To File Or Not To File....Plz Help

DeadlyGambit · #1 03-19-2007, 08:27 PM

I know this question has probably been posted a thousand times, but I've used the search engine and still can't find a straight answer.

I've probably withdrew around $2000 from neteller this year, maybe less. Do I need to pay taxes on this money?

frommagio · #2 03-19-2007, 08:33 PM

[ QUOTE ]
I know this question has probably been posted a thousand times, but I've used the search engine and still can't find a straight answer.

I've probably withdrew around $2000 from neteller this year, maybe less. Do I need to pay taxes on this money?

[/ QUOTE ]
Not if you deposited $5000.

DeadlyGambit · #3 03-19-2007, 08:48 PM

Not if I've deposited a TOTAL of $5k into neteller throughout the year, like when switching from site to site?
I've never deposited a lump sum of $5k into neteller, if that's what you mean.

DeadlyGambit · #4 03-19-2007, 09:54 PM

Anyone care to clarify frommagio's response?

Bob Moss · #5 03-19-2007, 10:09 PM

Frommagio is just pointing out that you don't have to pay taxes if you lost money last year. (which isn't necessarily true). But yes, according to the law, you must pay taxes on your $2000.

poorolrich · #6 03-19-2007, 10:12 PM

It looks like he is saying that if you have deposited(lost) more than the $2000 dollars then you don't have to file. Not right. You would have to declare your winnings and declare your losses(no more than your winnings). If you had $2000 in winnings and $2000 in losses you wouldn't be liable for any taxes but you have to file to be an honest citizen. Although, if you cannot itemize your deductions then you are out of luck. Also, if you live in a State that does not allow you to deduct gambling losses then you are out of luck as far as state taxes go. I know many 2+2ers will disagree but if you have ABSOLUTELY no reason to think you will be audited I wouldn't worry about claiming the $2000 as income.

LotteryOrPoker · #7 03-20-2007, 03:06 AM

If you made less than 50k last year there are a number of sites linked from the IRS web site with free filing services available to you. Almost everyone of those services will ask if you had any gambling winnings last year. If you are filing on any other earnings that might be an easy way to include what you need to include.

tagtastic · #8 03-20-2007, 03:21 AM

Simple answer - no. The IRS could care less about your $2000.

Technical answer - yes. If you feel guilty after jaywalking, by all means, file in triplicate.

Spartan1983 · #9 03-20-2007, 10:17 AM

It's not about how much you deposit/withdrawel from neteller. It's about claiming your winnings from playing. As has been discussed and written in many posts, you put your winnings on your tax form as income and itemize your losses.

ncboiler · #10 03-20-2007, 10:22 AM

[ QUOTE ]
[ QUOTE ]
I know this question has probably been posted a thousand times, but I've used the search engine and still can't find a straight answer.

I've probably withdrew around $2000 from neteller this year, maybe less. Do I need to pay taxes on this money?

[/ QUOTE ]
Not if you deposited $5000.

[/ QUOTE ]

I'm pretty sure this is not true. Typically you can't net your wins and looses. Winnings are income and losses are a deduction. If you file as a professional you can net your wins and losses. At least that's the way I understand it.