Tax Question for the Panel

[Smitty]

Other than, you know, an actual accountant, I can't think of a better place to ask this question... how do you guys handle (legal) online wagering on your taxes? Other than the W2-Gs, which obviously need to be reported. Do you report everything? Or just the W2-Gs?

 

[kickserv]

Easy answer....gamble on anything in Canada (lottery, casino, horse racing, sports, keno, bingo, poker, whatever) where there is zero tax on gambling wins.

There, you are welcome, I am glad I was here to helpx44:

 

[Smitty]

hmmmm... any way to do that without actually being in Canada? Technically, I'm not allowed into Canada. xstop

 

[kickserv]

Technically, I'm not allowed into Canada. xstop

If you wear your Madjack T-shirt at the border, we'll let you in no questions askedx43:

 

[JOSHNAUDI]

Hey Google, Does Canada pay taxes to England?

Each Canadian pays approximately $1.55 to the Crown, totalling almost $59 million annually. These fees go to the Governor General, who not only represents the King but also carries out the parliamentary duties of the sovereign in their absence.

 

[kickserv]

Hey Google, Does Canada pay taxes to England?

Each Canadian pays approximately $1.55 to the Crown, totalling almost $59 million annually. These fees go to the Governor General, who not only represents the King but also carries out the parliamentary duties of the sovereign in their absence.

It used to be way more than that.

It will be zero dollars in a couple of years.

 

[yyz]

It used to be way more than that.

It will be zero dollars in a couple of years.

The trees are all kept equal, by hatchet, axe, and saw.......

 

[kickserv]

With all the multi million dollar winners here at Madjacks you'd think there would be plenty of people on here that would be able to answer Smitty's question.

 

[Smitty]

With all the multi million dollar winners here at Madjacks you'd think there would be plenty of people on here that would be able to answer Smitty's question.

right?

and i don't think my madjacks t-shirt still fits.

 

[kickserv]

and i don't think my madjacks t-shirt still fits.

You have to be relevant to get a new Madjack t-shirt........

https://www.madjacksports.com/forum...ws-ncaa/6949125-madness?p=6949180#post6949180

kurby

 

[redsfann]

The trees are all kept equal, by hatchet, axe, and saw.......

There is unrest in the forest
Trouble with the trees..

 

[Smitty]

You have to be relevant to get a new Madjack t-shirt........

https://www.madjacksports.com/forum...ws-ncaa/6949125-madness?p=6949180#post6949180

kurby

hahahahaha my lord, can't we all just get along? and, you know, answer a simple tax question?

 

[MadJack]

I only have about 3 weeks experience with a US legal sportsbook (MGM Indiana) so I can't answer that question but I imagine it's the same thing as regular casino gambling.

Since I usually get quite a few W2G's from video poker jackpots I have to report those and since I use the tax statements from the individual casinos I wind up claiming all winnings and losses. You can write off the W2G wins provided you have enough losses to cover that total. If not, pay up. I lost last year so I just write off the W2G income reported by the casinos.

They fuk you in Indiana and about 6 other states. No matter what, you have to pay the state income tax on all W2G wins. Period. You can't write off the wins with losses. Example; you hit a big VP win for $10K but before your trip is over you wind up losing $20K. You're still paying state income tax on the $10K.

 

[yyz]

I only have about 3 weeks experience with a US legal sportsbook (MGM Indiana) so I can't answer that question but I imagine it's the same thing as regular casino gambling.

Since I usually get quite a few W2G's from video poker jackpots I have to report those and since I use the tax statements from the individual casinos I wind up claiming all winnings and losses. You can write off the W2G wins provided you have enough losses to cover that total. If not, pay up. I lost last year so I just write off the W2G income reported by the casinos.

They fuk you in Indiana and about 6 other states. No matter what, you have to pay the state income tax on all W2G wins. Period. You can't write off the wins with losses. Example; you hit a big VP win for $10K but before your trip is over you wind up losing $20K. You're still paying state income tax on the $10K.

Wisconsin has that rule, also. I worked with a guy who didn't know this, and had over 1M in W2G forms.

He couldn't claw out from the $70,000 he owed.

 

[Smitty]

Thank you, Jack!

Yeah, 2022 was our first year in NY.

I've been dealing with this for a while now with horse racing. At first, I was only reporting what was on the W2G's, until I realized you could write off the losses against those winnings. At that point, I decided it would look suspicious to only have just enough losses to offset the winnings, so I reported everything. And, legally, that's probably what you're supposed to do. The problem with that... my volume was high enough that it drove my AGI way up.

