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Please note this info was initially posted in 1986, so it may be dated, but this was the the clearest info available on the MA DOR website.
= Directive 86-24: Lottery Winnings; Lottery Tickets =
Facts: Taxpayer Davis, a computer programmer, buys 15 lottery tickets each week choosing ticket numbers according to a system she has developed. During the current taxable year, Davis spent $390 on these tickets. For the same period she picked one lucky number and had lottery winnings of $300. She includes the $300 in income on her U.S. Form 1040 and deducts $300 of the $390 spent on lottery tickets on her U.S. Schedule A.
Issue 1: Must Davis include her lottery winnings in her Massachusetts gross income?
Issue 2: May Davis deduct the cost of her lottery tickets on her Massachusetts return?
Discussion: Federal gross income is all income from whatever source derived, including gains from gambling. I.R.C. § 61. Massachusetts gross income is federal gross income with certain modifications of no relevance here. G.L. c. 62, § 2(a). Thus, Massachusetts taxpayers must include lottery winnings in Massachusetts gross income.
Massachusettsgross income is divided into two classes, Part A income taxed at 10% and Part B income taxed at 5%. Part A income is comprised of interest, dividends, and net capital gain, other than interest and dividends from savings deposits in Massachusetts banks. G.L. c. 62, § 2(b)(1). Part B income is all other income subject to taxation. G.L. c. 62, § 2(b)(2). Consequently, gambling gains are Part B income, taxed at 5%.
More at http://www.mass.gov/?pageID=dorterminal&L=7&L0=Home&L1=Businesses&L2=Help+%26+Resources&L3=Legal+Library&L4=Directives&L5=Directives+-+By+Decade&L6=(1980-1989)+Directives&sid=Ador&b=terminalcontent&f=dor_rul_reg_dir_dir_86_24&csid=Ador
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What mass city or town has claimed the most lottery winners?
Methuen, MA Mobil Station
How much tax is collected from 1000.00 winning lottery in MA?
MA state tax will be witheld on all winnings from $600-$4999. Ma state tax + 25% federal is withheld on 5k and above.
LUNENBURG MA ?
WILL I HIT THE LOTTERY TODAY?
How much tax on 100000 for life ma lottery game?
If you won $100,000 in the lottery, the government would take about 1/4 of it, leaving you with $75,000 in the end. It is still a lot of money, but you won it, so they shouldn't be allowed to take $25,000 from you.
What is the auto sales tax in ma?
Sales Tax in Ma. 6.25%
Do you pay sales tax on a car in MA if it was a gift?
There is no tax on a car given as a gift in MA.
Can one play in the MA lottery when they live outside Massachusetts?
The Massachusetts Lottery can be played by non-residents of MA if they are 18 years old or over. Tickets can be purchased from any lottery sates agent whilst in MA or by calling 1-800-222-TKTS when not in the state. It is not possible to purchase season tickets over the phone or by mail from outside the state.
Where do you send the 1099 Misc Copy 1 for MA state tax department?
If you have to send the copy 1 of the 1099-MISC to MA. it have to be to the Ma. state tax department.
When is no tax on shopping 2011 in ma?
There is no where that dont add tax they add tax on everything
What is the sales tax in MA?
6.25%.
Is there sales tax on clothes in MA?
no
How to beat the national lotteries?
what numbers come out most in the ma. powerball lottery game
