Taxes on Vegas winnings

[LVBOUND]

So if I move to Vegas a bet professionally how do the taxes work. I will explain the amounts I will be betting below.

Half the days of the baseball season i will be betting to win about 1250 per game with a max of five games in a day.

I want to bet mostly at the M casino.

My question is at the end of the year if i make for example 50k profit what should I claim on my taxes?

Will the M casino report all my winnings?
Thanks,
Matt

[LVBOUND]

Can I not get any love
What is up guys

[TonyP]

I know here in Oklahoma in bingo and casino winnings of anything of 1199 and over you have to claim taxes, anything under that is tax free. They get your info at the time you win for the taxes. you do not pay them until you file. you can claim losses up to the amount won on your taxes.

[Justin7]

Vegas doesn't file a tax return or keep withholdings, unless you win a parlay paying 300:1 or higher (at least in sports).

If you net 50k, there are a couple ways to report it. The IRS "Wants" you to report 1.05 million in income, and deduct 1.0 million is losing bets. 50k income, and this screws you due to increasing your AGI.

Most sports bettors (illegally) report just their net win as income.

A safer way is to incorporate, and run the income through your business, and pay yourself a salary (= to net win).

At 50k, you probably aren't likely to get hassled... but the IRS is notorious for taking ridiculous positions on gambling disputes.

[tblues2005]

I know this also Justin is right. Usually that happens on horse racing with those signers or winning a big jackpot on the slots there.

[Grits n' Gravy]

books will request id for all cash transactions over 5k and an id and ss# for all cash transactions that aggregate to over 10k in a 24 hr gaming period. failure to provide the info will get you banned from the casino until you do provide. the casino by law has to fill out a ctr just like a bank for transactions that exceed 10k in cash. best advice i can give you is to buy chips at the books you plan to play at in 2-3k increments and request payouts in chips. redeem them in small amounts(2k at a time for cash) and you should be fine.

[Fishhead]

books will request id for all cash transactions over 5k and an id and ss# for all cash transactions that aggregate to over 10k in a 24 hr gaming period. failure to provide the info will get you banned from the casino until you do provide. the casino by law has to fill out a ctr just like a bank for transactions that exceed 10k in cash. best advice i can give you is to buy chips at the books you plan to play at in 2-3k increments and request payouts in chips. redeem them in small amounts(2k at a time for cash) and you should be fine.

EXACTLY

I was just about to post this.


Keeping a detailed DIARY is a must for any serious gambler...........or even recreational for that matter(this way one can deduct losses up to that big hit or hits if it comes along in the way of a "signer" in a perfectly legal matter.

[theplagy]

what about a check from internet wager, does that need to be reported too?

let say I'm cashing out 1-2k next week from the greek or 5dimes

[Fishhead]

what about a check from internet wager, does that need to be reported too?

let say I'm cashing out 1-2k next week from The Greek or 5dimes

You best be reporting your WINS and LOSSES


LINE 21(TOTAL WINS) and SCHEDULE A(TOTAL LOSSES NOT TO EXCEED LINE 21)

However, as Justin eluded to, if this is a high amount, you will be screwed by the AIG in some aspect.

[theplagy]

You best be reporting your WINS and LOSSES


LINE 21(TOTAL WINS) and SCHEDULE A(TOTAL LOSSES NOT TO EXCEED LINE 21)

However, as Justin eluded to, if this is a high amount, you will be screwed by the AIG in some aspect.

Roughly how much would be taxed?

[Fishhead]

Roughly how much would be taxed?

It depends on what tax bracket you are in............CONSULT the tax tables online at IRS.GOV

[playersonly69]

I know here in Oklahoma in bingo and casino winnings of anything of 1199 and over you have to claim taxes, anything under that is tax free. They get your info at the time you win for the taxes. you do not pay them until you file. you can claim losses up to the amount won on your taxes.

SLOW DOWN there partner! You are going to get some people in serious trouble with statements like yours above!


Anything under 1199 is NOT TAX FREE! Trust me, even a $2.20 winning ticket is NOT TAX FREE! Now do people report those wins??? Probably not.


