As the dreaded date of April 15 approaches (of course many file before), sports bettors should be knowledgeable of reporting rules regarding gambling gains or losses.
All forms of revenue from gambling are taxable by the Internal Revenue Service.
The threshold of what you have to report to Uncle Sam depends on what type of gaming you have earned money in.
At the poker table, a tournament payout of $5,000 or more is going to draw the attention of the IRS. In the horse racing and lottery realm of gambling, earnings of $600 or more must be reported if they are 300 times the amount of the original bet.
For slot machines and bingo, casinos are required to report any single winnings that reach $1,200 or more. If your game is keno, you will need to report any winnings over $1,500.
Income from gambling winnings can be reported on your 1040 form under “other income”.
If you are looking to write-off your gambling losses for the year, you can deduct only up to the amount of your winnings and could be asked by the IRS for detailed descriptions and documentation of your losses.
Gambling losses must be itemized and for many people those losses don’t exceed that of the standard deduction.
Of course in this day and age, many gamblers make wagers via the internet to offshore accounts that do not have to supply information to the IRS.
Withdrawing money from these sportsbooks and casinos is where you have to be careful.
If you make a bank deposit of anything over $10,000, the institution is required by law to take down a slew of information from you and the IRS will likely want to know where the money came from.
All forms of revenue from gambling are taxable by the Internal Revenue Service.
The threshold of what you have to report to Uncle Sam depends on what type of gaming you have earned money in.
At the poker table, a tournament payout of $5,000 or more is going to draw the attention of the IRS. In the horse racing and lottery realm of gambling, earnings of $600 or more must be reported if they are 300 times the amount of the original bet.
For slot machines and bingo, casinos are required to report any single winnings that reach $1,200 or more. If your game is keno, you will need to report any winnings over $1,500.
Income from gambling winnings can be reported on your 1040 form under “other income”.
If you are looking to write-off your gambling losses for the year, you can deduct only up to the amount of your winnings and could be asked by the IRS for detailed descriptions and documentation of your losses.
Gambling losses must be itemized and for many people those losses don’t exceed that of the standard deduction.
Of course in this day and age, many gamblers make wagers via the internet to offshore accounts that do not have to supply information to the IRS.
Withdrawing money from these sportsbooks and casinos is where you have to be careful.
If you make a bank deposit of anything over $10,000, the institution is required by law to take down a slew of information from you and the IRS will likely want to know where the money came from.
yep I will be at 25 in no time the grand prize is 100k will use that for a new coy pond
