Win-Loss: Your Guide to Gambling Winnings Taxation
Win-Loss: Your Guide to Gambling Winnings Taxation
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Gambling Winnings & Taxes in US 2021 » Do I have to pay Taxes?
Gambling Winnings and Income Taxes for 2020. Taxable.
8 Tax Tips for Gambling Winnings and Losses Kiplinger
gambling win loss taxes
gambling win loss taxes - win
If gambling losses are only deductible up to the amount of your winnings, then doesn't that mean its possible to get taxed on money you don't have?
Here's a hypothetical. Say you Doordashed and make 20k this year (I'm picking a non w-2 withholding job for simplicity). Say quadrupled that on bitcoin to 80k. You then decide to gamble this all on a csgo game. You lose it all. Are you really expected to pay taxes on 20k of self employed income and then 60k of capital gains if you have literally nothing? Here's the link to the IRS rule https://www.irs.gov/taxtopics/tc419
I tired this on /accounting and didn’t get much back.. So with the new rules, to deduct gambling losses you have to itemize in order to deduct losses.. When I get a tax form from DraftKings or Fan Duel, how are my winnings going to be presented? The way I read it, if I won $10,001 and lost $10,000, and didn’t want to itemize, I would need to declare the total winnings ($10,000) as income.. I don’t really have this problem, but this came up at a happy hour the other night and I can’t figure it out..
Won 20k in gambling winnings last year. How much can I prove in losses to not pay taxes on the winnings?
I keep receipts of all my poker buy-ins for tax purposes, my friends say I can apply my loses to my winnings? I'm hoping to pay the minimum on my winnings. Feedback would be great! Thanks!
Tax - Gambling winnings that are off-set by losses, how does this impact total income?
If you have say $100,000 in gambling winnings and $100,000 in gambling losses how will this impact your total earned income? Do the losses bring down total earned income or no?
I just won a small poker tournament. How are gambling wins and losses taxed?
Without any prior knowledge I might assume that winnings are taxed as regular income. Is this anywhere close to correct? Do losses factor in anywhere into taxes?
So last week i won a jackpot of $2,000 from a slot machine in a casino and i received a W-2G. The next day i basically lost all of them back to the casino (i know im stupid and believe me i know! lol ) My question is, would i still have to claim the $2,000 i won even though i lost them all again? How do i prove that i lost them all again if i didn’t have a membership card inserted into the slots i played when i lost?
Yes, this is another tax thread. These are the direct answers I received from my CPA who has 25+ years of experience filing for gamblers, both professional and not. Don't shoot the messenger. Do I report winnings gross or net? Surely net, right? Right!?? Winnings are reported on a gross amount. If you open an app and it shows a ledger of $30,000 winnings, $28,000 bets wagered, Win/Loss $2000, the IRS needs the $30,000 number. The $28,000 gets reported on a Schedule A under gambling losses, and only factors into your net tax liability if you itemize. But isn't sports betting on an app just one long session? I don't pay taxes on every hand of blackjack I win. No. Unfortunately this matter relies on case law, for which the precedent for online gambling is an "every bet is a session" accounting. So if I don't itemize and I have huge gross winnings, that means I could owe thousands in taxes? Yes. If you have thousands in gross winnings and didn't plan to itemize, you will essentially owe taxes on the difference between your standard deduction and your pre-gambling itemized tax amount when switching to an itemized gambling loss deduction. If I report net winnings instead of doing it by the book, what are the odds I get audited? Almost zero. Obviously my CPA didn't advise me to do this, but of the thousands of filings she had done in her career, she has only had 3 audits, and all of them were due to inconsistencies on a Schedule C filed only by professional gamblers. She also said that due to COVID delays, the odds of getting audited are even smaller. Are there any other hidden downsides to having an inflated Adjusted Gross Income when I have gross winnings of tens of thousands of dollars? Yes. Student loan interest deductions and child tax credits go away at certain AGI. On the state tax side, she said certain states don't allow ANY deduction for gambling losses on state taxes. I.e. if you live in IL, you probably just shouldn't ever gamble. Every bet you win comes with a 4.95% tax on gross winnings. If your state doesn't allow gambling loss offsets, there is no limit to what you could owe regardless of your year-end profitability.
Well, I’ve seen a ton of posts on here recently about taxes. Everyone arguing about who is right, who is wrong. The constant “that’s dumb. Nobody would gamble if they did taxes like that”. Well, I filed my taxes last night. Everyone saying that you report total winnings as income and report losses as a deduction is correct. You do NOT claim net winnings. I don’t care if “FanDuel’s app says net winnings”. I used Credit Karma to file. In the income section it specifically states “Gambling Winnings (excluding losses)” in the deductions section, it asks for “Gambling Losses”. This is where you report your losses. So, if you won $5k, you report all $5k as income. If you lost $4500, you report that in deductions. You will then pay taxes on the $500 net profit if you can itemize. YOU DO NOT PUT $500 IN THE INCOME SECTION. As we all wondered, unless you have enough deductions to actually itemize, you’re stuck paying taxes on all of the winnings and your losses get lumped into the standard deduction. Not here to argue or get into “dude, you’re wrong and stupid” back and forth. I’m not wrong, I’m correct. If you do not believe me, file however you would like to and hope the IRS does not come knocking. Happy tax season y’all.
