Tax on out of state gambling winnings

1 : In 2009 I won 10,000 at Twin River casino in Rhode Island. I was and still am a Massachusetts resident and I had more than enough losses to offset the winnings and thus paid no tax to RI. 

2 : Now Mass is trying to collect tax on the 10k. Do I have to pay them?

Answer :

1 : To deduct your gambling losses on your federal return, you must itemize your deductions on Sch You also need to report your winnings , 10K, on line 21 of 1040, Other Income ; so UNLESS you itemize your deductions on Sch A, you can’t deduct your losses.NOTE; Claim your gambling losses as a miscellaneous tax deduction on Sch A of Form 1040. It is important to keep an accurate diary or similar record of your gambling winnings and gambling losses. To deduct your gambling losses on your tax return, you must be able to provide receipts, tickets, statements or other records that show the amount of both your gambling winnings and gambling losses. You cannot deduct or carry forward a net gambling loss on your tax return; However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return.

2 : Since gambling losses are only deductible on the federal return, as an itemized deduction, and itemized deductions don't transfer to the MA return, there is no MA deduction. Cash winnings...Read more...