I am fairly new to betting offshore. I have been "lucky" the past two months, I have received check/paper payouts the past two months of low 4 figures for each check. I actually want to cash out again this month of another low 4 figure amount. My question is, with 3, 4 figure payouts in the past 3 months does anyone have advice on what I should do about Uncle Sam's share. If I do pay the 30% do I report it as sports betting, or do I just not report it? I am worried that cashing 3 months in a row throw up a red flag. Please give me advice.
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No idea
I have never bet real money
SBR pts all I betComment -
anyone that tells you to not pay taxes is wrong.
if you've cashed out 3 months in a row for low 4-figures, report it and pay your taxes.Comment -
You need a federal tax id #. Just close your eyes and pay. Then you will be in the clear.Comment -
Thanks for the advice.
BrickJames- I do have a federal tax id # so I will go that route. Thanks again for the advice.
Is it 30% I should pay??Comment -
the income gets added to your income on your annual 1040 tax return and state tax return. losses get reported up to winnings on schedule a of the federal return (if you itemize).
you don't just "pay in" a flat amount.
i really really really hope you aren't doing your own taxes if you have to ask a simple question like this.Comment -
In simple response, this is a gray area. You are SUPPOSED to pay, but you won't get audited for that either depending on what your Job is and what your income report is. If you have an average income it won't matter, you're not going to get audited for it. IRS DOES NOT look at every tax return. They put it in a machine and it tells you what your job field average income is and deduction is and if there's any 1099 and other reports that were filed and if you filed it and if it matches. If it does, it passes, if it doesn't then you get audited. Best of luck.Comment -
good answer
the people blindly saying "you should pay your taxes" are quite naive. in wisconsin the law doesn't allow for losses to offset winnings, and every bet is a taxable event. so if you made 1000 $100 winning bets and 1000 $100 losing bets in a year (ignoring the vig), wisconsin would tax you on $100,000 and you would owe $7750 in Wisconsin taxes even if you itemized the federal losses.
so no gambler in his right mind should just "pay the taxes" the way the irs and state want you to.Comment -
IMO this should be considered a business. Highs and lows. What you net at the end of the year etc. They just want their chunk of the pie. If you have a net loss in your "business" how can you pay taxes on it? Makes no sense.
To the OP... Do what you feel is right.Comment -
yes but irs and pretty much every state have disallowed gambling winnings/losses to be treated as a business UNLESS it is your primary activity/primary source of income.
same thing if you race cars or horses, yes it's a "business" but there is some entertainment value so irs would disallow the losses 99% of the time. at least in those cases though you wouldn't have to pick up the income like gambling here in wisconsin.
a lot of things governments do make no sense
another dumb rule in wisconsin is they tax all of your income at 7.75% and then if you have donations or mortgage interest they give you a 5% credit instead of a deduction. if you work in chicago they tax those earnings in wisconsin at 7.75% and then give you a 3% credit, making you pay tax in BOTH STATES!!!Comment