Missouri lawmakers are pushing sports betting in the state with not one but THREE separate sports betting bills introduced this week, to generate $50 million / year in taxes
Three Republican senators have filed three similar bills, all of which are aimed at legalizing sports betting in the state of Missouri. The three senators are: Sen. Caleb Rowden sponsor of SB 256 Sen. Denny Hoskins sponsor of SB 18 Sen. Tony Luetkemeyer sponsor of SB 217 While all three bills relate to online and mobile sports betting, there are slight differences between the first two mentioned above in terms of tax rates. SB 256 proposes a tax rate of 6.75% which would put Missouri on a par with Iowa as the state with the lowest sports betting tax. SB 18 proposes a higher tax rate of 9%. SB 217 differs in that it compels operators to use official sports league data. All three senators have said that they hope the tax generated from a regulated sports betting industry would go directly to education. Their estimates put this figure at around $50 million per year. https://gamblingindustrynews.com/news/lawmakers-file-three-bills-to-legalize-sports-betting-in-missouri/
Gambling Addiction Question related to taxes - Really worried - please help
Hi, I'm new to this group and still am struggling with gambling. I am kind of panicking right now because I keep seeing online that you have to pay taxes on the amount of money that you won even though you may have lost more if you do. I deposited ~$40,000 and I technically won $275,797+ last year (over the whole year not in one lump sum but in a lot of bets), but lost $314,789 but I don't think I itemize my deductions so I am panicking because does this mean I have to pay taxes on $275,797???? Please someone help I am seriously panicking, my heart is racing, and I am actually really scared I owe a huge amount of money. I had no idea any of this was a thing and I thought that I was simply just down $40,000. I have no idea who to contact to figure this out.
CreditKarma Follow Up - Gambling Winnings Vs. Losses
On the recent thread, JustASalesGuy22 said that he could put in his total gambling winnings in the "Gambling Winnings" section of CreditKarma and then go to the Deductions page and put in the losses. When I go to the Gambling winnings page, the only thing it asks for is information for a W2-G. I've tried flipping from the standard deduction to itemized and it does not change. CreditKarma support also had no relevant advice. Has anyone else been able to enter winnings without the W2-G requirement? (I tried reaching out and replying in the original thread, but never received a response for help, which is why i'm opening it to the group. Also, I am just exploring the numbers right now, not finalizing a file so save the see a professional as I will still be considering that.)
Sports betting was legalized in my state in 2020 and I placed some bets over the course of the year. I only deposited $500 but eventually turned that into roughly $15,000 in bets total. My "Wins" column totaled $10,000 but the losses worked out to roughly $14k. My question is if I am supposed to report that I "won" $10,000 even though I never withdrew any of that money or even 'realized' those wins. In short, it seems odd that $500 of cash would be seen as 10k wins when it was a product of many small bets.
This is prompted by this thread from u/VinX1997. This is all hypothetical for me as I'm only paper trading right now and haven't placed any real bets, but I'm trying to figure out if getting into sports betting would be profitable for me - and it looks like it would depending on how the taxes work. Assume that I would report everything, whether it triggered a 1099 or not. Written like I'm explaining it to a 5 year old, because I'm trying to understand it myself: Situation 1: Say I make 25 bets, each for $1,000, all of them at -200. This means that if I win a bet, I win $500. Assume I win 17 of the bets and lose 8.
My total wagers are $25,000.
My total payouts are $25,500
My total winnings are $8,500
My total losses are $8,000
My net winnings are $500
What are my taxes?
Is it $1,262 - 4.95% of my total payouts?
Is it $421 - 4.95% of my total winnings?
Is it $25 - 4.95% of my net winnings?
Situation 2:
Let's turn it around and say I win only 8, and lose 17.
In gambling, there are winners and losers. But even the winners can be losers if they don't pay their taxes! Any money you win gambling or wagering is considered taxable income by the IRS as is the fair market value of any item you win. Gambling income isn't just card games and casinos; it also includes winnings from racetracks, game shows, lotteries, and possibly even bingo. Certain special rules apply to gambling income and there are strict recordkeeping requirements. This interview will help you determine how to claim your gambling winnings and/or losses. Information You'll Need. Your and your spouse's filing status. Amount of your gambling winnings and losses. Any information provided to you on a Form W-2G. The US uses a flat 25% tax rate on all gambling winnings. Taxes are applied to all gambling, including sweepstakes and other prizes. But your losses can only be deducted for up to the reported gambling winnings amount. So you must have: A correct record of your betting losses and returns. Verifiable gambling activity report. If you win the money listed below, the returns will be communicated to the IRS by the Payer through Form W2-G. The winnings include: How to deduct gambling losses on your 2019 taxes. Debt Personal Finance Tax Filing Taxes. ... In this instance, you won’t owe tax on your winnings because your total loss is greater than your total win by $2,000. However, you do not get to deduct that net $2,000 loss, only the first $6,000. A win/loss statement is an accounting provided by a single casino that states the player's wins and losses while gambling there, according to Trib Total Media. The casino ties the win/loss statement to guests' players cards, so they are sometimes inaccurate. Gambling Losses. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as "Other Itemized Deductions." For many of us, gambling means buying the occasional lottery ticket on the way home from work, but the Internal Revenue Service says that casual gambling also includes raffles, casino games, poker, sports betting—and, yes, even fantasy football. When you win, your winnings are taxable income, subject to its own tax rules. Gambling losses are indeed tax deductible, but only to the extent of your winnings and requires you to report all the money you win as taxable income on your return. The deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses. 8 Tax Tips for Gambling Winnings and Losses Whether you're betting on Tom Brady or Patrick Mahomes to win this year's Super Bowl, don't let the IRS beat you at tax time.
ASL: Gambling Winnings and Losses (Captions & Audio)
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