Delaware preparing to take sports bets

Hawaii's accidental tobacco tax holiday

ES time means EFTPS enrollment time

Delaware preparing to take sports bets

Sunday, May 17, 2009

While the hubby and I were checking out the sports books in Las Vegas last week, on the East Coast another state legalized betting on athletic events.

Shortly after Delaware Gov. Jack Markell signed his state's new sports betting bill into law, Delaware's three casinos began making plans to have the gambling option operational by the start of the NFL season.

The National Football League (NFL), however, is working on ways to stop the First State from becoming the first state east of the Mississippi to accept sports bets.

League spokesman Brian McCarthy said the NFL is "not ruling anything out" when it comes to legal action to halt sports betting's implementation in Delaware.

The NFL already has filed a brief with the Delaware Supreme Court. Because sports betting is more skill than chance, the NFL's lawyers are arguing that "the sports lottery proposed by the Governor is not a constitutionally permissible lottery" under state law.

Been there, bet that: Delaware's been here before. In 1976, it launched its first sports lottery.

The NFL sued back then, too. Thirty-two years ago, the state's high court ruled that since "chance was the dominant, determining factor," the sports lottery, which consisted purely of parlays where bettors chose multiple games in order to win, was allowed under state law.

In the end, it was finances, not legal challenges, that doomed Delaware's first sports lottery. The state pulled the plug on sports betting back then after just one year because it wasn't bringing in as much money as lawmakers had hoped.

But that sports betting foray allowed Delaware to be grandfathered in (along with Oregon, Nevada and Montana) under a 1992 federal law that bans other states from establishing sports gambling.

What bettors want: If early reports are an indication, East Coast bettors don't want just parlay betting.

"These people tell us they'd be more inclined to make a straight bet, say, putting $100 against the spread on the Eagles over the Giants than play some sort of parlay or lottery-type game," Delaware Park general manager Andrew Gentile told Casino Gambling Web.

Judging from the state's sports gambling venture 30-plus years ago, the wishes of patrons just might carry a lot more weight now. Gambling data show that the more gambling options a person has, the better chance they will spend more of their entertainment money.

"There is no doubt that if Delaware goes to full scale sports betting like what is offered in Las Vegas, they have a chance to become one of the most popular gambling destinations on the East Coast," said observer Mike Frandle, "If it is just parlay bets, there is a likely chance that people will just continue to bet through their local bookies."

IRS' gambling record keeping rules: Here in Texas, gamblers are still waiting for Lone Star lawmakers to allow them to place their bets. Bills this legislative session to legalize slots, casinos, poker rooms and Indian gaming once again failed.

So folks will continue to head to neighboring Louisiana or, as the hubby and I just did, to Las Vegas.

Regardless of where you go to gamble, remember that your winnings are taxable income. You can,however, deduct your losses, up to the amount of your winnings, to help ease the tax bite.

IRS Publication 529 suggests you keep a gambling diary, recording your winnings and losses separately.

Actually, the IRS says you "must" keep such records if you want to guarantee that you meet reporting requirements and ensure your deductions aren't disallowed.

According to Publication 529, for tax purposes your gambling diary should contain at least the following information.

The date and type of your specific wager or wagering activity. The name and address or location of the gambling establishment. The names of other persons present with you at the gambling establishment. The amount(s) you won or lost.

In addition to your diary, you should also have other documentation. If you win enough, you'll get a Form W-2G, Certain Gambling Winnings, from the paying casino, track or other payor.

You also can verify your winnings by showing wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals and statements of actual winnings or payment slips provided to you by the gambling establishment.

For certain wagers, the IRS also offers some specific record keeping suggestions.

Keno: Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records.

Slot machines: A record of the machine number and all winnings by date and time the machine was played.

Table games: Record the number of the table (blackjack, craps, poker, baccarat, roulette, wheel of fortune, etc.):at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage.

Bingo: A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the casino, parlor, etc.

Racing: A record of the races (horse, harness, dog, etc.), amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.

Lotteries: A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements.

I must confess that I didn't track our small gambling foray in Vegas. But I promise I will report the $67 dollars I won playing one of the Hilton Casino's Texas Tea slot machines.

Posted on Sunday, May 17, 2009 at 04:28 PM in Gambling, Sports, State/Local, Tax Tip, Taxes | Permalink | Comments (4)

Comments

You can follow this conversation by subscribing to the comment feed for this post.

Im not sure why the NFL is so interested in making sports betting so difficult. They may not want to admit it but gambing and fantasy football are what make the NFL so popular.

Posted by: Zack Nutter | Sunday, November 07, 2010 at 06:23 PM

Dan,
Questions always welcome!

The NFL says that sports betting involves skill. YOu have to know the teams, personnel and coaches, as well as injury situaitons (which the NFL happily announces), records, etc. Being successful is not just picking teams at random, although sometimes that seems to work as well, at least with my teams!

But the state high court said back in the 70s that the type of betting allowed then, parlay bets, were simple chance and that made the original sports lottery system OK under Delaware law.

