Gambling Income and Taxes...

[Shroomy]

I just started this post in response to another post about the issue to keep the other tangents out.

You are responsible for taxes on any gambling winnings!

Typically you will be required to fill out a Form W-2G

BUT the main point of the post is that you can also offset these winnings with expenses and gambling loses from the same year, but you are going to need to keep receipts and preferably a log on your winnings and loses.

AND this does not just include poker, it can be lotto, horse or sports betts etc ..

You will not be required to send in the receipts unless you are audited, but you have to keep them for 7 years (it may be 5 but keep them for 7 because im not 100% sure)

So I would never sugest that you walk around the sports betting area picking up betting slips and use them to offset your winnings and save you 30% of your winnings, because that would just be wrong to cheat the IRS.

Oh and also, if you win big in the begining of the year, you will be expected to make estimated payments quarterly and not just at the end of the year. If you do that they may fine you.

Sorry but I really don't know the dollar amout cut off points for the extimated taxes, or the the amount that makes you fill out the W2, its changed since I had to worry about it, perhaps someone else here knows.