How do taxes on lotteries, casinos, sports betting, and other types of state-sanctioned gambling work? Q.How do taxes on lotteries, casinos, sports betting, and other types of state-sanctioned gambling work? A.Various forms of state-sanctioned gambling, including lotteries, casinos, parimutuel wagering (e.g., horse racing), sports betting, and video games (e.g., video poker), are taxed. State and local governments collected a combined $35 billion from state-sanctioned gambling in 2021. Read more about How do taxes on lotteries, casinos, sports betting, and other types of state-sanctioned gambling work?
How do state and local general sales and gross receipts taxes work? Q.How do state and local general sales and gross receipts taxes work? A.General sales taxes are taxes on goods and services purchased by consumers, and the tax is a calculated as a percentage of the listed retail cost and added to the final purchase price paid by the consumer. State and local governments collected a combined $477 billion in revenue from general sales taxes and gross receipts taxes in 2021. Read more about How do state and local general sales and gross receipts taxes work?
How do state earned income tax credits work? Q.How do state earned income tax credits work? A.The federal earned income tax credit (EITC) provides a refundable credit to taxpayers based on their income and family circumstances (such as marital status and number of children). In 2023, 31 states and the District of Columbia additionally offer a state EITC. Most state credits are calculated as a percentage of the federal credit. Read more about How do state earned income tax credits work?