what kind of dummy pays tax on sportsbook winnings?

[milwaukee mike]

just reading another thread here where coachv made 50k and said "i pay my taxes" got me thinking:

what is to be gained from paying taxes?

*you're just throwing 15-20k away to the federal/state government, who spends it all on the 2 dumbest things to spend money on (war and interest). and if you lose 50k in the following year, tough shit you can't claim a net loss on gambling. so over a 2 year period you are breaking even on gambling and still down 15-20k in taxes.
*you're giving them a huge red flag and asking for an audit.
*you're asking for a letter requesting all the fbar reports you never filed and saying you are subject to criminal charges for not reporting your overseas gambling money.

[JohnGalt2341]

You make some good points but let me ask you this... Lets say you made 50K this year from gambling and decided it quit your real job. The next near you make 75K and it is your only source of income. You don't pay any taxes at all that year. Wouldn't you then be giving the IRS a huge red flag and asking for an audit?

[milkncereal]

If im making 50k this year, and the next year 75k...im living somewhere where the govt. doesnt give a f about me making my money overseas.

But, I guess your still in trouble with us as living abroad as a us citizen still need to pay on your income, but doubt youd get nabbed when visiting friends and family on tax evasion on a very small amount.

Also couldnt you just live in vegas and pay everything cash and if you have a strong play. just play that play at 999 dollars at like 10 different books.

[milwaukee mike]

If im making 50k this year, and the next year 75k...im living somewhere where the govt. doesnt give a f about me making my money overseas.

But, I guess your still in trouble with us as living abroad as a us citizen still need to pay on your income, but doubt youd get nabbed when visiting friends and family on tax evasion on a very small amount.

Also couldnt you just live in vegas and pay everything cash and if you have a strong play. just play that play at 999 dollars at like 10 different books.

if you live abroad as a us citizen you are exempt from us income taxes on the first 90,000 or so of income.

[milwaukee mike]

You make some good points but let me ask you this... Lets say you made 50K this year from gambling and decided it quit your real job. The next near you make 75K and it is your only source of income. You don't pay any taxes at all that year. Wouldn't you then be giving the IRS a huge red flag and asking for an audit?

in that case why would you show irs a bank statement that had big gambling deposits on it?

there wouldn't be any red flag because there would be no w-2/1099/etc for irs to look at. you wouldn't be the only person in the country without a job right now...

[ebbearsfb1]

Keep your withdraw amounts low...

[milwaukee mike]

You make some good points but let me ask you this... Lets say you made 50K this year from gambling and decided it quit your real job. The next near you make 75K and it is your only source of income. You don't pay any taxes at all that year. Wouldn't you then be giving the IRS a huge red flag and asking for an audit?

nobody here makes money 2 weeks in a row, let alone 2 years in a row

[k13]

Someone not sharp or lying.

[wantitall4moi]

Social Security is what gets you, you might get away without paying state or federal income tax but that social security is what gets you. I get a letter every year from them showing what I paid in over the years. It basically goes back to whenever you filed your first return or had a job that required you to give a SS number. I didnt pay anything in one year according to them and they wanted to know why. Doesnt matter I have money going in all they way back to 1984 they want to know why in XXXX they didnt receive any money from me. I told them I was in prison for that whole year and that was the end of it. But you can be damnd sure they made sure I was where I said I was. Hell I was in for almost 3 years but was out at the beginning of one year and the end of the other and I still paid in those years.

So you might be able to slide on the income tax, but you get jammed up on the Social Security, which is the biggest scam because I am 43 now and if I wait until I am 65 to try and withdraw I dont think theyll be anything in there despite me having put an unreal amount of money into that bullshit.

[JohnGalt2341]

nobody here makes money 2 weeks in a row, let alone 2 years in a row

My personal record is 13 days. I didn't actually win 13 days in a row... I just managed to turn a profit in a 13 day span.

[Frogger]

I personally would not post saying I would ever intend to defraud the IRS.

[LordVodka]

What is the tax percent on income earned through gambling?

[Monitor-Tan]

What is the tax percent on income earned through gambling?

That depends on ur overal income and which tax bracket you are in. Earnings through gambling is considered ordinary income, which is as high as it really comes..

It's so facking retarded that it doesn't count as investment which would make it MUCH lower..

So facked up it is..

[AlwaysDrawing]

What is the tax percent on income earned through gambling?

same as any ordinary income.

[LordVodka]

Really, cause I remember one year I actually won and they took away around 30% and I don't get taxed 30% on my regular taxes.

[Hareeba!]

What is the tax percent on income earned through gambling?

wouldn't that depend on how much other income you have?
i.e. it's a progressive tax scale isn't it?

[Monitor-Tan]

Really, cause I remember one year I actually won and they took away around 30% and I don't get taxed 30% on my regular taxes.

You are subject to self employment tax on that gambling which is like another 14% give or take

[theblueprint]

It is painfully clear nobody here knows what they are talking about as far as this is concerned. I don't even know where to begin

[LordVodka]

You are subject to self employment tax on that gambling which is like another 14% give or take

So in total they would take out 44%?

