Tax question

[nelly99]

I only made 5000 last year from poker, do I still have to file or is that too low to worry about. I have an other job in the summer but that is taken care as far as taxes go. Thanks for the help

[squiffy]

According to this website, the law is that you don't need to file a tax return if you are single and your total gross income for 2006 was less than $8,450.

So if the gross income from your job and the poker winnings puts you over that limit, technically you have to file.

But I suppose the IRS doesn't know about your poker winnings. So it would be hard for them to catch you, if you didn't declare your poker winnings, particularly because the amount is small.

I suppose it would be much riskier if you earned $100,000 from playing poker, spend money like there was no tomorrow, and had no other visible means of support.

You can also verify this income limit in the 2006 federal tax instruction booklet. I could not find anything on the official IRS website. But the info must be on there somewhere if you do a proper search.

www.irs.gov

http://www.instanttaxservice.com/tax_topic1.htm

[bav]

You had a job but you say "that is taken care as far as taxes go." no... it's not. If you have a job the employer will do withholding but that is just an estimate and you are still supposed to file a tax return. The results of filling out the 1040 (or 1040A or 1040EZ or whatever) determine whether you owe more taxes or will get a refund. And yes, you are legally required to include gambling income when you do that.

Go snag a 1040 booklet and forms and go through the motions and see what results. You may be happy you did.