If I won $1,000 on a slingo drawing (online gaming site) how much would the IRS take and where/how do you report it? Would it make a difference if it were only $200?
2007-09-26 17:40:35 · 8 answers · asked by wendyladi98 1 in Business & Finance ➔ Taxes ➔ United States
I am not sure this is considered gambling. I don't put any money out to win. They have a jackpot drawing and give away $1,000 a month. They also have one for $200 a week. I was just curious on average what the gov't would take. I almost wouldn't have to file otherwise...I make on average $6,000 a year working part time/stay at home mom.
2007-09-26 18:03:54 · update #1
It's taxed as ordinary income. You list it on line 21 of your Form 1040 tax return. If you file 1040-A or EZ, it goes on the "Other Income" line. How much the IRS will take will depend upon your marginal tax rate. If you're in a 25% bracket, a $1,000 win will cost you $250 in taxes and a $200 win will cost you $50.
2007-09-26 23:15:45 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The IRS considers it gambling, whether you do or not, so yes you'd have to report it. But if you're a single mom and your total income is around $6000, even winning the $1000 prize would still keep you below the filing limit if your job takes out social security and medicare. If it doesn't, you are WAY past the limit of $399 already, whether you win anything or not.
If you are married, you are already above the limit where you are required to file, whether you file a joint return or file separately.
If you file a return for any reason, whether you are required to or not, you claim the winnings as income - that's whether it's $1000 or $200. It's not earned income though, so would not count towards EIC.
2007-09-26 18:08:32 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Interesting for several reasons....
Not sure what "slingo" is, but all gambling winnings are taxable income and can be offset by gambling losses.
You report it as gambling winnings and you may have even received an official 1099 misc form. (doubtful if online)
It is interesting because, if you are in the USA, all online gambling has been deemed illegal. So, even though you can do it, you have broken the law. (not saying I agree or disagree with the law)
Since it was hard to crack down on all the gambling sites outside of the USA, they inacted a law making it a crime to collect or pay for online gambling via electonic funds.
Good luck.
2007-09-26 17:54:18 · answer #3 · answered by justhefacts 3 · 0⤊ 0⤋
Does this site have your social security number? If so, then I would report it... If they don't, then the govt will not know about it... And if I were in your shoes, I would not report it.
Next question.... Have you actually got the cash in hand? If not, then don't report anything until you actually have it. Winning a drawing for cash on a online gaming site without wagering any money sounds very fishy to me. I could be wrong.
3rd question... Is this company based in the US? If not, chances are it will never be reported to the IRS.
If you get any kind of 1099 or W-2 from this company.... You have to report it, because the IRS will know about it.
2007-09-27 06:16:35 · answer #4 · answered by Anonymous · 0⤊ 1⤋
If you get the money in the form of a check or some other form, you will get a special Form W-2G. It is reportable as ordinary income. If you use something like turbo tax, it will direct you as to where to report it. If you get a special Form W-2G you must report it. Even if it's 200, as there is no lower limit on reporting a special Form W-2G.
IF you want trouble, don't report it.
2007-09-26 18:24:43 · answer #5 · answered by Steveo 5 · 0⤊ 0⤋
Winnings are included in income and taxed at regular rates. You can take an itemized deduction for losses up to the amount of your winnings.
2007-09-26 17:43:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you didn't wager anything, it is not considered gambling. It is considered a prize.
It is still 100% taxable on Line 21 but you can not deduct your loses against it.
2007-09-27 01:54:23 · answer #7 · answered by Wayne Z 7 · 0⤊ 0⤋
warning this could be a scam!!!
2007-09-26 17:48:22 · answer #8 · answered by computer_wiz_12 1 · 0⤊ 0⤋