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INCOME TAX-FILING DEADLINE

Discussion in 'America the Beautiful' started by footdr, Apr 16, 2007.

    Apr 16, 2007
  1. footdr

    footdr Banned User: PITA violations of the Forum Rules

    Occupation:
    management
    Location:
    cyberspace
    I can not decide what to do. I have read everything I can find about gambling taxes. I think I already missed the boat.

    Has anyone consulted a tax attorney or their accountant regarding the online gambling situation. The log book requirement is really hard to apply to online gambling.i.e. there is no machine number, no one present (one of the requirements is to list other people present). It is just not the same as going to brick and mortar casino. And since it now "illegal in IRS minds", there are no specific guidelines to help us report.

    I feel to do anything for last year would be opening a can of worms.

    I am having an anxiety attack:eek:
     
    1 person likes this.
  2. Apr 16, 2007
  3. ok2playme

    ok2playme Dormant account

    Occupation:
    Business Owner
    Location:
    Pittsburgh,PA
    River Belle not paid $8,000.00 broken promises

    Footdr,

    If you have won more than you spent then claim it as other income received. That way if you are audited you indeed have claimed the winnings. You may have classified it wrong but I least it won't be tax evasion!
     
  4. Apr 16, 2007
  5. sdaddy

    sdaddy Meister Member

    Occupation:
    Retired
    Location:
    Arizona
    You have to claim the total of your winning sessions under "miscellaneous income" on Form 1040. The total of your losing sessions (up to the amount of your winnings) can then be claimed as an itemized deduction on Schedule A.

    For my purposes a "session" begins with what I deposit at the casino and ends with what I withdraw. The IRS would have no other way disprove that by looking at my financial records.
     
  6. Apr 17, 2007
  7. footdr

    footdr Banned User: PITA violations of the Forum Rules

    Occupation:
    management
    Location:
    cyberspace
    NOT AS DIFFICULT AS I THOUGHT

    Looked things over and I have what is needed to itemize my losses. So I shouldn't have a problem.

    I have always entered my daily deposits by amount and name of casino in a notebook, (filled up 6 of those) also always record the date, amount, casino, transaction number for withdrawals.

    Any information missing(should I be audited:eek: , can be obtained by reviewing my bank statements.

    Also, I think I will contact Neteller, Citadel and Firepay to ask for a copy of all my transactions (debits and credits) . Hopefully they will be able to provide those . I have kept most email confirmations of deposits and withdrawals in email folders, dating back to 2004(lost some though when my computer crashed in 2004 and had to replace it)

    So I am all set for 2006 taxes( Our accountant already filed an extension, so I have some time to work on this. At best I am even, but more likely in the RED.

    Only thing missing is I didn't write down the games I played at each place, so lets hope that isn't going to be a big issue.
     
    Last edited: Apr 17, 2007
  8. Apr 17, 2007
  9. EasyRhino

    EasyRhino Dormant account

    Occupation:
    Analyst
    Location:
    San Diego
    I took the shortcut and just didn't report any of the mess.

    So, for anyone who actually is reporting their gambling activities accurately, I would love to hear how your results went, including:

    1) Difficulty of filing
    2) Impact on taxes paid
    3) If you get audited!
     
  10. Apr 17, 2007
  11. pokeraddict

    pokeraddict Webmaster

    Occupation:
    Pro Poker Player
    Location:
    Las Vegas
    This is my 4th year filing a schedule C as a pro. This way you can net your wins/loses instead of getting screwed if you don't itemize because your losing sessions will be useless as a deduction. To do this you need to show a pattern of winning, not just a lucky year. If you do not itemize (basically if you don't have mortgage interest to deduct) then you cannot deduct your losses because your standard deduction is going to be more.

    If your deductable losses are more then the standard deduction then it is probably time to look at filing as a pro, especially if you have had wins in 2 of the last 3 years or 3 out of 5 and have travel expenses.

    The benefits to filing as a pro is being able to net wins/loses but also you can deduct expenses such as airfare, hotels, taxis and even mileage in many cases. The drawback is you have to pay self employment tax which is 15.3% although half is deductable so it comes to 12-13% depending on your tax bracket.

    Disclaimer: I am not an accountant, consult one before following my lead.
     
  12. Apr 17, 2007
  13. vinylweatherman

    vinylweatherman You type well loads CAG MM

    Occupation:
    STILL At Leisure
    Location:
    United Kingdom
    OR

    ......or emigrate to the UK, and you will not have to file anything UNLESS you are a pro gambler. :D
    Our revenue will only audit a gambler who finances a decent lifestyle without an alternative means of explanation (such as a well paid job). Casino games, even poker, are legally classed as luck, so it is difficult for the revenue to prove you are a "pro" at these. Sports betting is a different matter, and this is where most pro gamblers make their money, and the revenue accept that this is more skill than luck in some cases, similar to stock trading.
    I enjoy being able to have any winnings tax free, and am surprised the US tax wins on games that should be pure chance.
    It does not mean the UK government does not get its cut, what happens is that a tax is levied on the profits of the bookmakers and casinos, which individual gamblers do not normally have to worry about.
     

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