Q) My husband won 14,000.00 at casino in Delaware we live in Md. Can he claim all the losing lotto tickets he has lost this year to wash out taxes owed for this 14,000.00 winning. Also what is the tax percentage to Maryland and Federal for tax withholding on this amount.
A) No, you cannot claim losing lottery tickets to offset gambling winnings. The IRS considers gambling winnings and losses to be separate events, and you cannot offset one with the other. However, you may be able to deduct your gambling losses from your other income, up to the amount of your gambling winnings.
The tax percentage for gambling winnings in Maryland is 6%. The tax percentage for gambling winnings in the federal government is 25%. However, you may be able to reduce your tax liability by claiming the standard deduction or itemizing your deductions.
If your husband won $14,000 at a casino in Delaware, he will owe $840 in taxes to Maryland and $3,500 in taxes to the federal government. However, he may be able to reduce his tax liability by claiming the standard deduction or itemizing his deductions.
Here are some tips for reducing your tax liability on gambling winnings:
- Claim the standard deduction. The standard deduction is a dollar-for-dollar deduction from your taxable income. If your gambling winnings are less than the standard deduction, you may be able to reduce your tax liability by claiming the standard deduction.
- Itemize your deductions. If your gambling winnings are more than the standard deduction, you may be able to reduce your tax liability by itemizing your deductions. Some common deductions that you may be able to claim include mortgage interest, property taxes, charitable contributions, and state and local taxes.
- Consider a tax professional. If you have questions about how to reduce your tax liability on gambling winnings, you may want to consider hiring a tax professional. A tax professional can help you understand the tax laws and help you file your taxes in a way that minimizes your tax liability.