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> I could shorten that to “why is paying income tax painful

Yes, that was my point.



Welp either I’m dense or you didn’t make a point. We can go with the former.

Cheers.


Sorry, I just meant the original comment sounded like there was something especially onerous about income taxes on gambling winnings compared to tax on other types of income.


I dunno, it’s hard to describe. Imagine $10,000 on $47 and realizing that half that money never existed. I don’t mind paying the taxes on it, but claiming gambling winnings basically defeats any sensible financial tax strategy.

I think I’m the only person I know who claims them. I’m about to give it up because I never needed the money, it’s just fun to beat the house. The taxes really do suck.


You’re right, this website educated me on some of the inconsistencies/drawbacks compared to other income:

https://www.lhd.com/the-edge/if-you-are-a-recreational-gambl...


As a US taxpayer, if you win $10,000 on one day and then lose $10,000 the next day gambling, then you have to report $10,000 net gambling income for the year and pay taxes on that - even though you actually made zero.


Yes, this website educated me on some of the inconsistencies/drawbacks compared to other income:

https://www.lhd.com/the-edge/if-you-are-a-recreational-gambl...


Not true if you itemize.




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