Declaring Online Winnings in Taxes

buztah · 02-11-08, 11:25 AM

Move to Canada and see a US tax lawyer about your recent wins...

fathead · 02-11-08, 12:18 PM

Declare 2007 gross winnings on 1040 "other income". Declare 2007 gross losses (up to the amount of gross winnings) on Schedule A "gambling losses". The net of the two figures is what you have to pay taxes on.

If you had losing year, the two figures will be identical and will zero out. Even if you have a losing year, you still have to declare both figures, otherwise you run the risk of being charged with "filing a false return".

Make sure to keep a detailed diary of all wins and losses to back up the figures on your return, in case of audit.

The IRS does not care where you get your income as long as you pay your taxes. Also they are prohibited by law from reporting you to any law enforcement based on tax return information.

Hope this helps.

fathead · 02-11-08, 12:24 PM

Of course Super Bowl money will be on the 2008 return.

BrentCrude · 02-11-08, 12:41 PM

You said online which means don't pay them!!!!!!!!!!!!

When you want to go on a diet,you put a picture of Hillary on your fridge to spoil your appetite.When you don't want to look for an easy gal to do the nasty with,put a picture of Hillary in your bedroom to ruin your sex drive.When you make allot of money where no one can trace it as income,you put a picture of Hillary on your safe and you don't want to pay taxes on her blowing it on the nanny state social programs.

If you win money at a Vegas sportsbook,just gather a ton of old betting tickets that prove that you lose allot more than you make.

If you win the money online betting,don't be a fool and pay it.Offshore sportsbooks are supposed to be illegal so are the IRS and politicians supposed to believe the criminals running the sportsbooks that you won allot of money from them?That would be like them believing that Bin Laden gifted you 20K that you have to pay taxes on.

It's almost like this whole illegal allien situation where people like Obama want them to get drivers licenses,in state tuition,social services.The illegals are breaking the law by being here and aknowleging them where you give them government aid shouldn't even be a possibility.Someone should confiscate the wages of the politicians who waste time on the tax payer dollar finding ways to help illegals.Why not just take time and money constructing government programs for martians too?

louisvillekid · 02-11-08, 12:45 PM

i'm by far a professional gambler, but for the handful of people that are and actually claim themselves as one on a tax return, i've always wondered if you only have to pay your federal tax on your winnings. cause i always thought if you were self employed you had to pay SSI and medicare taxes also. like i know my employer takes out taxes for those, and has to match what i pay, so if you were claiming to be a self employed professional gambler it seems to me after you pay all those taxes you would be paying over 60% of your winnings back to the government.

louisvillekid · 02-11-08, 01:02 PM

Originally posted by BrentCrude

If you win money at a Vegas sportsbook,just gather a ton of old betting tickets that prove that you lose allot more than you make.

i thought about doing that before, grabbing tote tickets when i'm at the track, but since i'm lucky if i come out 1-2 grand ahead on the year sports betting, i don't worry about it. Before they closed the Spectrum or Trackside or whatever they called it, it changed names a couple times. The Spectrum was where you went when Churchill was not running, now eveything is done at the Downs. The Spectrum used to have a room in the back you could pay a whole whopping 2 bucks extra to enter, it had a big fancy bar, rows of individual tables going up, had servers take your order for drinks and food, a wall of 10-12 foot screens and individual screens at your booth or table. me and my friends loved it, you could go in there and not be hassled by all the low-life's out on the main floor, that are huddled around 1 big screen or the hanging 27' TV's, and yelling and cussing and the stench from the cigars and cigarettes. in the fancy room, i don't remember what they called it, i think it was "The Whirl-a-way room", anyway, there was always high rollers in there, i constantly seen tote tickets on the ground for 100's of dollars. I miss that place, it sure beats having us all in one place at the Downs now. You get approached for change or a couple dollars all the time.

andrewaxia · 02-11-08, 01:11 PM

<<<If you win the money online betting,don't be a fool and pay it.Offshore sportsbooks are supposed to be illegal so are the IRS and politicians supposed to believe the criminals running the sportsbooks that you won allot of money from them?That would be like them believing that Bin Laden gifted you 20K that you have to pay taxes on.>>>

But my question is, can the government track down that I'm cashing checks of 2,500 twice a month?

buztah · 02-11-08, 01:18 PM

Why risk jail time or fines? Go see a tax lawyer.

louisvillekid · 02-11-08, 11:44 PM

bump: any thoughts or info from any experts?

Cyclone · 02-11-08, 11:57 PM

The statement that the IRS treats cashier's checks as cash isn't even close to being true. Any income you earn, in whatever form, is taxable.

By depositing checks into a bank account, you are in for trouble IF you are audited. The chances of being picked for a random audit are low, but it can happen.

ipickwinners · 02-12-08, 12:01 AM

as long as u dont deposit more than $10,000 in any given time, and no more than like $50,000 in one week (unless u earn this kind of income legally) you are fine, dont worry about it

Cyclone · 02-12-08, 12:13 AM

I really don't feel like going into it, but don't pay attention to that last post. The advice isn't even close to being accurate.

ipickwinners · 02-12-08, 12:16 AM

yes it is

Cyclone · 02-12-08, 12:46 AM

I apologize. I just checked the IRS website, and any deposits of less than $50,000 to your bank account are completely tax free. My mistake.

ipickwinners · 02-12-08, 12:51 AM

in one week, u can deposit 50 grand.... u can get checks from family members and have them write u a check for 10 grand or less and claim it as a gift, they are able to do this once a year

Quebb Diesel · 02-12-08, 01:10 AM

IRS goes for the big fishies