2007-04-10 04:15:54 · 9 answers · asked by rainman_1999_76 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Gambling winnings are fully taxable and must be reported on your 1040. Gambling losses are deductible only if you itemize deductions, and you can only claim losses up to the amount of your gambling winnings.
Check the below IRS links for details. :-)
2007-04-10 05:27:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you received a Form 1099 or other statement from the site you subscribe to, you will have to report the income. As to the legalities, I'm not sure. You'd think that if it was illegal the government would shut it down.
I do know that if the winnings come from casinos, you have to report the winnings on the 1040, but you can count the losses (up to the amount of winnings) if you itemize your deductions on Schedule A.
It may be best, since you're almost down to the wire on the filing deadline, to check with the web site you registered with to see about this. They should have a FAQ link on the home page, and there is a terms of service agreement for the site which may have some valuable information on there.
I believe I'd list it as gambling winnings and enter it as "Other Income" on the front page of the 1040. It shouldn't hurt you, tax-wise, unless you've won a huge amount. Better safe than sorry, with the IRS.
2007-04-10 04:28:05 · answer #2 · answered by Peggy K 5 · 0⤊ 0⤋
I'd think that if you won anything, you'd receive a 1099 from the place that actually pays you,, so you would have to report that amount. If you itemize your deductions you can claim any loss from gambling up to the amount you win. That would all be different if you are a professional gambler,, do only that for a living,,
2007-04-10 04:28:38 · answer #3 · answered by Jo Blo 6 · 0⤊ 0⤋
Legally, yes you do. You report wins, then if you itemize you can deduct losses up to the amount of your reported winnings for that year.
2007-04-10 06:33:03 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
All income from winning of lotteries or horse race or other money winnning shows are taxable. In India upto Rs.5000/- tax free. For other countries no idea.
You have to reveal this in your returns to Tax authorities.
2007-04-10 04:20:17 · answer #5 · answered by Srisri 3 · 0⤊ 0⤋
If your wins exceed your losses, you have to report it as income.
2007-04-10 04:20:57 · answer #6 · answered by dewkisses02 4 · 0⤊ 0⤋
Legally you're supposed to pay taxes on it. However if there are no records.................
2007-04-10 07:15:29 · answer #7 · answered by MajorTom © 6 · 0⤊ 0⤋
Since it's illegal, that doesn't seem wise.
2007-04-10 04:18:29 · answer #8 · answered by leaptad 6 · 0⤊ 1⤋
no idea
2007-04-13 14:45:55 · answer #9 · answered by govtagent_2001 4 · 0⤊ 1⤋