[5mike5]

they could care less unless ur making 100s of thousands

thats why nobody ive ever heard of has heard from iRS about offshore winnings

do what u personally think u need to, but they dont bother with it unless its crazy money

[JohnGalt2341]

they could care less unless ur making 100s of thousands

So if a person made 25K in a year and it's their only source of income the IRS wouldn't care?

[durito]

People that actually make money doing this every year pay their taxes. Many of them live outside the usa as well. There are still owed taxes.

Benefits include avoiding fines, interest, and jail time.

[MonkeyF0cker]

just reading another thread here where coachv made 50k and said "i pay my taxes" got me thinking:

what is to be gained from paying taxes?

*you're just throwing 15-20k away to the federal/state government, who spends it all on the 2 dumbest things to spend money on (war and interest). and if you lose 50k in the following year, tough shit you can't claim a net loss on gambling. so over a 2 year period you are breaking even on gambling and still down 15-20k in taxes.
*you're giving them a huge red flag and asking for an audit.
*you're asking for a letter requesting all the fbar reports you never filed and saying you are subject to criminal charges for not reporting your overseas gambling money.

Good point. Tax evasion is a good way to avoid an audit.

[5mike5]

People that actually make money doing this every year pay their taxes. Many of them live outside the usa as well. There are still owed taxes. Benefits include avoiding fines, interest, and jail time.

....

[Justin7]

If you don't declare income, but you keep getting 250k in cash a year, you are going to have problems.

If you incorporate, and write off every single expense, you pay less taxes than most working Americans (from a % rate), and can spend the money without sweating tax fraud.

[NHL Pro Capper]

Do what smart people do, create a fake business. legally register it, set up bank buss account, deposit 20-25% of your winnings, and write off everything. Say your a web designer, programmer, whatever

You guys cant be this stupid, to pay taxes?

[5mike5]

Do what smart people do, create a fake business. legally register it, set up bank buss account, deposit 20-25% of your winnings, and write off everything. Say your a web designer, programmer, whatever You guys cant be this stupid, to pay taxes?

[LordVodka]

If you don't declare income, but you keep getting 250k in cash a year, you are going to have problems. If you incorporate, and write off every single expense, you pay less taxes than most working Americans (from a % rate), and can spend the money without sweating tax fraud.

When you report it do you have to specify that it was from online gambling?

[Monitor-Tan]

Even if you are a cocaine dealer, you have to report.. You can actually write in your occupation as drug reseller. IRS CAN NOT BY LAW, report you to any other agency

[SteveRyan]

So if a person made 25K in a year and it's their only source of income the IRS wouldn't care?

They would care, and want to know how you were able to pay bills and live without reporting any income.

You are required to report all gambling winnings regardless of how large or small. It is to be included as regular income. The IRS's problem, is that they have no way of knowing if you are gambling.

If I win $500 at the casino playing a slot machine, will the IRS know that I hit for $500? No. Will I tell them? No. Can they find out that I did not tell them? NO.

So, what they have done is required the Casino to give the winner a W-2G form if the winnings (For only a single jackpot or win) exceeds $1199.00. THEN the IRS will know for sure that you won the money and you must claim it.

Here's the catch...

IF you itemize your deductions, you can claim your losses, BUT only up to the amount that you have claimed to win.

If you had $25,000 in W-2G's and then claimed $25,000 in losses, the IRS might want some proof.

That's where it comes in handy to use a players card when gambling. The casino can track all of your wins and losses so that you have proof of loosing all the money you claimed.

If you cant prove it, they will adjust your return and make you pay it back.

[Hareeba!]

I wonder if the large proportion of posters here advocating tax avoidance is representative of US citizens in general or is it just of gamblers?

[NHL Pro Capper]

If you make less than 75k, and rent or lease crap, you are fine. If you own your own house, and your own car, and put down 10k income a year they flag it. DMV, irs, prop tax is ALL LINKED. You are run thru a comp database and algorithms computer if you are lying based on your net worth and your income. Wake up, dont you guys fking read anything?

[trumpdown]

I wonder if the large proportion of posters here advocating tax avoidance is representative of US citizens in general or is it just of gamblers?

Wasn't Australia born from cheats thieves and criminals? That's right they were....and a few people claiming to avoid hardly constitutes the population. Just because you don't legally have to pay as a "non professional" or (only source of income) doesn't mean you have any dog in this fight for US law.

[The Kraken]

Just another reason why the average joe shouldn't gamble. It's already -ev for them but factor in taxes and it becomes an even worse proposition.

[QQPALLADIUM]

Wasn't Australia born from cheats thieves and criminals? That's right they were....and a few people claiming to avoid hardly constitutes the population. Just because you don't legally have to pay as a "non professional" or (only source of income) doesn't mean you have any dog in this fight for US law.

During the late 18th and 19th centuries, large numbers of convicts were transported to the various Australian penal colonies by the British government. One of the primary reasons for the British settlement of Australia was the establishment of a penal colony to alleviate pressure on their overburdened correctional facilities. Over the 80 years more than 165,000 convicts were transported to Australia.

enough said.