Do you have to report your gambling winnings even if you ended up losing overall.?
Question by gambler: Do you have to report your gambling winnings even if you ended up losing overall.?
Say you win 10k gambling in one session early in the year. Then you lose that same amount (and more) over the entire year. Do you still have to report it as a 10k win, then deduct the loses or is it irrelevant at that point because I never won money over the duration of the year?
Answer by LegFuJohnson
Unless you are a professional gambler, then yes, technically you report the winnings in your income, then deduct the losses with your deductions. Depending on how your return is structured, you might end up paying taxes on it.
But if you have enough money to be winning and losing that much, I’d hope you are asking your tax guy, and not simply a Yahoo board.
If the IRS received a 1099 for gambling winnings, then that needs to be included on the front of your 1040.
If you then have deductions for losses (never more than what you declared in income on the front), they need to be entered on Schedule A.
yes standard deal is you report all – winnings – then report all losses (with proof) its NOT a straight wash if you have a 10k win and a 10k loss but the amount you pay is not a whole lot
where did you win this 10k – if you won from a bookie and it was all cash under the table I dont condone lying to the IRS – but if theres no paper trail – that amount alone probably wont get you caught. If its for much more than that you better report it as the penalty is alot worse than the small amount you pay on 10k anyways
if you won it in a casino there HAS to be some form of paper trail – either a IRS form because you had a cash transaction over 10k in a 24 hour period or they may have already taken withholding taxes out up front, it depends on the winnings.
its your responsibility to report it – your problem is that you can only report losses UP to your winnings – so if you win 10 and lost 13 you cant report more than 10 in losses as the IRS is not going to give you a refund because you lost money gambling
Good Luck!
“Always report how much you win separate from how much you lose. You especially need to be careful if you’re funneling money into a checking account. Make sure you don’t reporting less than the amount of your deposits.” Any winnings online and in brick and mortar casinos should be reported. If a casino has given you a tax form to fill out, know that they will be reporting your earnings to the Internal Revenue Service (IRS).
You must be kidding.
I am not a professional one.