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under what circumstances would the IRS look at my account? I am still a dependent, I barely have any net winnings and as far as official records go I have never held even a part time job.(i worked for my aunt for a summer)
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If you are subject to US tax laws, and if you have made $10,000 playing poker and you don't declare it and pay taxes on it, you are in violation of the law, period. Your age, dependency, other employment, the legality of your winnings, etc., etc., are irrelevant.
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You are incorrect, there is no $10,000 threshold.
Russel Fox already summed it up, take his advice only... ignore the advice of others in this thread. Russell is one of the foremost authorities on taxation for gamblers, Mr. Fox is a tax practitioner enrolled to practice before the Internal Revenue Service. You can read some of his essays at
www.gambling-law-us.com
TT [img]/images/graemlins/club.gif[/img]
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No, TT, you are incorrect. I never said there was a $10,000 threshhold. In fact, I said if you made $10,000 playing poker and didn't declare it, you would be in violation of the law--and you would be, because $10,000 is over the threshhold that requires you to file.
There is a section on who is required to file in the front of the income tax booklet. If you meet the criteria for filing listed there, you must file, and if you must file, you must declare all your gambling winnings, as well as all other income derived from taxable sources. Note, you must declare all your winnings without regard to your losses. If you itemize, you can deduct your losses from your winnings up to the amount of your winnings. You cannot use gambling losses to offset non-gambling income. You MUST keep records of what you won and lost where/when to substantiate your claims. If you are a professional gambler and gambling is your business, then you file schedule C and the rules are different and complicated. The point is, for the OP, that his age and dependency and whether he gambles legally or illegally are irrelevant. He must add up his income from taxable sources (e.g., wages, salaries, interest, dividends, profits and TOTAL--not net-- gambling winnings). If his income is above the threshhold for filing, then he must declare every dollar of his gambling winnings without regard to his losses. If he has enough deductions to make it worthwhile to itemize, then he can deduct his losses from his winnings.
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There have been numerous incorrect posts in the past declaring there to be a threshold of $10,000, hence your original post can easily be misunderstood as also advocating a fictitious threshold. Glad to see you and I are on the same page.
TT [img]/images/graemlins/club.gif[/img]