What you meant to say is that any win under 1199 is not REPORTED to the IRS. But just remember that in an audit, you will be asked how many wins that you had below 1199. The IRS can actually supoena records from the casinos and can accurately judge how much that you won and lost. Well that is assuming that you are using your casino rewards card anyway

[playersonly69]

I get a win/loss report from ALL of the casinos where I played poker tournaments each year. EVERY penny that I put into a slot or every hundred that I put on the blackjack table is listed.


One thing that I will do is buy-in for lets say $1000 at the blackjack table. I am usually playing between $75-150 a hand. But almost immediately, I will pocket a few of the $100 chips and each time I win, I will pocket some of that cash. Then when I do cash out, it wont look like I won at all (if I did win). Also, I rarely do the old color-up trick. That is just another way of the casino knowing exactly how much you won

[Fishhead]

PO69 is spot on



So many people feel that as long as their is no forms to fill out that gambling winnings are not considered taxable income.

Do you think if you won 1,403,000 on the craps table over the course of a year and you bought a 3 fine automobiles and a 400,000 dollar house that that 1,403,000 would not be taxable??????

TECHNICALLY SPEAKING, to prove a point, if you make a PASS LINE bet for $5 on the craps table and profit $5 and do not GAMBLE anything else the remainder of the year, TECHNICALLY IN THE LAW/EYE OF THE IRS, that $5 profit is to be reported.

[LVBOUND]

Wow...great answers. Ifu win 50k and have 50k in losing tickets would it look suspicious if st the end if the year you claimed 15k winnings and presented 15k of losing tickets.

Understand I will have a regular job took claim taxes during the other six months of the year and not baseball season.

Matt

[theplagy]

You best be reporting your WINS and LOSSES


LINE 21(TOTAL WINS) and SCHEDULE A(TOTAL LOSSES NOT TO EXCEED LINE 21)

However, as Justin eluded to, if this is a high amount, you will be screwed by the AIG in some aspect.

let's say this is my #
Total losses $42,000.00
Total wins $45,000.00

[theplagy]

It depends on what tax bracket you are in............CONSULT the tax tables online at IRS.GOV

I'm a college student, so the lowest one

[Fishhead]

let's say this is my #
Total losses $42,000.00
Total wins $45,000.00

If you kept a diary and added up all the wins.......45,000.......and losses........42,000


45,000 goes on LINE 21 OTHER INCOME(GAMBLING)
42,000 goes on SCHEDULE A(LOSSES GAMBLING)

You will then pay FEDERAL TAXES on the 3,000 NET INCOME(WHICH WILL BE AT WHATEVER TAX BRACKET YOU ARE IN)............plus any STATE TAXES.

[Fishhead]

Wow...great answers. Ifu win 50k and have 50k in losing tickets would it look suspicious if st the end if the year you claimed 15k winnings and presented 15k of losing tickets.

Understand I will have a regular job took claim taxes during the other six months of the year and not baseball season.

Matt

Keeping a DETAILED AND ACCURATE diary is much easier then scraping up lost tickets and getting reports from casinos.


A diary is all that is required by the IRS.

[jwdalle]

Question though, if you are using 5dimes,betjamica, or the greek will there be a hassle to files taxes? Legaility of internet gambling and all?


Thanks in advance

-J

You best be reporting your WINS and LOSSES


LINE 21(TOTAL WINS) and SCHEDULE A(TOTAL LOSSES NOT TO EXCEED LINE 21)

However, as Justin eluded to, if this is a high amount, you will be screwed by the AIG in some aspect.

[Fishhead]

Question though, if you are using 5dimes,betjamica, or the greek will there be a hassle to files taxes? Legaility of internet gambling and all?


Thanks in advance

-J

99.99% chance not...........feel lucky?

[huskies12]

Does the irs prey on gamblers for audits? Will they audit me if i don't report my winnings and loses from offshore sportbook accounts?

[jwdalle]

ha! dude that was funny I nearly pissed myself!

In all seriousness though will the MAN hassle us if we file using internet wagers from those books i mentioned?

I got no problem paying taxes on my winnings just dont want to be harassed for doing so.

