Tax question- For every 10k you win at gambling what do you pay back in taxes?

Iceman · Feb 15, 2007

How does this work?

Do they just count your winnings and the go from there?

Is it your net profit than tax it?

Just trying to get a general idea how much one would pay for each 10k won and is it taxed on 10k won or 10k profit won, as I have heard it both ways?

Does someone have any idea how this is figured out?

lapdance · Feb 15, 2007

Why Would You Tell Them? How Would They Know?

Iceman · Feb 15, 2007

lapdance said:
Why Would You Tell Them? How Would They Know?

:monsters- what?

WVU · Feb 15, 2007

winnings = income. There are several methods that can be used to determine winnings.

Iceman · Feb 15, 2007

WVU said:
winnings = income. There are several methods that can be used to determine winnings.

On an average if someone won 10k how much does he pay? Any estimate?

cutacrossshorty · Feb 15, 2007

Iceman said:
:monsters- what?

Unless you signed a 1099-G, why report it?

Brooklynbomber · Feb 15, 2007

Depends on your tax bracket, but assuming the 10K was net winnings between $1000 to $3000.

I agree wit others no reason to report shit, assuming it is not your sole source of income. Better not run it through your bank though in case of an audit.

Iceman · Feb 15, 2007

kind of heard to hide the money I have been winning lately. Just trying to do the right thing.

mj23 · Feb 15, 2007

People that dealt with Neteller will be a little worried now!!

Timetopay · Feb 15, 2007

Dude you can easily hide it....

WVU · Feb 15, 2007

if you are at a 28% tax rate then $2800

33% then $3300

mj23 · Feb 15, 2007

Can you imagine how hard it is to win and then you have to pay 33% on your winnings people better get a new hobby because this is a losing propisition !!

cutacrossshorty · Feb 15, 2007

Something to consider before filing:

If next year or some year in the future you get your ass kicked, the IRS doesn't allow you to deduct those losses. My personal opinion is that you are out of your mind to declare that income.

Brooklynbomber · Feb 15, 2007

mj 23 said:
Can you imagine how hard it is to win and then you have to pay 33% on your winnings people better get a new hobby because this is a losing propisition !!

exactly....would not have a problem paying taxes on it if I could deduct my NET losses in a year...

funny you can deduct NET stock market losses though...just another form of gambling. Oh that's right that form is accepted by society:hump:

Journeyman · Feb 15, 2007

cut across shorty said:
Something to consider before filing:

If next year or some year in the future you get your ass kicked, the IRS doesn't allow you to deduct those losses. My personal opinion is that you are out of your mind to declare that income.

Yeah and if you live in Canada I believe there are no taxes on gambling winnings.

Win 10K won year pay 2,800
Lose 10K the following year pay nothing

net -2800 :bigfinger

mj23 · Feb 15, 2007

People that play slots have got to be nuts because they give you a 1099 right there can you imagine if they did that at the table games!!:bigfinger

bilbal · Feb 15, 2007

Iceman said:
How does this work?

Do they just count your winnings and the go from there?

Is it your net profit than tax it?

Just trying to get a general idea how much one would pay for each 10k won and is it taxed on 10k won or 10k profit won, as I have heard it both ways?

Does someone have any idea how this is figured out?

It's based on net profit, you add your total winnings as income, deduct your total losses as deductions and taxes are due on any remainder. It depends on your filing status, your other deductions, etc, but for every $10,000 in gambling winnings figure you'll pay $1,200 in taxes on it.

bilbal · Feb 15, 2007

WVU said:
if you are at a 28% tax rate then $2800

33% then $3300

Those are rates you pay on the last dollar of gross income you earn in each bracket. What you actually pay in relation to your income is much lower. You can be in a 33% tax bracket but only pay 23% of your income in taxes, it depends on your filing status and deductions.

fightclub34 · Feb 15, 2007

mj 23 said:
People that play slots have got to be nuts because they give you a 1099 right there can you imagine if they did that at the table games!!:bigfinger

different with casinos though you can get slips for all your losing on table games and shit liike that and right that off as losses when you have that big win

Redneckman · Feb 15, 2007

The IRS rules on gambling say for the casual gambler to report every gross dollar of income, and deduct every gross dollar of expenses as a miscellaneous itemized deduction. This is problematic for the casual middle and arbitrage player for sure, as you might have several hundred thousand dollars of gross income, and several hundred thousand dollars of itemized deductions, which for sure cannot help your chances of avoiding an audit. So therefore I net my winnings and claim it as other income on the front of form 1040. Now if one considers themself a professional gambler, it goes on a business schedule, where net winnings are reported on Schedule C, with all gambling related expenses as a business expense. Problem with that is that net profit is subject to social security taxes, which adds an addition 15% of social security tax to the taxes that you owe.