filing taxes...is it ok to just put in one line?

[Kenny Z]

let's say I made 300 playing poker online and I cashed out in October. Can I just state an income of 300 with no losses? Or do I still need to provide a list of every single day? What if I don't do that?

And....
I heard a story from a friend. true or not who knows. he tells me some friend of his got audited who filed in the same manner. the audit had nothing to do with his gambling winnings, which were in 4 figures, but had to do with some other stuff. they didn't bat an eye on the 4 figure income even though it was stated as online poker winnings. so that's why i am thinking of doing the same. but did that guy just get lucky?

[Niediam]

You are allowed to just 'put in one line' but that number has to be the sum all all your winning sessions.

[JimGil]

If it was only $300 - just leave it off. Even if you are audited - I think there is a minimum dollar amount won you need to hit to have to claim it.

[PiedPiper]

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You are allowed to just 'put in one line' but that number has to be the sum all all your winning sessions.

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Which is ridiculous and which is why people don't report and "cheat" on their taxes. If the IRS would wake up and see that it is such a ridiculous rule and allow people to simply put down their net winnings (as professionals are allowed to do), many more people would report it.

[Easy E]

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If it was only $300 - just leave it off. Even if you are audited - I think there is a minimum dollar amount won you need to hit to have to claim it.

[/ QUOTE ]

Wrong, if you're talking about the IRS

[Easy E]

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You are allowed to just 'put in one line' but that number has to be the sum all all your winning sessions.

[/ QUOTE ]

This is a bit misleading. Assuming you are not able to file as a professional gambler, you enter all of your winning sessions under miscellaneous income.

You enter all of your losing sessions under miscell losses. These numbers are a single "line" on your tax return, but you'd better have much more detailed records that meet IRS criteria to back them up.

Your losses can't be greater than your winning amounts, if you are an amateur gambler.

[Easy E]

[ QUOTE ]
[ QUOTE ]
You are allowed to just 'put in one line' but that number has to be the sum all all your winning sessions.

[/ QUOTE ]
Which is ridiculous and which is why people don't report and "cheat" on their taxes. If the IRS would wake up and see that it is such a ridiculous rule and allow people to simply put down their net winnings (as professionals are allowed to do), many more people would report it.

[/ QUOTE ]

First off, you're wrong about it increasing compliance in my opinion.

Second, I think professionals file paperwork much like a self-employed business would. They don't just put down their net winnings.

Third, without extensive record keeping, what's to prevent anyone from making up "losses" and covering all of their wins?

[Kenny Z]

I was told it was ok to put it in just one line if it coincides with the amount of dollars I deposit into my bank account.

So if I put in 300 into my bank account through gambling, I better have filed a misc. income of 300 in my tax return.

By the way, the 300 is just a number I made up. The actual number is much bigger. So that is why it is important to me.

And my friend's friend who got audited told him who told me that when he got audited they did not go through his bank account records. They did not need a justification for the winning amounts that he reported. The winning amount reported was in 6 figures. It was the losing amount that was reported that the auditors had a problem with. And wanted him to prove he actually lost that amount. But didn't care to see any proof that he won the amount he claimed. I don't get it. Is the IRS auditor get credit for screwing the auditees as much as possible?

[Easy E]

[ QUOTE ]
I was told it was ok to put it in just one line if it coincides with the amount of dollars I deposit into my bank account.

So if I put in 300 into my bank account through gambling, I better have filed a misc. income of 300 in my tax return.

[/ QUOTE ]

I think the IRS will look for a resulting income figure that matches your bank statement, not just the miscellaneous income amount. That's why your friend is having fun in audit hell.

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told me that when he got audited they did not go through his bank account records. They did not need a justification for the winning amounts that he reported. The winning amount reported was in 6 figures. It was the losing amount that was reported that the auditors had a problem with. And wanted him to prove he actually lost that amount. But didn't care to see any proof that he won the amount he claimed. I don't get it. Is the IRS auditor get credit for screwing the auditees as much as possible?

[/ QUOTE ]

As long as the IRS is getting that 6-figure miscellaneous income, can you see why they don't care if he justifies it? And why they are focused on the corresponding losses?

Now, if they suspect him are reporting far less of the session winnings than he has, you can be sure that they will climb up his ass with a probe and set up camp.

The IRS can get the bank records to prove net income on their own- it's what you deposited. Proving that you lost what you say you did, to get to that figure, is a primary goal for the IRS for obvious reasons.

[PiedPiper]

[ QUOTE ]

First off, you're wrong about it increasing compliance in my opinion.

Second, I think professionals file paperwork much like a self-employed business would. They don't just put down their net winnings.

Third, without extensive record keeping, what's to prevent anyone from making up "losses" and covering all of their wins?

[/ QUOTE ]

Easy there killer! This is just a message board and isn't legal advice. Anyone with real questions seeking real answers needs to see someone who does this for a living if it is a significant amount of money and a real concern.

1. That's debateable, but nothing to get upset over.
2. Sure, they file paperwork and have special forms, but in the end it amounts to something that is very close their net winnings that goes in rather than the sum of all their winning sessions.
3. I agree 100% with you here and mentioned this in another thread independently and before you brought this up.

[aargh57]

[ QUOTE ]
[ QUOTE ]
You are allowed to just 'put in one line' but that number has to be the sum all all your winning sessions.

[/ QUOTE ]

This is a bit misleading. Assuming you are not able to file as a professional gambler, you enter all of your winning sessions under miscellaneous income.

You enter all of your losing sessions under miscell losses. These numbers are a single "line" on your tax return, but you'd better have much more detailed records that meet IRS criteria to back them up.



[/ QUOTE ]

Do I need to state these records on the form somewhere or are you talking about just keeping records in case of an audit. What I currently do is keep a daily log of wins and losses and then have a sheet with every site with wins/losses. I plan on putting all my winnings dosn as othe income and losses down as misc. losses. I plan to keep my more detailed records just in case they want to see them. Does this sound like a good plan?

[Guthrie]

Good plan. You need to keep the records, and have them available if the IRS wants to see them. You don't include them with your tax return, just the totals. Chances are they'll never ask, but if they do, you have to produce them, and they better not look like you literally produced them the night before the audit.

[damaniac]

So to sum up for my own situation, just total my wins and losses, recording each to get the net...and only submit that, but have the sessions and whatnot recorded for use should I get audited. No need to submit my session records correct?

[bobbyi]

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Do I need to state these records on the form somewhere or are you talking about just keeping records in case of an audit.

[/ QUOTE ]
In case of an audit. It's the same with receipts and so forth. You need to save all of this in case you ever need it, but you don't send it in with your tax forms. You can be audited going back several years, so don't think that just because you haven't heard anything from the IRS a few months after you submit your taxes that you are safe to throw the records away.