Re: Need Help With Taxes
I don't think I would pay to much attention to Louie, as a lot of what he says is wrong.
Yes, many States want to tax your winnings but have no provision for writing off your losses. Indiana comes to mind, as they have started clipping poor slot machine players with a nice State tax withholding when a jackpot is hit, and no way the players can write off their slot losing at the end of the year.
I am not a WI tax expert, you should consult one, but here is what I would do in your situation. Pay the Feds by showing your winnings ($5,362) and deducting your losses ($3,568) paying your federal tax on the net ($1,794).
Net your wins/losses on State Form and show $1,794 in winnings and pay your state tax on that. This amount will match the amount you are paying Fed Taxes on so you shouldn't flag any audits.
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