must love those pricks in Springfield.

be happy w/the 30K and don't sweat the $450 lost to the State because you can't deduct?

It was on-track but yes, they both deducted I think. I can't remember it was so long ago.

Dude, I know it sucks, but it is life. I personally feel ok with it because I would rather not have to write down every bet I cash as revenue which is TECHNICALLY what you are suppose to do.

It's not $450, its (3% on 30K) $900 plus penalty, when I didn't actually show a profit. If you don't have any income from wagering why should you have to pay a tax on it...in Illinois you have to, that's why.

Tom they can pull your Twin Spires account to the minute, year-to-date. That has to be some proof. Good or Bad.....

In IL you pay a tax on EVERYTHING! Bastardized Land of Lincoln and all.

they take out 28%... 25 to feds, 3 to state

I keep track of every bet made, profit/loss of every wager, doesn't matter. YOU CANNOT DEDUCT LOSSES AGAINST YOUR W-2G's in ILLINOIS. You hit a Tri for 1K and lose the grand the rest of the day, you'll owe the state $30 and the feds $0 !!!

I know, the only safe way is to not use a card or anything then they would have no clue.

if you hit it on track you'd have to buy a round that probably would be more than $30! You won! Relax!!

preaching to the choir I know

The situation sucks but did anyone catch this line about the idea of deducting gambling losses, total government they know whats best for you mentality:

"many people might consider more worthy of allowing"

So what he saying is you are a total loser betting on horses and you have some nerve to think you can deduct those loses when we dont even allow people to deduct other things they deem morally correct. That is a joke.

Its coming, the government is going to tell you what kind of soda pop to drink if you want to see a doctor.

It is a joke, hey I don't mind paying my 3% state tax on anything that I actually won, but when they start telling me that I have to pay 3% on any W-2G, it is time to quit. What if I played a Pick 6 for $1500 and it chalked out and paid $600 with conso's, I end up losing $900 and get hit with a W-2G that I owe state tax on. :zz: It is absurb !!!

Look at it this way... you can pay the 3%, or you can pay some suspect character at the track to take your winning ticket, and sign for it... His cut will be most likely over the 3% in question.... either way, you are gonna pay when you cash a decent winning ticket.

You've got 5 choices.

1. Go into politics, get elected and change your State Laws.
2. Move to a state with no state taxes.
3. Stop using ADW's and get someone to sign for you.
4. Quit gambling.
5. Do nothing and stfu.

We can all sympathize with your plight, it sucks.

Just pay them you cant win......... 30K in signers and you still lost money why are you playing???????????:zz:

On second thought ,,,,,,,,,,,somebody has to pay taxes,



























It may as well be you.;)

Same thing happened to me last year.

So you got a letter from IL. dept. of revenue?

Very easy to do if you play everyday and play a lot of exotics. Hey if you are a Win bettor you'll never have this issue.

No, I paid my taxes the way they were supposed to be paid in the first place according to the tax code, so they didn't need to send me a letter.

I highly doubt you did, because any wager you made is subject to state income tax the way the law reads. Not only W-2G's, but any wager. You might have claimed your W-2G's on your Ill. state form and paid your 3% on those (without taking losses into account), but in reality the state could go after you for ANY wager you profited on...still using that twin spires card?

Excerpt from Article:

* Most taxpayers believe gambling proceeds are immune from tax, unless they receive a Form W-2G.

* Each pull of a lever or push of a button on a slot machine, hand of blackjack or spin of a roulette wheel is an individual wager that may result in gambling winnings.

* To prove gambling losses and taxable income, taxpayers are subject to rules of proof, recordkeeping, estimating and credibility.

Most taxpayers are unaware of the reporting requirements for gambling wins and losses. This article explains how to calculate and prove taxable income, net winnings and basis or losses claimed.

http://www.wgntv.com/news/wgntv-hors...,6407658.story

From the article...
The board voted unanimously to license three California companies to take electronic bets from Illinois residents through computers, phones, interactive televisions and other mobile devices. State officials said the law will enable them to collect taxes on about $100 million in unauthorized online horse wagers each year in Illinois.

Gov. Pat Quinn signed legislation allowing online horse betting in August. Before the legislation, Laino said the board estimated about $100 million in unauthorized online horse wagers were made annually in Illinois. The new law allows for random account audits and broad oversight of online horse betting, Laino said.

So any bets made previously with Youbet, TVG, or TwinSpires were made illegally before this new law went into effect in August?