Taxes on winnings?

[Ichabod]

Yes, I'm a rookie here, and no, I haven't won anything yet exciting enough to have to worry about paying taxes on.

I think the winnings on a slot machine of $1,200 and over must be taxed, is there a limit for online poker?

Thanks

[PuppetMaster]

[ QUOTE ]
Yes, I'm a rookie here, and no, I haven't won anything yet exciting enough to have to worry about paying taxes on.

I think the winnings on a slot machine of $1,200 and over must be taxed, is there a limit for online poker?

Thanks

[/ QUOTE ]
Every cent.

[SamJack]

[ QUOTE ]
I think the winnings on a slot machine of $1,200 and over must be taxed, is there a limit for online poker?

[/ QUOTE ]

I think everyone cent of winning on your slot machine winning are taxable. It is just that if your winning is greater than $1200, the casino is required to issue a 1099 which means IRS will know about it upfront.

I'm no tax expert so this is all a guess.

Sam

[PuppetMaster]

[ QUOTE ]
[ QUOTE ]
I think the winnings on a slot machine of $1,200 and over must be taxed, is there a limit for online poker?

[/ QUOTE ]

I think everyone cent of winning on your slot machine winning are taxable. It is just that if your winning is greater than $1200, the casino is required to issue a 1099 which means IRS will know about it upfront.

I'm no tax expert so this is all a guess.

Sam

[/ QUOTE ]
Bingo!

[SamJack]

Search the forum for taxes, you will find a ton of threads on it. Most of them re-hashing the same issues.

Sam

[benfranklin]

I'm not a tax attorney, but I sometimes play like one on the Internet. As mentioned earlier, any money won gambling is legally taxable. Gambling losses are tax deductable up to, but not exceeding, the amount of your reported gambling winnings. And you can bet losses would have to be documented.

Casinos, horse tracks, etc, are required to get positive ID and report winnings over a certain amount to the IRS. Internet casinos are all located outside of the US, so that neither prohibitions against internet gambling nor IRS reporting requirement do apply to them.

Therefore, paying taxes on internet gambling winnings is on the honor system. I haven't heard of the IRS trying to go after anyone for nonpayment. I'm sure if it happened, some one would post here or on RGP about it. If I were winning, and adverse to taking on a governmental partner, I'd take care not to be having very large checks from strange places coming into my bank account.

[MicroBob]

do a search on taxes and find a lot of good info on this topic.
also, you'll probably see where i have recommened several times to get 'Gamblers Guide to Taxes' by Walter Lewis.
it does not specifically cover online gambling....but if your tax-ignorant like me it should be helpful.

i got my copy at a barnes & noble.


yes, every penny you make at a b&M casino is taxable and technically is supposed to be reported (and you are supposed to keep your own records).
the irs seems to realize this is not entirely realistic but they set a cut-off at $1200 on slots where the casinos have to report the win.

someone reported that some slots will be set to pay-out $1199 to avoid this pesky little situation.

[William]

yes, you have asked THE question for the millionth time, and no it seems you don't know how to make a search.

Boring [img]/images/graemlins/frown.gif[/img]