99.99% chance not...........feel lucky?

[stikymess]

Keeping a DETAILED AND ACCURATE diary is much easier then scraping up lost tickets and getting reports from casinos. A diary is all that is required by the IRS.

FH is right with the diary, the IRS doesn't/or wont deal with tickets. Diary is the way to go. Maybe go with a hello kitty diary?

Maybe pay the money as sit down with a tax attorney in Vegas, I'm sure it will be money well spent and well as deductable. Why wouldn't expenses be covered, computer, the car you lease, meals? I'm mean you are basically working for yourself, if someone opened a home office they deduct items.

[Doug]

I get a win/loss report from ALL of the casinos where I played poker tournaments each year. EVERY penny that I put into a slot or every hundred that I put on the blackjack table is listed.


One thing that I will do is buy-in for lets say $1000 at the blackjack table. I am usually playing between $75-150 a hand. But almost immediately, I will pocket a few of the $100 chips and each time I win, I will pocket some of that cash. Then when I do cash out, it wont look like I won at all (if I did win). Also, I rarely do the old color-up trick. That is just another way of the casino knowing exactly how much you won

They know when you pocket black chips. They also get pretty pissed if you try to walk away without coloring up....but you can do it if you're quick about it.

[Zion21]

FH is right with the diary, the IRS doesn't/or wont deal with tickets. Diary is the way to go. Maybe go with a hello kitty diary?

Maybe pay the money as sit down with a tax attorney in Vegas, I'm sure it will be money well spent and well as deductable. Why wouldn't expenses be covered, computer, the car you lease, meals? I'm mean you are basically working for yourself, if someone opened a home office they deduct items.

That is probably the best route of action. A tax attorney should know exactly what to do.

[theplagy]

Keeping a DETAILED AND ACCURATE diary is much easier then scraping up lost tickets and getting reports from casinos.


A diary is all that is required by the IRS.

Like an excel file that sums up your numbers monthly? or the one with ledgers filled with every single bet you made?

[TonyP]

SLOW DOWN there partner! You are going to get some people in serious trouble with statements like yours above!


Anything under 1199 is NOT TAX FREE! Trust me, even a $2.20 winning ticket is NOT TAX FREE! Now do people report those wins??? Probably not.


What you meant to say is that any win under 1199 is not REPORTED to the IRS. But just remember that in an audit, you will be asked how many wins that you had below 1199. The IRS can actually supoena records from the casinos and can accurately judge how much that you won and lost. Well that is assuming that you are using your casino rewards card anyway

Yes that is what I meant to say

[jwdalle]

Bump!!!!!!!!

[Fishhead]

That is probably the best route of action. A tax attorney should know exactly what to do.

Actually, after consulting with no less than 30 tax attorneys and CPA's over the years, I've found most are very in the dark on how to handle gambling income properly.................sad fact.

If you ask 100, you are apt to get at least 90 different answers.

[LVBOUND]

Actually, after consulting with no less than 30 tax attorneys and CPA's over the years, I've found most are very in the dark on how to handle gambling income properly.................sad fact.

If you ask 100, you are apt to get at least 90 different answers.

Well then ill just hire Fish. I just hope that he gets back to me faster than the Pm i sent him.

[stikymess]

Actually, after consulting with no less than 30 tax attorneys and CPA's over the years, I've found most are very in the dark on how to handle gambling income properly.................sad fact. If you ask 100, you are apt to get at least 90 different answers.

True, weed them out, if he wears a pinkie ring, don't hire him, over 2 1/2 gold chains don't hire him, if he uses more oil in his hair than the oil spill don't hire him.

[Karayilan9]

Thats why I love the UK, tax free gambling

[Marigold HD]

Good info guys

[LVBOUND]

Very good info...... I am not as worried I will just keep a record and since I know I will have at least 50k in losing tickets I will make sure not to shooter more than 60k winnings.

My friend Dad win 65k in the power ball. The irs took 15k of the top. He wanted that 15k back so my friend and his dad hit the dog tracks in Florida and over 3 months collected 65k in losing tickets. He filled his taxes and boom he got his 15k back