Taxes on my winnings?

[chillaxation]

Posted this in the Politics section, but upon further review, this is the better subforum for my thread.

Hey guys. I'm pretty new to this betting this. I just started about a month ago. Well I'm up a little over $11,000 and started thinking about my taxes for next year. Now I know the OFFICIAL position is "report all winnings." I was wondering if you guys always report all winnings (I'm in the US by the way), and if not, how would they really know if I get my winnings by check and cash them at a check cashing place and just deposit cash in my bank account? Also, my book is an offshore one.[/color]

[dodger33]

if you get audited anything that goes into your bank account will be consider income unless you can prove otherwise.

[mcbaseball10]

If you made 10k selling marijuana would you claim it on your taxes too? Same difference. Find a way to hide your winnings.

[Boner_18]

Safest way to go is declare and offset with losses. If it starts to get late in the year and you still have gains find ways to generate losses. Collect all of your losing scratchers, spend a day at the track collecting all your losing tickets... there are plenty of ways.

[mcbaseball10]

US player using offshore book..come on guys, think about this.

[chillaxation]

So my question is: Do you guys claim your winnings? I only make about $20,000 a year so an additional $11,500 in my bank account might raise some questions.

[Boner_18]

Of course we all do. It's against the law not to.

[mcbaseball10]

Of course we all do. It's against the law not to.

Boner, are you being serious with us or not?

If he is audited, it would lead the auditors to his illegal gambling. Again, Mikey B. does not claim his hashish sales on the corner of 5th and Main.

Cash the checks, do not leave a paper trail.

[unluckysob]

check cashing place i use will not cash an offshore check.

[RageWizard]

My question is why do you want to repatriate the money. Do you think that the book will run off? If so, I would open an account in the carribean, or even Canada. to make it all legal get yourself an incorporated name and use that name on your bank account. Corporations don't have to pay taxes until they bring the money back.

[Boner_18]

Boner, are you being serious with us or not?

If he is audited, it would lead the auditors to his illegal gambling. Again, Mikey B. does not claim his hashish sales on the corner of 5th and Main.

Cash the checks, do not leave a paper trail.

No I am not. But he is asking whether or not we all engage in tax fraud or not, I don't think he will get a straight answer.

I have never declared gambling winnings but I have never won in a year when I had had enough earnings to file (i've been a student for so long etc). If I had a big win I would probably declare it and generate losses to deduct against it, wouldn't be to hard.

[teaserpleaser]

If you made 10k selling marijuana would you claim it on your taxes too? Same difference. Find a way to hide your winnings.

i know a grower who got busted walking his 20k harvest payment got busted by the bank hell of a grower but dumb as a brick.

[KingKolzig]

So my question is: Do you guys claim your winnings? I only make about $20,000 a year so an additional $11,500 in my bank account might raise some questions.

wow 20k a year and you won 11k. you must not have been betting over $50 a game. Thats quite the run, do you you know your win-loss record to get you to 11k?

[Dunder]

There are numerous threads on this subject if you search in the Sportsbook and Industry forum.

I am not American so am not affected but the consensus amongst serous US players is the you should declare this income. The law on gambling is hazy but the laws on tax fraud are not.

[Mac4Lyfe]

There are numerous threads on this subject if you search in the Sportsbook and Industry forum.

I am not American so am not affected but the consensus amongst serous US players is the you should declare this income. The law on gambling is hazy but the laws on tax fraud are not.

While I agree with your post, I don't consider $11k serious money, especially when he's only making $20k a year. He could declare the income and still not have to pay taxes based on his total worth. But why raise any flags.

It's illegal to bet offshore online for US citizens, so why would you report an illegal activity??? Of course the government isn't going after said individuals but why put yourself in a position to be the first?

Hopefully when you set up your account you didn't trace anything back to your SSN... If so, transfer your winnings to someone else that isn't traceable to a SSN. Or open up a bank account in the country of the book. Take a trip to Aruba or Jamaica, etc. It's tough opening an account in the Bahamas so check before you go.

People get in trouble with the law when they use wire or large amounts of money into an account, mainly because the US tries to track drug money. I wouldn't accept Western Union anything over a couple of thousand at a time. Same for checks. Withdraw a little at a time or get an offshore bank account with an ATM for withdrawals.

