Name:
Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL -cpabakem01@yahoo.com **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: http://www.blognetnews.com/accounting (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Thursday, July 19, 2007

Gambling Winnings And Losses

Your summer vacation may mean a trip to the casino or the racetrack. What will you owe Uncle Sam if Lady Luck happens to be on your side?

Gambling winnings are fully taxable and must be reported on your tax return.

You must file Form 1040 and include all of your winnings. Gambling income includes, among other things, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. You can find more information in Publication 525, Taxable and Nontaxable Income.

Anyone who pays your winnings or awards you a prize is required to issue you a Form W-2G if your winnings are subject to Federal income tax withholding or if your winnings are over a certain amount.

To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show both your winnings and losses.

For more information, refer to Publication 529, Miscellaneous Deductions.

The publications are available at IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676).

Links:
Publication 525, Taxable and Nontaxable Income
Publication 505, Tax Withholding and Estimated Tax
Publication 529, Miscellaneous Deductions

Internal Revenue Service

1 Comments:

Blogger Ryan Yatol said...

Hi, I found your blog quite informative. I just came across your blog and wanted to drop you a note telling you how impressed I was with it. I give you my best wishes for your future endeavors.

If you have a moment, please visit my Online-Casinos.com - Casino Gambling Guide site. Also find gambling advice and strategies for online casinos.
Have a great day!

3:59 PM  

Post a Comment

<< Home