Anyone with some info? I've been looking at it tonight and it looks a little fuzzy.
Thanks, guys.
Thanks, guys.
Internet winnings and tax liability?
- Thread starter fla
- Start date
Easy to do. All money won goes under 'other income'. Then deduct all money lost (up to the amount won) as a 'gambling loss' on schedule A. If you had a losing year the two numbers will zero out.
As far as tax liability, of course you owe taxes on all gambling winnings, domestic or offshore. Even if you have a losing year, the IRS requires you to declare wins and losses, zeroing out the two numbers. Otherwise you run the risk of being charged with filing a false return.
You only owe taxes on your net winnings. If you can prove that you lost more than you won, than it will turn out to a "0" and you will not be paying taxes.
Example.........Say you go to Vegas and play Keno at $20.00 a ticket and you lose the first 100 times you play (you'd better keep the losing tickets)......You'd have lost $2000. On that 21st ticket you win.........$1500.................that is still a net loss of $500 and you won't be paying taxes. Its all about keeping losing stubs and claiming your winning tickets. If the winning ticket is large enough, many times the taxes will be taken out and of course the IRS will know about it! Again, the most important thing is to keep thiose losing tickets.
I knew a guy who won $2000 at the horse track in a trifecta and taxes were taken out (so we know the IRS knew he had won some money) so he spent the next two weeks going there and picking up losing tickets off the floor so he could offset that $2000.
If you do it for a living, you should keep good records.
As for offshore wagering......I'm not sure how or if you would want to show your winnings or loses because of that gray area concerning gambling in most U.S States.
I could talk all day on this subject from exeperience, but I'm tired and its getting late.
Wager2Win
Example.........Say you go to Vegas and play Keno at $20.00 a ticket and you lose the first 100 times you play (you'd better keep the losing tickets)......You'd have lost $2000. On that 21st ticket you win.........$1500.................that is still a net loss of $500 and you won't be paying taxes. Its all about keeping losing stubs and claiming your winning tickets. If the winning ticket is large enough, many times the taxes will be taken out and of course the IRS will know about it! Again, the most important thing is to keep thiose losing tickets.
I knew a guy who won $2000 at the horse track in a trifecta and taxes were taken out (so we know the IRS knew he had won some money) so he spent the next two weeks going there and picking up losing tickets off the floor so he could offset that $2000.
If you do it for a living, you should keep good records.
As for offshore wagering......I'm not sure how or if you would want to show your winnings or loses because of that gray area concerning gambling in most U.S States.
I could talk all day on this subject from exeperience, but I'm tired and its getting late.
Wager2Win
