Give us ur records :)Previous TopicNext Topic

Yes, but if you only made $50 in a year you would fall well below the minimum required to file a return

The following is an excerpt from the IRS site. The link is below.

The excerpt can be found at the very bottom of the page.

For example, both a $500 cash prize and the fair market value of a newrange won in a baking contest must be reported as other income on Form1040, Line 21.

http://www.irs.gov/newsroom/article/0,,id=175963,00.html

That may be true, however it falls under "Other income", and has to be reported.

Considering that 90 percent of people who play the lottery have jobs, they most certainly fall in the category of making enough where they have to report their job's income, thus having to report a win anyways. The total would exceed that line.

Gambling winnings

Gambling winnings are fully taxable and must be reported on Form 1040.

Gambling income includes, among other things, winnings fromlotteries, raffles, horse races, poker tournaments and casinos. Itincludes cash winnings as well as the fair market value of prizes suchas cars and trips.

One of the reasons they state the 599 or lower rule is because they have to draw the line somewhere. They don't have the man power to investigate every person so they make reasonable sacrafices.

Yea, Iwish I had that problem,

wining more than $600

Hey but you never know I got my numbers in for the mega millions tonight   

Yup, a Mega win will be nice. I definitely don't mind paying the tax on that one...lol

The 5,000 rule you mentioned earlier applies to certain gambling facilities. Let's say you won 4 grand at the horse tracks, I believe you have the option to pay the taxes right there, or opt for the full 4 grand and they will give you some paperwork for their records and send a copy to the IRS. Any win over 5 grand, and they automatically issue a W-whatever...lol W-2? I forget.

I think what happened is ....Say my example......

Won $1500.....Go to collect....State takes their share.....It's up to indivdual to pay the IRS with a certain form.  When I won $900 and $600 earlier this year, my accountant stated that if you can show you spent money to get it, then that is included as an investment to make that money.  So.....I keep all my losers...

That's what he told me, but if I get lucky again, I'm going to pay Mr. IRS what meets calculations....I mean he's spending what the country doesn't have anyway....so maybe he'll be okay....After divorce and child custody for years, I ended up owing them and thought it would never get paid back.   I don't want that in my life anymore.

<snip>

Todd  yes u were right its $3k       not 3000k   i wish do :)

Joker i get what u saying,but any winnings under $600  you do not have to mention on your taxes at least in florida 100% sure on that,i hit straight on 6 tickets and i cash them in 3 different Publix's (its a store)  and i did not to trying to cheat anybody but simply becouse gas station dont carry not even $500.
Back to tax thing  when i win sometime on the race track (horses) and its under $600  i never pay tax for that and at the track up here there is an IRS  window and i have spoken with the gentelmen and he explained to me how it works under $600 its TAX FREE according to the Law atleast in FL.



Guys I did not make this tread to show off or anything like that, so if this thread is so anoing to everyone TODD pleas close it.
Have a nice day to all   and keep winning.

one of the forms I am aware of at one of Pa's racetracks uses a 1099 to be filed. The racetrack has a regulation that they are obligated to retain the 25% taxation and file it with your information( if the win is 2500 or above). At the end of each year you receive a win/loss sheet if you want and then when filing tax it can be given back as a refund (if you calculated correctly and had enough write offs...). I personally won 2500$ at the racetrack and they took the difference there and then. I didnt care....better they get it while I had it.  I did ask if I file quarterly if they could do a win/loss then. They said they can and would if so desired.

State Pick games I won $600 once and 1K with a group pool. ALso on an instant -hit for $500 ....None of these prizes required forms. Overtime I am sure I have lost more then I gained.....its the nature of the beast....

I won 2,000 once years ago and I cashed them in Publix also without paying taxes. But that doesn't mean that you don't have to report it as income. I already showed in this thread a link to the IRS page where it says all gambling wins are to be reported and are taxable.

If you choose to believe what you want to believe then that's your right.

this was an interesting Read for sure..I didnt know the banking transactions were reported to the IRS or the FBI...I will remember that one for sure...hahaha

I beleive people have the right to incorrectly twist the verbage and FULL content in which the IRS writes rules. Section 4 can say one thing then refer you over to section 17  that says, nope if you fall under this circumstance then write zero in line 4. Sorry but the IRS is notarious for sending folks on the wildest goose chases. Just as you can find a particular area that says one thing, three pages later it can correct itself and tell you it doesnt qualify based on certain critereas....

And yes if the IRS is reading this....I didnt report a two dollar instant win ticket back in 1992...but then again, the Lottery didnt report the ten dollars I gave them and LOST. I should send them a 1099 form and tax the state for gaining a profit from my funds :)

I find no obscurity with the term "All gambling wins must be reported and is taxable". This is in the link I provided.

If by chance you receive an audit, just tell them you didn't report the winnings because you believed the codes were just too confusing.....lol

Good luck !