This time, the governor has endorsed the parlay system again, but it seems that casinos, wanting a bigger take, want to go the Las Vegas route. Which would make the NFL argument more viable.

We'll just have to wait and see what shakes out this time around.

Kay

Posted by: Kay | Tuesday, May 19, 2009 at 05:43 PM

***Because sports betting is more skill than chance***

Are you sure this is correct, or is this a typo? Just curious, because that would be a big deal in my little gambling legislation world.

A few sentences later you say:

***Thirty-two years ago, the state's high court ruled that since "chance was the dominant, determining factor," the sports lottery, which consisted purely of parlays where bettors chose multiple games in order to win, was allowed under state law. ***

not trying to call you out in my first comment on this site, but just wanting to get it straight since the skill vs. luck issue always seems to be important these days.

Posted by: dan michalski | Tuesday, May 19, 2009 at 02:33 AM

Thanks for the info about betting :)

Posted by: Fred Peterson | Monday, May 18, 2009 at 01:31 AM

The comments to this entry are closed.

Today's Tax Tip

4 September tax moves — Sept. 1 marked the arrival of Meteorological Fall, but it's still pretty darn hot across much of the United States. As we await the crisp chill of autumn, here are four cool tax moves to make this month. (Sept. 3, 2024)
The 2024 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
LinkTree

My Other Accounts

Tick ... Tick ... Tick

Tax Season 2024 continues!

We made it. Tax Day 2024 is finally over. For most of us. An estimated 19 million taxpayers got an extension to file their 2023 tax year return. That's fine.
In fact, the Internal Revenue Service appreciates some of us spreading out our filings. It gives the agency time to process the surge of returns
that came in on April 15.

But enough about Uncle Sam's tax collector and its issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your still adding up 2024 tax bill.

Finally, keep an eye on the countdown clock below. It will help you track yet more days tick, tick, ticking off toward that absolutely final fall filing due date.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

🍁 Hello 🍁 September 🍁
🍂 Fall 🍂 is 🍂 here! 🍂

OK, fall’s not here yet, at least not here in Texas according to still quite-warm temperatures. But forecasters say cooler weather — like highs in the 80s; yes, everything, especially weather, is relative — is on its way, and that meteorological promise gives up hope.

via GIPHY

As we get ready for the promised bit of chill, September also is a great month to make some cool tax moves, like those listed below. So, grab a sweater (or not yet), and let's go!
Sept. 1: Today is Meteorological Fall, the three months from Sept. 1 through Nov. 30 when days get shorter and cooler, but not cold. It's also the start of the annual National Preparedness Month. This year’s theme is “Start a Conversation,” since it's important to talk with your loved ones about potential emergencies. It's also critical to be prepared, as the Atlantic and Gulf of Mexico hurricane season usually peaks in September.

We’ve already had three tropical systems do enough damage to prompt Federal Emergency Management Agency (FEMA) major disaster declarations. The 2024 tropical storm season’s second named storm, Hurricane Beryl, landed as “just” a category 1 on the Texas coast, but still took 38 souls and left Lone Star State residents facing an estimated $30 billion in damages.

Hurricane Debby made two U.S. landfalls, in the Big Bend area of Florida and then again in South Carolina before moving up the Eastern Seaboard, producing disaster declarations all the way up to Vermont. Tropical Storm Ernesto, followed, slamming the U.S. territories of Puerto Rico and the U.S. Virgin Islands, as well as spawning deadly rip tides along East Coast beaches as the storm moved toward Bermuda.

And, coinciding with Meteorological Fall, we’ve still got three months of the 2024 hurricane season to go!

That has coastal residents on edge, since Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center say we could get 17 to 25 total named storms, which are those with winds of 39 mph or higher. Of those, eight to 13 are forecast to become hurricanes, meaning winds of 74 mph or higher. Four to seven becoming major hurricanes; that’s category 3, 4 or 5, with winds of 111 mph or higher.

Regardless of the count, it only takes one to wreck your world. If you haven’t already, get ready for not just tropical systems, but whatever dangerous weather that’s common where you live. The countdown clock above can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms. You also might want to check out the ol' blog's special Storm Warnings collection of special pages with posts offer tax advice on preparing for, recovering from, and helping those who sustain damages from the many ways that that weather goes wild.

Sept. 2: Happy Labor Day! This annual celebration of workers' contributions is a federal holiday and day off for many.

When you get back to work after this three day holiday, take a few minutes to check the federal tax amount that’s coming out of your paychecks. If you need to adjust your withholding so that you have the most accurate amount of taxes withheld, now is the time to do that. Submitting a new W-4 early this month will mean any changes are spread over the last four months of the year, making any impact less noticeable.

Sept. 3: If you live in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland, or Union counties in Ohio, today is your Tax Day. The Internal Revenue Service granted individual and businesses in those counties tax relief since they were declared major disaster areas following a tornado outbreak in March.

