Birmingham, Michigan
2051 Villa Road, Suite 105
Birmingham, MI 48009
Phone: 248-203-9100
Toll-Free: 866-236-4TAX
Email: info@freemantaxlaw.com
Gambling poses a number of unique tax issues. As a result of these issues, professional gamblers' tax returns may be scrutinized very carefully by the IRS and state tax authorities. Gamblers are often the target of audits. Both professional gamblers and nonprofessional gamblers should work with an experienced tax attorney to ensure compliance with federal and state regulations. The Law Offices of Jeffrey S. Freeman is located in Birmingham, Michigan and represents gamblers throughout the state and beyond. Our lawyers have a comprehensive understanding of tax laws and how they apply to gamblers.
A common, problematic scenario for gamblers is as follows: A gambler wins $500,000 in a year, while losing $300,000. Intuitively, a gambler may believe he or she should pay only income taxes on the net earnings of $200,000. This is mistaken. Under the Tax Code, all gambling winnings are considered to be taxable income. This means that a gambler could face tax liability for up to $500,000.
Thankfully, this type of catastrophic result can be avoided. The IRS allows gambling losses to be deducted, so long as a gambler itemizes his or her deductions. Additionally, the amount of losses on any tax return cannot exceed the amount of gambling income. While the IRS allows gamblers to deduct gambling losses, Michigan law does not allow gamblers to deduct losses. This tension between state and federal law can create problems for Michigan gamblers.
Our law firm can represent you at any point in a tax controversy. If you are the subject of an audit, we can protect your rights. If the IRS or the Michigan Department of Treasury is disputing the amount of tax you owe, our law firm can argue forcefully on your behalf. Our determined, strategic counsel regularly leads to successful results for our clients.
To Learn More About Taxes on Gambling Winnings, Contact our Law Firm
The earlier our law firm is involved in your case, the more options you will have. Please contact our office with any questions 1-866-236-4TAX or by e-mail.
