Gambling Taxes

THATWACOKID · #1 04-26-2005, 07:22 PM

Does anyone know the laws of income taxes for people 21 and under? I would appreciate any kind of help. I want to report my winnings but I don't want to get in trouble for underage gambling... TIA

WACO

wmspringer · #2 04-26-2005, 08:02 PM

IANAL or an accountant, so take this with a rather large grain of salt.. but I do know the IRS gets upset if you don't report everything :-) I would say just report it as self-employment income, much as you would if you were mowing lawns or whatnot. (This assumes you made over $400/year, else it's below the limit anyway)

Now, if you're over 18, you could just ask how to report winnings from the lottery, since you only have to be 18 to play the lottery...

Niediam · #3 04-26-2005, 08:30 PM

There is literally greater odds that you will fall down a flight of stairs tomorrow and die than there is of getting into any legal trouble from reporting gambling income when you are not old enough to gamble in your jourisdiction.

pzhon · #4 04-27-2005, 01:08 AM

Illegal income, such as stolen or embezzled money, must be included in your gross income.

The IRS does not turn this information over to law enforcement agencies. In fact, it is forbidden from doing so, though some people suspect it has violated this in a few cases.

FieryJustice · #5 04-27-2005, 03:26 AM

I have this same problem. I have recently started cashing out large sums of money and I have no clue how to report it. Should I report quatarly or just once a year? also, should I seek an accountant or just use turbotax. LMK

WhiteWolf · #6 04-27-2005, 12:11 PM

Lots of info on US tax laws for gambling income here

Jeffage · #7 04-27-2005, 12:20 PM

LMK,

I recommend consulting an accountant. It is much easier and much cheaper (mine was like 250). You must file quarterly or else you will be hit with interest and penalties.

Jeff

THATWACOKID · #8 04-27-2005, 07:30 PM

Should I only report the money that I cash out from online poker?

Jeffage · #9 04-27-2005, 08:58 PM

If you want to follow the law, report everything.

Jeff

TomBrooks · #10 05-02-2005, 08:21 PM

[ QUOTE ]
Illegal income, such as stolen or embezzled money, must be included in your gross income.

[/ QUOTE ]
You must also include any income you recieve from a bribe. No kidding, check it out.

You may not include any bribes and kickbacks you make as an expense, however. The IRS cites the illegality of giving bribes and kickbacks so they won't let you deduct them.

Seems a little hypocritical, doesn't it?