Sept. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

And if you got at least $20 in gratuities in August for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Sept. 16: Today is the deadline to pay your third installment of estimated taxes. This tax is due on income that’s not subject to withholding, such as investment earnings or contract work. Most estimated tax filers make the payments four times a year. The September payment is for such earnings received in June, July, and August. It’s usually on the 15th, but since that was Sunday, the deadline is pushed to the next business day — today!

Sept. 23: Sept. 22: The Autumnal Equinox arrives today at 8:44 a.m. Eastern Daylight Time in the Northern Hemisphere, marking the first day of Fall for all us who don't follow the meteorological fall calendar. Adjust for your time zone, since the equinox occurs at the same moment worldwide. It's also a go-to day to think about home maintenance that will help you weather the coming colder weather. The Inflation Relief Act includes extension of older and addition of new energy-related tax breaks, including some for residential energy improvements.

Sept. 30: Wow! Where did September go? That’s a good question to ask if you got an extension to file your 2023 tax return earlier this year. The last day of this ninth month means that your absolutely final Oct. 15 due day is another month closer. So you might want to get to work on that Form 1040 now. The easiest way to do do is to use tax software and electronically file.

If your adjusted gross income is $79,000 or less, you should check into Free File, the no-cost online tax preparation and electronic filing program offered by the IRS and its Free File Alliance partners. It’s open through the Oct. 15 extension deadline. This year, eight tax software companies offer programs to qualifying taxpayers.

Note that the Free File $79,000 or less income threshold applies to all filing statuses. If your income is too high, you still can file for free by using Free File's Free Forms option.

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2024 page.

What are you looking for?

Looking for something in particular? Start with the Table of Contents.
Or check out the Archives, where you can review posts by month and category. Or enter specific keywords in the box below to search
Don't Mess With Taxes.

Search

Subscribe:
E-mail, RSS or both!

Enter your Email

Powered by FeedBlitz
RSS

Affiliate Books

The Truth
About Paying Fewer Taxes
Are you a tax geek? Got tax geek friends? Do you or they just want to make sure you don't overpay the IRS? Then my book, "The Truth About Paying Fewer Taxes," is for all y'all.

Look for it on bookstore shelves
or order a copy (or two!) from
Amazon or Barnes & Noble.
Find out more about my book and excerpted chapters at the FT Press
Truth About Paying
Fewer Taxes Web page.
You can read more
of Kay's tax insights in ...

Kay Bell helps you build
a solid tax foundation in
"Personal Finance: An Encyclopedia
of Modern Money Management"

Kay Bell breaks down taxes and
estate planning for millennials in
"Future Millionaires' Guidebook"

A collection of Kay Bell stories
is included in
"The Gambler's Guide to Taxes:
How to Keep More
of What You Win"

Tax Reading Room
You also might enjoy these other tax tips from some of my tax-writing colleagues:
J.K. Lasser 2024 Taxes
Taxes for Dummies 2024
Tax Savvy for Small Business

~~~~~~~
Don't Mess With Taxes
is an Amazon Affiliate.
If you click on the product links above and/or buy the items,
I will be compensated.

0, 1, 2, 3, 4, 5, 6, 7, 8, 9 ...

Taxes are all about the numbers.
Check out these (mostly) weekly
By the Numbers figures.

Kudos Et Cetera

National Association
for Women in Communications
Winner, Best Personal Blog
2012, 2014 & 2017
Plutus Financial Bloggers Awards
Celebrating the Best
in Personal Finance
Winner, Best Tax Blog
2011 and 2013
Lifetime Achievement Nominee 2020

I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer.

The content on Don't Mess With Taxes is my personal interpretation and opinion based on my study and understanding of tax laws, policies, and regulations. It is provided for your private, noncommercial, educational, and informational purposes only. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

Privacy Policy

Wondering what happens to your information once you subscribe? Don't worry. Don't Mess With Taxes respects your wish not to be a mere data source. Check the ol' blog's privacy policy at the Table of Contents page, as well as on the separate Privacy Policy page.

©©©©© & ®®®®®

Don't Mess With Taxes®
is a registered trademark
of S. Kay Bell.

All content on this site is
© 2005-2024 S. Kay Bell
dba Write Here, a division of
SKB Editorial Services, LLC
And a bit of housekeeping.
Note 1: Some of the links on this site
are affiliate links. That means that
if you click through from
a Don't Mess With Taxes link
and then buy the product,
I receive a commission.

Note 2: Links to outside content
might become inactive due to changes
at the copy's originating website.
If you discover dead links, please e-mail me the details. Thanks.

Note 3: The banner art for the ol' blog
is courtesy Pictures of Money
via Flickr Creative Commons.

Blog powered by Typepad
Member since 11/2005

COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
CDC Vaccines
CDC Booster Shots
HHS Combat COVID
USA.Gov COVID Info

September 2024

..................................................

Photo by Kay Bell
...............................................

Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

Sun	Mon	Tue	Wed	Thu	Fri	Sat
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30