Yes you do have to pay taxes on winnings. Technically it is net hobby income unless you decide it is a job in which case the whole self-employment thing comes in.
And BTW, technically the IRS DOES expect you to pay taxes on profit from selling Crack. If they could prove how much you made they would throw you away for it. As a matter of fact look at how they took down Al Capone.. for TAX EVASION!
The morale of the story is if you are making good money betting on sports, keep EXCELLENT records and be very aware of what is traceable and what isn't (ie cash bets at sports books without a players card vs checks from an online site)
And BTW, technically the IRS DOES expect you to pay taxes on profit from selling Crack. If they could prove how much you made they would throw you away for it. As a matter of fact look at how they took down Al Capone.. for TAX EVASION!
The morale of the story is if you are making good money betting on sports, keep EXCELLENT records and be very aware of what is traceable and what isn't (ie cash bets at sports books without a players card vs checks from an online site)
Technically you are required to report every CENT of income from ANY source. If you stop and give a hitchhiker a ride and he gives you $5 as a thank you that is income and you have to report it.
Now realistically the IRS isn't going to care about the recreational gambler who wins $500 one year and loses $300 the next. I believe that any deposit of over $5,000 dollars at a bank is reported to the IRS, (someone else may have the exact numbers)
Keep your checks from the book small so there is not much suspicion or even better keep it in case in some way.
Or if you really want to, list it as a hobby that earns income and claim every cent. Unfortunately losing money in a hobby is not a deduction.
Now realistically the IRS isn't going to care about the recreational gambler who wins $500 one year and loses $300 the next. I believe that any deposit of over $5,000 dollars at a bank is reported to the IRS, (someone else may have the exact numbers)
Keep your checks from the book small so there is not much suspicion or even better keep it in case in some way.
Or if you really want to, list it as a hobby that earns income and claim every cent. Unfortunately losing money in a hobby is not a deduction.
i once gave a female hitcher a ride, and she gave me a blowjob
now i normally pay 50-75 per blowjob, does this mean the blowjob has value of 50-75 of received income that the hitcher gave me?
If thats the case, i owe my ex gf a ton of money, and we currently are in a legal battle over some common property and custody of our animals......i sure hope her lawyer doesnt pull the whole "hitcher-bj, claimable income" reflective property in court......
