Gambling winnings. Are they taxed differently than normal income?

[dxkj]

If someone makes 30k a year working at a normal job, and 10k in gambling winnings, do they get taxed more/less/same as someone who works and makes 40k a year at a normal job. Assuming everything is same (deductions, married or not, etc)


The basic question is, do gambling winnings get taxed more than normal income. (thinking vegas type places, not so much the lottery)

 

[GroundZero]

it is earnings and goes tward your earnings for the year.

 

[Jeraden]

It's treated the same as the rest of your income when you put it on your tax return at the end of the year. If its winnings from a place that withholds taxes, they'd likely withhold at a higher rate than normal, but you'd get the difference back when you file.

 

[dquan97]

I believe winnings are taxed the same as ordinary income, though you can't deduct your losses, if losses > winnings

 

[CPA]

tsk, tsk, this question belongs in the tax thread up top.

 

[GoodRevrnd]

How much money do you have to win before you report it? How much money can you win and get away without reporting it? How much money do you have to win before the casino reports your winnings?

<--- Never been to Vegas, going next month.

 

[dxkj]

Originally posted by: CPA
tsk, tsk, this question belongs in the tax thread up top.

Sorry I havnt won anything for this years taxes , but I'm up $5 in internet poker for next years taxes so I was curious

 

[CPA]

Originally posted by: dxkj

Originally posted by: CPA
tsk, tsk, this question belongs in the tax thread up top.

Sorry I havnt won anything for this years taxes , but I'm up $5 in internet poker for next years taxes so I was curious

LOL. As stated it's reported as income to the extent winnings exceed loses. Not sure if you have to worry about $5 in internet poker though.

 

[Commish]

Originally posted by: GoodRevrnd
How much money do you have to win before you report it? How much money can you win and get away without reporting it? How much money do you have to win before the casino reports your winnings?

<--- Never been to Vegas, going next month.

A:I believe it's $1200 before they have to file it to the IRS.
B:They report it to the IRS, if you get away with it, good luck.
C: See A

 

[Kyteland]

Originally posted by: Commish

Originally posted by: GoodRevrnd
How much money do you have to win before you report it? How much money can you win and get away without reporting it? How much money do you have to win before the casino reports your winnings?

<--- Never been to Vegas, going next month.

A:I believe it's $1200 before they have to file it to the IRS.
B:They report it to the IRS, if you get away with it, good luck.
C: See A

I can back this number up. The casino doesn't need to fill out an IRS form until you win $1200 or over.

As somebody who makes slot machines for a living let me tell you, don't hold your breath on making enough $$ in a casino for the IRS to care.

 

[Bleep]

As somebody who makes slot machines for a living let me tell you, don't hold your breath on making enough $$ in a casino for the IRS to care

I had a very good friend that invented the rotary Magazine for slot machines when he worked for Bally when they were just a candy company. His name was C.D. Kaufmann and went by the name of Doc. Had his own business in Vegas for a while making those huge machines that stand outside the casinos.
Bleep

 

[Kyteland]

Originally posted by: Bleep

As somebody who makes slot machines for a living let me tell you, don't hold your breath on making enough $$ in a casino for the IRS to care

I had a very good friend that invented the rotary Magazine for slot machines when he worked for Bally when they were just a candy company. His name was C.D. Kaufmann and went by the name of Doc. Had his own business in Vegas for a while making those huge machines that stand outside the casinos.
Bleep

I hope he got paid royalties on his invention. He would be set for life. :Q