Gambling Winnings
Everyone loves it when the month of March rolls around. Not only does it mean that summer is right around the corner but it also means that March Madness is upon us once again. That’s right, the NCAA basketball tournament, that has millions of United States residents filling out brackets and entering into office pools for a small price. Some pools cost $100 to enter while others cost a measly $10 or $20 to enter. The more you spend to enter, the more you can win if your bracket succeeds. These winnings, and any winnings you might accrue over the course of a year are considered taxable income, which means that they must be reported to the IRS come tax time in April.
It does not matter if you are the most casual gambler, the best tip out there today is to keep a log of all your gambling winnings and losses to make it easier on yourself when tax season rolls around in April. Many gambling outlets, such as race tracks and casinos, are required by law to report certain winnings thresholds. Those thresholds range from $1,200 to $5,000, which means that someone in the IRS will know that you won a substantial amount of money, so there is no point in trying to hide it from them. How will they know? Because when you win, the outlet you are gambling at will ask for your Social Security Number in order to report the winnings and then hand you a W-2G form, which documents the payout. Be smart, avoid an audit by reporting your winnings from poker or any other gambling endeavor you might be involved in at casinos or race tracks.
Now, you can decline to provide the house with your Social Security Number, but the house will then keep 28 percent of your winnings for federal taxes. Sometimes, the house will deduce the standard 25 percent federal income tax on the spot, once you provide them with your information. You can also ask the house to deduct your state income tax too, which will vary depending on the state where you reside. Not all winnings need to be reported, such as the $100 you won playing poker at a casino but it can be reported on your Form-1040 under the “other income” category. You can also report your gambling losses, but it can be no more than the amount you won for the entire year.
Popularity: 6% [?]
Facebook
Twitter
StumbleUpon
It’s such a joke to have to report small winnings.
Buy:100% Pure Okinawan Coral Calcium.Synthroid.Zovirax.Retin-A.Zyban.Petcam (Metacam) Oral Suspension.Accutane.Prednisolone.Arimidex.Nexium.Mega Hoodia.Actos.Human Growth Hormone.Lumigan.Prevacid.Valtrex….