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TAX RETURN FOR ONLINE GAMBLING???

Started by Qswaggerstupid18, December 21, 2016, 02:34:32 PM

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Qswaggerstupid18

OK!... I have won my FAIR share of money from playing online!... But I've heard LOTS of things about reporting your earrings!... Can someone with experience explain to me exactly how it works when filing your tax return??... Is it a certain amount, does it matter if I play online in overseas casinos??.... What is the TRUTH!!... Thanks

21 Aces

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Ehtelgaeb

From IRS.gov

Topic 419 - Gambling Income and Losses
The following rules apply to casual gamblers. Gambling winnings are fully taxable and you must report them on your tax return. Gambling income includes but is not limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income, or review How Do I Claim My Gambling Winnings and/or Losses?

Gambling Winnings
A payer is required to issue you a Form W-2G (PDF), Certain Gambling Winnings, if you receive certain gambling winnings or if you have any gambling winnings subject to federal income tax withholding. You must report all gambling winnings on your Form 1040 (PDF) as "Other Income" (line 21), including winnings that are not subject to withholding. In addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax. If you are considered a nonresident alien of the United States for income tax purposes and you have to file a tax return, you must use Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return. Refer to Publication 519, U.S. Tax Guide for Aliens, and Publication 901, U.S. Tax Treaties, for more information.

Gambling Losses
You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses on Form 1040, Schedule A (PDF) as an "Other Miscellaneous Deduction" (line 28) that is not subject to the 2% limit. A nonresident alien of the United States cannot deduct gambling losses.

Recordkeeping
It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

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21 Aces

While you are at it on this topic, I need ideas for my Secret Santa...

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Life is something you dominate if you're any good. - Tom Buchanan

alrelax

If they are issuing a W-2 you best include it.  Otherwise, all I can say from my years dealing with the IRS, is don't mess with them.

I don't know anything about on-line gaming, but I do 100% know of all the enforcement action and all he criminal stuff going on.  Somewhere there is records of them paying you, not like going into a casino here and cashing out chips under $10k, etc.  If there are records of an on-line gaming company sending funds to me here in the USA through my bank or debit cards that come back to me, I would sure as hell include that income if it was me.  I would be scared that they will get a hold of those recipients and they can easily see you did not declare it.  But that is me.
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21 Aces

How do you account for something that is not supposed be happening?




Qswaggerstupid18, not sure if you have missed it, but one of the hottest topics during this election and for years has been corporate and individual activity internationally and their tax implications.  Think about the activity you are asking about accounting for...  8)

Life is something you dominate if you're any good. - Tom Buchanan

Qswaggerstupid18

Quote from: alrelax on December 21, 2016, 05:09:25 PM
If they are issuing a W-2 you best include it.  Otherwise, all I can say from my years dealing with the IRS, is don't mess with them. I thought about it showing up from my bank account info also... But everything I do is in Bitcoin ... So it will show the funds coming from my bitcoin account...I have a mixture of different funds in there... I'm just going to contact the staff on the online site! Thanks

I don't know anything about on-line gaming, but I do 100% know of all the enforcement action and all he criminal stuff going on.  Somewhere there is records of them paying you, not like going into a casino here and cashing out chips under $10k, etc.  If there are records of an on-line gaming company sending funds to me here in the USA through my bank or debit cards that come back to me, I would sure as hell include that income if it was me.  I would be scared that they will get a hold of those recipients and they can easily see you did not declare it.  But that is me.

vo rogue

      Q-STUPID-18,   How did you go with the doctor tom LAWSUIT ?.

ProfessorSlot

Yes you need to report any income or winning made on gambling. IRS will then compute how much you need to pay or if you have any tax return. I think you also need to declare your loses to know if you need to pay tax or not.