The hundredth tax question...

[Matt24]

I was thinking 15% was the lowest tax bracket, but I may be wrong, I am sure you could find that out right quick. are you going to college? You get federal back while you are in school right?

[dakine]

Hey Tax Evader, Maybe this will answer your questions.

http://www.irs.gov/instructions/iw2g/ar02.html#d0e98

If not, talk to your tax preparer. Some of the morons that are trying to answer your questions have no clue about reporting Poker winnings. [img]/images/graemlins/mad.gif[/img]

[kurosh]

[ QUOTE ]
Hey Tax Evader, Maybe this will answer your questions.

http://www.irs.gov/instructions/iw2g/ar02.html#d0e98

If not, talk to your tax preparer. Some of the morons that are trying to answer your questions have no clue about reporting Poker winnings. [img]/images/graemlins/mad.gif[/img]

[/ QUOTE ]

I looked at that and it only talks about:
[ QUOTE ]
The types of gambling are discussed in these instructions under the following three headings:
1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later
2. Sweepstakes, Wagering Pools, and Lotteries
3. Bingo, Keno, and Slot Machines


[/ QUOTE ]

What am I missing?

[Zetack]

On the distinction your dad is making between neteller and a bank I don't buy it. Your bank has your SS # too ya know. A bank has to report 10,000 dollar deposits and in some cases cumulative deposits that add up to 10k and also "suspicious" transactions.

There's also lots of procedures that went into place for Anti-money laundering in the post 9-11 debacle that banks have to follow but I'm not familiar enough with them to even give you a general idea of that consists of.

I don't know if neteller has to follow the same reporting requirements that banks do but I can't imagine that they would have stricter reporting requirements. Neteller is bascally a pass through service, they have no idea what money passing through their service is income of some sort--does your dad belive they report every single transaction they process to the IRS? Or do they single out gambling transactions?

As far as paying income tax on your winnings--well its a really screwy system. You have to add up the amount from every single winning session you had (debatedly, perhaps even every single winning table) and report that as income. Then you can add up your losing sessions (or tables) and other gambling losses and put them as itemized deductions. You can not simply subtract your losses from your winnings and report the total you won as income.

So if your total losses are less than the standard deduction is, generally speaking, you don't get to count your losses at all. Essentially, for a low limit player its real likely that you'll get taxed on much more winnings than you actually had if you are honest about these things.

I think its designed to make the recreational gambler cheat on his taxes, although why they would want that I have no idea.

--Zetack

[snowbank]

"I looked at that and it only talks about:

Quote:
--------------------------------------------------------------------------------

The types of gambling are discussed in these instructions under the following three headings:
1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later
2. Sweepstakes, Wagering Pools, and Lotteries
3. Bingo, Keno, and Slot Machines



--------------------------------------------------------------------------------
What am I missing?"

Im'a take a crazy shot and say poker. [img]/images/graemlins/cool.gif[/img]

[dakine]

This is the entire site that was posted on "News, Views and Gossip."

http://www.gambling-law-us.com/

Take a little time and search the site. It will enlighten you.

About two months ago on NVG I posted one other gambling tax information site. If I find it, I'll reply back to you with the url.

[dakine]

Kurosh. this is the other site that I posted a few months ago.

http://www.gamblingandthelaw.com/

The above site contains a lot of information. I suggest you make the time, and search the articles. Proffessor I. Nelson Rose is one of the leading experts on gambling and the law.

[wopples]

[img]/images/graemlins/heart.gif[/img] YOUR DAD IS A CLASSIC EXAMPLE OF "OH JEE MY LIFE IS SO BORING I AM GONNA INVENT THINGS TO WORRY ABOUT, AND PAY ALOT MORE THAN I SHOULD ON TAXES!!! IF YOUR INCOME IS LESS THAN 7,000 YOU ARE EXEMPT FROM ANY TAXES AT ALL DEPENDENT OR NOT. TELL YOUR DAD TO STOP BEING SENILE AND WORRY ABOUT SOMETHING IMPORTANT, (LIKE HOW THE USA PATRIOT ACT IS STOMPLING OUR RIGHTS)!!!!! [img]/images/graemlins/cool.gif[/img]

[kurosh]

[ QUOTE ]
[img]/images/graemlins/heart.gif[/img] YOUR DAD IS A CLASSIC EXAMPLE OF "OH JEE MY LIFE IS SO BORING I AM GONNA INVENT THINGS TO WORRY ABOUT, AND PAY ALOT MORE THAN I SHOULD ON TAXES!!! IF YOUR INCOME IS LESS THAN 7,000 YOU ARE EXEMPT FROM ANY TAXES AT ALL DEPENDENT OR NOT. TELL YOUR DAD TO STOP BEING SENILE AND WORRY ABOUT SOMETHING IMPORTANT, (LIKE HOW THE USA PATRIOT ACT IS STOMPLING OUR RIGHTS)!!!!! [img]/images/graemlins/cool.gif[/img]

[/ QUOTE ]

Haha, actually he was giving me crap about the patriot act too. Something about how now with the patriot act, any transactions over 1k instead of 10k from other countries are flagged. Thus my international casino gambling would be flagged.

[dakine]

quote;IF YOUR INCOME IS LESS THAN 7,000 YOU ARE EXEMPT FROM ANY TAXES AT ALL DEPENDENT OR NOT.unquote.

Hey Wopples, where did you get that information from, Bangladesh?

Read the tax laws or consult your tax preparer.