Online winnings taxes?

[JlSpitFirelC]

After all of the advice/opinions you have received in this thread here, I imagine you are most likely confused really good right now...your best bet at this point since you are obviously worried about doing the right thing in your mind would be to simply pick up the phone and call the IRS and ask them what you should do. Or you could always ask your parents...

If I call the IRS won't they just say give us your money and stop gambling online?

[silcnlayc]

If I call the IRS won't they just say give us your money and stop gambling online?

Too funny..of course they will!

[RobWin]

If I call the IRS won't they just say give us your money and stop gambling online?

The IRS can only ask or enforce you to pay what they consider is rightfully theirs, and there again it would depend on how you file and they have no legal enforcement as far as online gambling goes but the DOJ does think that they do !!

[babs7262]

Talk to your parents before making any decision. Its not in your best interest to let the IRS know infact, its not a good idea to even talk about it in here. period.

[JlSpitFirelC]

Talk to your parents before making any decision. Its not in your best interest to let the IRS know infact, its not a good idea to even talk about it in here. period.

Big Brothers watching

Thing is... I have been talking to my parents, but they are confused about online winnings also.

Wish I could just forget about it :/

[Casinomeister]

If I call the IRS won't they just say give us your money and stop gambling online?

I'd call the IRS. Big brother or not, I've had to call them a number of times concerning my complicated tax situations. I've found them VERY helpful and friendly. And in no way did I feel that they were being intrusive or taking down notes on what I was asking etc.

If you feel uncomfortable, just tell them you're calling for a friend who has some tax questions

[GrandMaster]

But If you pay taxes for online gambling isnt that admitting an illegal activity as far as the banking part goes? I wouldnt think that any online casino would send a tax form to a US citizen

You can put drug dealer as your occupation if you wish and the IRS will happily take its cut. Remember that Alphonse Gabriel Capone was done for income tax evasion, not for racketeering. You don't have to specify online gambling as the source of the income, you can just write gambling.

[JlSpitFirelC]

You can put drug dealer as your occupation if you wish and the IRS will happily take its cut. Remember that Alphonse Gabriel Capone was done for income tax evasion, not for racketeering. You don't have to specify online gambling as the source of the income, you can just write gambling.

Ok.. I like that answer .. now.. which form(s) would I need to claim my source of income as gambling?

and any idea on how much money I should safely set aside? I'm the most nervous about that.

[sdaddy]

Ok.. I like that answer .. now.. which form(s) would I need to claim my source of income as gambling?

File a Form 1040. On line 21 is an entry for "Other Income." That's where you state the source of the income (gambling winnings) and the total amount for the year. Then on Schedule A you can claim the total amount of your gambling losses for the year on line 28: "Other Miscellaneous Deductions."

[JlSpitFirelC]

File a Form 1040. On line 21 is an entry for "Other Income." That's where you state the source of the income (gambling winnings) and the total amount for the year. Then on Schedule A you can claim the total amount of your gambling losses for the year on line 28: "Other Miscellaneous Deductions."

Great.. thanks a lot