[Domer]

blind leading the blind here

yes, you should report. no, they will not prosecute you for gambling online.

the by-the-book way of reporting gambling income is to report the wins as gambling income on line 21 of your 1040 & report the losses as deductions (you must itemize, and therefore lose the standard deduction). you can't net the wins and the losses. ignorance isn't a defense.

gl man

[MartinBlank]

Every single player on here reports their winnings accurately.

To do otherwise would be illegal, and immoral.

[jgray]

Remember, there are lots of legal forms of gambling in the states that can provide a justification for gambling winnings.

[MendozaLine]

Tell your book you're flying over there and you want cash

[INVEGA MAN]

every year

[mcbaseball10]

blind leading the blind here yes, you should report. no, they will not prosecute you for gambling online. the by-the-book way of reporting gambling income is to report the wins as gambling income on line 21 of your 1040 & report the losses as deductions (you must itemize, and therefore lose the standard deduction). you can't net the wins and the losses. ignorance isn't a defense. gl man

Alright, guess I should have done some research before spouting off at the mouth. My apologies. Here is an article addressing the issue LEGALLY speaking.

http://www.gambling-law-us.com/Articles-Notes/online-gambling-tax.htm

[Fishhead]

while i agree with your post, i don't consider $11k serious money, especially when he's only making $20k a year. He could declare the income and still not have to pay taxes based on his total worth. But why raise any flags.

it's illegal to bet offshore online for us citizens, so why would you report an illegal activity??? Of course the government isn't going after said individuals but why put yourself in a position to be the first?

Hopefully when you set up your account you didn't trace anything back to your ssn... If so, transfer your winnings to someone else that isn't traceable to a ssn. Or open up a bank account in the country of the book. Take a trip to aruba or jamaica, etc. It's tough opening an account in the bahamas so check before you go.

People get in trouble with the law when they use wire or large amounts of money into an account, mainly because the us tries to track drug money. I wouldn't accept western union anything over a couple of thousand at a time. Same for checks. Withdraw a little at a time or get an offshore bank account with an atm for withdrawals.

no it is not!!

[MartinBlank]

no it is not!!

Fish is right here and wrong.

The Fed Wire Act of 2002 and the UIGEA do not specific address the legality of online gambling as an individuall act but rather the electronic transfer of information.

Where it does get illegal is when you consider individual states.

Some individual states in the USA prohibit any form of gambling, although it becomes grey when the question is if the action is online, is it really being conducted in that state?

[chillaxation]

wow 20k a year and you won 11k. you must not have been betting over $50 a game. Thats quite the run, do you you know your win-loss record to get you to 11k?

20K a year is my regular job income. I've won a little over 11K in the past month with parlays on college and pro basketball. Win loss record is around 12-4 or something like that.

[Fishhead]

Fish is right here and wrong.

The Fed Wire Act of 2002 and the UIGEA do not specific address the legality of online gambling as an individuall act but rather the electronic transfer of information.

Where it does get illegal is when you consider individual states.

Some individual states in the USA prohibit any form of gambling, although it becomes grey when the question is if the action is online, is it really being conducted in that state?

[Mac4Lyfe]

Fish is right here and wrong.

The Fed Wire Act of 2002 and the UIGEA do not specific address the legality of online gambling as an individuall act but rather the electronic transfer of information.

Where it does get illegal is when you consider individual states.

Some individual states in the USA prohibit any form of gambling, although it becomes grey when the question is if the action is online, is it really being conducted in that state?

What individual state allows online gambling outside of their state???

Bottom line is that this is very much a gray area. Question then becomes - Do you want a paper trail in a gray area or not

[blueghost]

move to canada no taxes on winnings any winnings lotto or otherwise [for now anyways]

[boxcar]

Fish is right here and wrong.

The Fed Wire Act of 2002 and the UIGEA do not specific address the legality of online gambling as an individuall act but rather the electronic transfer of information.

Where it does get illegal is when you consider individual states.

Some individual states in the USA prohibit any form of gambling, although it becomes grey when the question is if the action is online, is it really being conducted in that state?

Yes, but even more important, can a state outlaw activity that crosses state lines? Such a law may violate the dormant Commerce Clause of the US Constitution.

[boxcar]

What individual state allows online gambling outside of their state???

Bottom line is that this is very much a gray area. Question then becomes - Do you want a paper trail in a gray area or not

Internet gambling = grey area
Tax fraud = black and white, will certainly land you in prison

Any advice that tells you to risk being caught for tax fraud to avoid revealing gambling activity is bad bad bad.

[teaserpleaser]

If you made 10k selling marijuana would you claim it on your taxes too?.

yes i had to