Hawaii residents now taxed on Vegas winnings even if they lose

A new bill signed into law this month by Gov. Linda Lingle has some frequent Las Vegas visitors and local CPAs scratching their heads.

Under House Bill 1495, no longer will gamblers be able to offset their winnings with their losses for Hawai’i state income tax purposes. Previously gamblers would be taxed only on their net winnings, but now they will be taxed on gross winnings.

A Hawai’i resident who wins $10,000 in a year, for example, and loses $9,000 in the same year used to be taxed only on the $1,000 in net winnings. Under the new law, that resident would be taxed on the full $10,000 in winnings.

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1 Response to Hawaii residents now taxed on Vegas winnings even if they lose

  1. Quiddity says:

    That was a valuable story, thanks for showing it. I'm a liberal who thinks some taxes should be raised (mainly on the wealthy) but think the Hawaii law is totally wrong.

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