Taxes and huge cash withdrawals in IL

[kurosh]

I live in IL. I have about 6k in my neteller account. I'm 18 and my dad has me listed as a dependent I think on his taxes. I know absolutely nothing about taxes. I'm going to withdraw a significant amount of money from my neteller account, 3k-4k. I'm going to open another new bank account and put about 2k into there. I want to keep the other 2k in cash. How should I go about doing this? Neteller debit card? Withdraw to bank that my neteller account is connected to and take it out cash there? What are the implications? Someone help me out, I'm clueless.

[slickterp]

if you're still a dependent, you should be okay.

[kurosh]

What will my dad have to do though? And if I was independent, would I have to pay 25%?

[mmcd]

6k isn't all that much, don't worry about it. And getting 2k in cash certainly won't raise any eyebrows. Just cash out like you normally do, then go to the bank and withdraw the 2k.

[snowbank]

If you make much more by the end of the year, your dad may not be able to get an exemption for including you as a dependant. I can't remember the exact amount though.

[joeboe2001]

I am a dad. Is your money already with NetTeller or is it still in your account at the site you are playing on? I have yet to be in your situation (able to draw out much money) so I have no idea whether the gaming site follows any of our tax laws at all (I would bet they do, since even though they are all run outside the U.S. they don't want Congress to even think about passing any laws that limit our ability to participate in their games!)--if so, they might be following the usual principle of reporting any winnings over $600 to IRS, though I imagine they would only do so when you actually draw money out, as you are allowed to write off your losses up to the amount of your winnings. You have nothing to worry about as far as your father taking you as a dependent as long as you don't try to do so as well. I doubt strongly you would have to pay a rate as high as 25% on $4K--the lowest tax rate is still 10%, and that is only after a certain amount of income. You may have to pay nothing at all.