If I do the same thing with my sports wagering... my AGI is going to be nuts.

I want to treat it the same as in-casino action... I sure the fuck ain't reporting anything I don't have to. I guess the big question is... does anyone know if these online books report your #s to the IRS, or only W2Gs?

And to your point re: Indiana... NY screws you pretty good, too. I never owed the state money on tax day until I started reporting my horse racing #s. Now, I owe them every year. Can't even imagine how bad it will be if I add in my sports betting.

I'm leaning towards not reporting the sports betting and seeing if I get audited in 5 years.

And if anyone from the IRS is reading this... my real name is Inigo Montoya and somebody hacked my account and I've never heard of Madjacks. :shrug:

 

[MadJack]

I'm leaning towards not reporting the sports betting and seeing if I get audited in 5 years.

Yeah, do that. I've done that maybe 3 times over the years. Just didn't report the W2Gs. A couple years later they send you a letter telling you what you owe. It includes penalty and interest but there's no problem. You don't get in any trouble or anything like that. And maybe they'll miss it.

 

[Smitty]

and, hell, maybe i'll be dead by then.

inigo montoya knows what he's going to do!

 

[JOSHNAUDI]

I guess the big question is... does anyone know if these online books report your #s to the IRS, or only W2Gs?

When income is reported to the IRS, the reporting entity also must supply you with a corresponding tax document.

So if I submit a 1096 to the IRS reporting I paid Smitty income, I also need to send you a 1099.

If I submit a W3 to the IRS reporting I paid Smitty income, I must send you a W2

W2s & 1099s were suppose to be sent out by Jan 31, although we still see some showing up now in March.

When you receive a W2(G), a W3 is submitted to the IRS, showing total pay and any withholding.. When you submit your return, which references your W2(G) it matches up with what is on file with the IRS W3. That dual reporting is the main way the IRS works and the first red flag station. Even when you report losses, as long as your gross number is the same or higher than the W3(s), that red flag doesn't go up. Your net number may be $0, but they keep track of the gross numbers that are reported.

The IRS says you are responsible for reporting your income, which takes away the defense of, "they didn't send me anything"

This all relates to Federal reporting, the States get to make up their own shitty tax & reporting laws. I can't speak to the reportiing in Wisky, Indi or NY.


None of this constitutes as tax advice. Just a little insight in to reporting of income.

Now back to making fun of Canadians who have to pay their lunch money to the British Monarch.

:0003:0003:0003

 

[kickserv]

Now back to making fun of Canadians who have to pay their lunch money to the British Monarch.

A whopping total of 0.7 percent of all tax dollars goes to that stupid Monarchy and in three years it will be zero dollars.



Now if you want to make fun of something, look at this thread and how fucking stupid and complicated it is to tax gambling wins/losses. What a fucking waste of money and time, fucking christ:facepalm:Just think of the millions of dollars spent and all the time wasted taxing gambling wins, can you US fuckers make it any more complicated?

Standing at a slot machine after you win 10 grand and waiting for some chick to give you a tax form, yeah that makes so much sense:facepalm: And let us not forget the people walking around taking losing bet slips off the ground to use on their taxes:mj07:

 

[Smitty]

When income is reported to the IRS, the reporting entity also must supply you with a corresponding tax document.

So if I submit a 1096 to the IRS reporting I paid Smitty income, I also need to send you a 1099.

If I submit a W3 to the IRS reporting I paid Smitty income, I must send you a W2

W2s & 1099s were suppose to be sent out by Jan 31, although we still see some showing up now in March.

When you receive a W2(G), a W3 is submitted to the IRS, showing total pay and any withholding.. When you submit your return, which references your W2(G) it matches up with what is on file with the IRS W3. That dual reporting is the main way the IRS works and the first red flag station. Even when you report losses, as long as your gross number is the same or higher than the W3(s), that red flag doesn't go up. Your net number may be $0, but they keep track of the gross numbers that are reported.

The IRS says you are responsible for reporting your income, which takes away the defense of, "they didn't send me anything"

This all relates to Federal reporting, the States get to make up their own shitty tax & reporting laws. I can't speak to the reportiing in Wisky, Indi or NY.


None of this constitutes as tax advice. Just a little insight in to reporting of income.

Now back to making fun of Canadians who have to pay their lunch money to the British Monarch.

:0003:0003:0003

Thank you, some great info. So if I understand this correctly.... if I go to, say, my DK and BetMGM accounts, and there is no 1099 or W2, that means they did not report the info to the IRS?