Online winnings taxes?

[JlSpitFirelC]

So I'm trying to figure out how much I am going to owe in taxes... any advice on how I can figure this out? I'm 20 and made roughly 8,000 this year.

[catrina m]

Did you get a 1099 from misc. gambling?

[RobWin]

So I'm trying to figure out how much I am going to owe in taxes... any advice on how I can figure this out? I'm 20 and made roughly 8,000 this year.

If you have kept up with your losses and what you have spent in gambling this year then you can wash those against your winnings but no more that what your winnings were...so in that respect you may not owe a dime if you have had as much in losses or more than your winnings amounted to !!

[NASHVEGAS]

Almost what Rob said but you would have to be a professional.

Here is the Tax Code for the non-professional. I wish this Code would be changed to be more practical:

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

"First, let's examine the situation for the casual (or non-professional) gambler. The Tax Code requires gamblers to record their wins and losses by session. You take all of your winning sessions for the year, add them together, and you come up with a result. Let's assume that's $12,000.00. Then you take all your losing sessions, add those up, and come up with a second number. Let's further assume that's $10,000. However, you cannot net those two numbers! The wins go as part of Other Income (line 21) while the losses are an itemizable deduction (Schedule A) not subject to the 2% AGI limitation on itemized deductions.

Well, you're probably thinking that there's no particular difference between netting and this result. That's wrong, for three reasons. First, if you don't itemize your deductions (because you don't have enough deductions to itemize) you lose out on your gambling losses. In such a situation your gambling losses are presumed to be part of your standard deduction. Second, many items on the tax return are tied to Adjusted Gross Income (AGI). The prescribed method for handling gambling income and losses increases AGI (even if the taxable income remains unchanged). This can limit some taxpayers' other deductions, including medical and miscellaneous itemized deductions. Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). And gambling losses aren't deductible in the AMT............"
.

[brianzz]

FYI, it'd be in your best interest to contact a CPA as the IRS seems to change the rules as they see fit as to what is considered a legitimate recording of a loss.

As mentioned previously, if you didn't get a W2G or a 1099 from a casino I wouldn't worry about it. Might find yourself in more trouble trying to be an honest citizen, especially when it comes to online gambling, more so in certain states.

[NASHVEGAS]

FYI, it'd be in your best interest to contact a CPA!

Yep, just didn't feel like typing that redundant disclaimer again....Also, ask the same question to 5 CPA's/Accountants and a good chance you will get 5 different answers

As mentioned previously, if you didn't get a W2G or a 1099 from a casino I wouldn't worry about it. Might find yourself in more trouble trying to be an honest citizen, especially when it comes to online gambling, more so in certain states

I completely disagree with your first sentence and almost completely agree with your second sentence except I would not limit it to just online gambling and/or state. Sucks,huh!!

[suzecat]

Ugh, CPAs/accountants who disagree amongst themselves.............boy do I hate it when that happens Must be why the tax code was written......

and I love the "your Honor, I didn't get a 1099" defense

[Jasminebed]

Okay, before I digress, I would suggest you use a tax software, based on 2008 to estimate your taxes without filing (this will be free), so you know how big a bill to be saving for in April, 2009

In Canada, gambling winnings are considered a "winfall". Ditto horsebets, lottery winnings and bingo. And gameshow winnings.

I was working as a legal secretary in the late 1970's when a case Revenue Canada (our IRS equivalent) was looking for taxes from a horse gambler who had won $45,000 circa 1973 went all the way to the Supreme Court of Canada, who ruled that Revenue Canada did indeed have a right to claim taxes on his gambling winnings, provided that gambling losses were allowed. Not just for this fellow, but for all gamblers. If gambling was a business, then gambling losses were an acceptable business expense.

Revenue Canada decided that there were more losers than winners, and dropped the case.

Most Canadians who win at US land based casinos are eligible for a refund.

Do not pay an agency to do this, the casinos are very helpful in providing you with the proper paperwork.

But if you are a US player playing from a non-banned site, I highly recommend you tell the IRS about your winnings. It is taxable income in the US, and hence the machines where the jackpot is $1199. The IRS has more power to investigate income than DEA, FBI and state and municipal police combined.

Governments do not like when you owe them money.

If you US citizens come north and gamble, we will not deduct any taxes from your winnings. But it is your obligation to report it to customs as you re-enter the US, (ya, right). And there is something really stinky about withholding funds from a win, when you (probably) are not up overall that much.

There are many more folks from the US more conversant with your laws than me, but I just wanted to put in my perspective.

[wayram]

Move to Oz mate, no taxes on gambling winnings

[DogBoy001]

Move to Oz mate, no taxes on gambling winnings

Damn right...I was chuckling at the irony that the US blackballs online play and then expects to tax its citizens based on their online wins!

Most amusing

Wooof