2007-03-26 18:31:58 · 7 answers · asked by Teacher 4 in Business & Finance ➔ Taxes ➔ United States
I meant to say how much you won? (not mush)
Ex: If I would have won $100,000 playing poker, but lost $80,000 of it the next day. How do I claim it?
2007-03-26 18:37:35 · update #1
With California indian casinos, I believe the limit is $10,000. If you win more than that, they will report it to the IRS and you will have to fill out tax forms and decide whether or not you want them to take the money out then or if you would rather pay the taxes later. Now, regarding losses it gets a little tricky. I'm not sure whether or not you can claim gambling losses against your taxes. For example, winning may be considered income, but I doubt gambling itself is a business expense, so loosing could be considered and entertainment expense. If you won $100,000 and then lost $80,000 the next week, you may still be required to pay the taxes on the $100K. The best thing to do would be to call a casino and ask them what the tax law is. They should have someone who could explain it exactly to you. Word of advice... if you win $100,000, don't feel bad and give it back to the casino.
2007-03-26 18:43:08 · answer #1 · answered by Wildernessguy 4 · 1⤊ 1⤋
They'll issue a 1099 that shows the amount of your winnings. You then take that in with your W-2's when you have your taxes done.
Gambling losses can be claimed if you itemize, but only up to the amount of the winnings. In other words, you can't create a loss on the tax form from gambling. You'd have to have a receipt or statement from the casino, or save lotto tickets, etc., to be able to maintain a paper trail for the losses.
2007-03-26 18:42:15 · answer #2 · answered by Anonymous · 2⤊ 0⤋
In theory, all gambling winnings are taxable income. Losses can be taken against gambling winnings only (i.e. you cannot deduct against ordinary income). At a certain threshold (i.e. hit the a jackpot) the casinos will report your winnings to the IRS so you can't get by that requirement. I don't know what kind of documentation you need to prove your losses.
2007-03-26 18:36:58 · answer #3 · answered by gls_merch 5 · 1⤊ 0⤋
I am not sure what the limit is now I know that 5 years ago I won 5000 and they asked me if I wanted them to take out the taxes or if I wanted to pay them myself. If I wanted to pay myself I had to fill out some paper work and give them a copy of my id.
2007-03-26 18:36:49 · answer #4 · answered by calired67 4 · 1⤊ 0⤋
U pay the taxes on your winnings, the casino pays them on theirs (aka ur loses)
One important thing is that if u r not an American citizen, u can get back the taxes that u payed, at least a portion.
But my advise is: If u win 100,000 take the money and run don't give it back to the casino lol.
2007-03-26 18:47:49 · answer #5 · answered by mikecujosdad 2 · 0⤊ 2⤋
They pay the tax on your loss and you pay a tax on your winnings, they will give you a slip to fill out and you file it with your taxes.. BUT!!!! If you win a nice ammount, find a track junkie and have him sing for the winnings, give him 50 or 100 bucks nad you are in the clear, just make sure you are not giving him more than the tax ou would pay.... you can ask before you redeem.... Yep, uncle sam wants his, got to keep the killing going...
2007-03-26 18:36:06 · answer #6 · answered by Anonymous · 0⤊ 3⤋
you have to have a tax number with the IRS and be listed as "professional gambler" as your occupation.
2007-03-26 18:39:52 · answer #7 · answered by Anonymous · 0⤊ 4⤋