Paying Taxes On Your Winnings

[Mr KLC]

I was just looking to see from some of the players how they organize themselves when they file a tax return on their winnings. I want to try, and be as organized as possible, so if I get an audit, I'm prepared. Also, when you file taxes on income, do you count the income you received over the year, or do you count the money you received, plus what's sitting in you offshore account. Any info would be great!

Thanks,
KLC

[Mr KLC]

I guess either no one reports their winnings to the IRS, or nobody gets any winnings.

[jjgold]

Why would you report winnings from unregulated companies ?

[Fishhead]

Why would you report winnings from unregulated companies ?

Because it's illegal if one doesn't........that's why.

[Mr KLC]

Why would you report winnings from unregulated companies ?

All it takes is one audit, and a couple of mistakes for all hell to break loose. I've always believed to keep the horses in the barn, instead of letting them run out, and having to round them up later. Oh yeah, plus my wife told me to.

[do5000]

are you living in the USA?

[Mr KLC]

are you living in the USA?

Yep.

[txmagnolia2]

My winnings play for vacations so no reporting for me.

[BrentCrude]

If you did have a brain fart and paid taxes on your winnings even though most years you lose money gambling and couldn't report that because offshore gambling losses weren't a legitimate deduction,where would your tax dollars go?Rat hole?Sh&t hole?I don't believe in that collectivist talk like us,we,and ours when it comes to much of any part of being a USA citizen but if I were to include myself in saying we,I would say WE as a country are in a sh^t load of deep do do.

[Fishhead]

If you did have a brain fart and paid taxes on your winnings even though most years you lose money gambling and couldn't report that because offshore gambling losses weren't a legitimate deduction,where would your tax dollars go?Rat hole?Sh&t hole?I don't believe in that collectivist talk like us,we,and ours when it comes to much of any part of being a USA citizen but if I were to include myself in saying we,I would say we as a country WE are in a sh^t load of deep do do.

Yes, the USA will be toast within a few years in all liklihood.

Why I'm not moving out of this country is beyond me.

[WeinketoWarrick]

I have no intentions of claiming anything.

If I get audited I'll just say anything that's been put in my account is offset by lotto ticket and horse track losses. Hard enough to win with the juice, why pay half of what you might get lucky enough to win to the federal gubmint?

[Cabo]

I think the IRS would like for you to report your gross winnings as income, then take your gross losses as a deduction.

[southpaw74]

Anyone paying taxes on gambling is crazy. They steal enough in "traditional" taxes.

[Mr KLC]

I think the IRS would like for you to report your gross winnings as income, then take your gross losses as a deduction.

I've read that in a couple of articles. From what I understand, its recommended to keep your daily records, and even if the money is still in your book, you have to count it as earned income.

[jjgold]

They are not usa companies therefore you should never report anything

[unusialsusp5]

i can't believe anyone would worry about paying taxes on gambling winnings through an offshore book. no one cares and no one could possibly find out. why do it? everyone loses anyway so its moot. the govt. is as crooked as the day is long anyway. you will never be audited for this. it is unproveable and only a fool would actually declare winnings other than horse race winnings which a form was handed to you for a 600.00 win or more.

[Fishhead]

i can't believe anyone would worry about paying taxes on gambling winnings through an offshore book. no one cares and no one could possibly find out. why do it? everyone loses anyway so its moot. the govt. is as crooked as the day is long anyway. you will never be audited for this. it is unproveable and only a fool would actually declare winnings other than horse race winnings which a form was handed to you for a 600.00 win or more.

So JOHN DOUGH cashes over $100,000 in checks at his bank and he refuses to pay taxes.............good luck to Mr. Dough.


Let me know how that works out for him.

[FuzzyDunlop]

i can't believe anyone would worry about paying taxes on gambling winnings through an offshore book. no one cares and no one could possibly find out. why do it? everyone loses anyway so its moot. the govt. is as crooked as the day is long anyway. you will never be audited for this. it is unproveable and only a fool would actually declare winnings other than horse race winnings which a form was handed to you for a 600.00 win or more.

I've been playing online poker since 2002, betting sports online since 2009 and this opinion could not be more incorrect.

[Fishhead]

I've been playing online poker since 2002, betting sports online since 2009 and this opinion could not be more incorrect.

[pico]

you're already breaking the law. why bother to pay taxes

[falconticket]

you're already breaking the law. why bother to pay taxes

Which law?

[nyed1010]

, there's only like 2-3 people in player's talk that even have to worry about this. The rest of you degens need to be worrying less about taxes and caring more about how you're going to pay off your gambling debts.

[Fishhead]

you're already breaking the law. why bother to pay taxes

[PingPong]

lol no one here has "winnings"

[Thunder Gulch]

I've had some horse racing scores that I had to report, but if you pick up enough dead tickets to offset them, you can write it off.

[Fishhead]

I've had some horse racing scores that I had to report, but if you pick up enough dead tickets to offset them, you can write it off.

Keep a diary, much easier than picking tickets off the floor.

[Yi]

Is there a certain threshold where below a certain net amount it's okay to not pay?

Also anyone have a nice link to a thread on sbr that gives advice on paying tax for online sports gambling?

[FuzzyDunlop]

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

[cant call it]

Its illegal to gamble but you want to report it for tax purposes.
Bend over and lube up buddy.

[Mr KLC]

http://www.gambling-law-us.com/Artic...mbling-tax.htm

Have you been going by these rules since you started doing on line poker, Fuzzy? If so, have you done this through a tax professional? Have you encountered any audits? Just curious. I normally do my taxes through Turbotax, but I think I might need to do them in person with H&R Block or someone else if I'm fortunate to have the problem of filing gambling income next year.

[unusialsusp5]

fuzzy dunlop must feel like the countries biggest fool. voluntarily paying taxes on gambling winnings which are untraceable. there is no way it can be found out unless you tell them by actually reporting it on your income. total idiot.

[Fishhead]

fuzzy dunlop must feel like the countries biggest fool. voluntarily paying taxes on gambling winnings which are untraceable. there is no way it can be found out unless you tell them by actually reporting it on your income. total idiot.

You are 110% wrong........maybe 149%

[sharpcat]

fuzzy dunlop must feel like the countries biggest fool. voluntarily paying taxes on gambling winnings which are untraceable. there is no way it can be found out unless you tell them by actually reporting it on your income. total idiot.

This is a very uneducated argument.

The IRS can audit anyone at anytime for any reason dating back 3 years, if they were to audit ones bank account and see $50,000 plus of unanswered for income you will not only owe what you should have paid but also interest , late fees, and penalties with possible criminal prosecution.

What the OP is referring to is players who make the equivalent of a salary in winnings, if you are the type of player who considers a big winning year $10,000 I would not be very concerned with this issue.

[Cantstopmenow]

If you are betting offshore... keep your money offshore

[Fishhead]

This is a very uneducated argument.

The IRS can audit anyone at anytime for any reason dating back 3 years, if they were to audit ones bank account and see $50,000 plus of unanswered for income you will not only owe what you should have paid but also interest , late fees, and penalties with possible criminal prosecution.

What the OP is referring to is players who make the equivalent of a salary in winnings, if you are the type of player who considers a big winning year $10,000 I would not be very concerned with this issue.