How Can Getting Your Own Money Back Be considerered "winnings"?

[Whoson1st]

Sorry had to start a new thread .
But if you deposit X dollars and never get back more than X dollars--where is the win to report on taxes?
I'm going to drop all this on my tax man at Jackson-Hewlett in 2005.


This has me so upset that I'm on the verge of going crazy.

 

[Journeyman]

Why even go there?

 

[X-Files]

Sorry had to start a new thread .
But if you deposit X dollars and never get back more than X dollars--where is the win to report on taxes?
I'm going to drop all this on my tax man at Jackson-Hewlett in 2005.


This has me so upset that I'm on the verge of going crazy.

How will Uncle Sam know what happened to your money sent offshore?
If you told him any number of stories, does he have any way to verify
them. So why worry? Get on with your life.

 

[X-Files]

Any why drop this on anyone?

 

[Illini]

Hey bro, have a Bud Light. Don't spend your life being so paranoid. Let it go, or stop betting altogether.

 

[Fishhead]

Sorry had to start a new thread .
But if you deposit X dollars and never get back more than X dollars--where is the win to report on taxes?
I'm going to drop all this on my tax man at Jackson-Hewlett in 2005.


This has me so upset that I'm on the verge of going crazy.

Please, try to understand this.

IF YOU KEEP A DETAILED DIARY, YOU HAVE NOTHING TO WORRY ABOUT.

YOU COULD LITTERALLY HAVE $1,000,000 in bank deposits over the course of a year........in-out-in-out-in-out-in-out-in-out-in-out-in-out.....etc., etc.

Obviously this is not going to happen(i hope) but only a couple times a year, but even if it did using the above exaggerated example............keeping a detailed diary of your wins and losses you will have PROFF of what you netted as a gambler and thus what to report on your taxes.

Also, I have recommend to you a very good gambling tax book in the other tax thread........I suggest you invest the $12.95 and purchase it.

 

[jwblue]

Sorry had to start a new thread .
But if you deposit X dollars and never get back more than X dollars--where is the win to report on taxes?
I'm going to drop all this on my tax man at Jackson-Hewlett in 2005.


This has me so upset that I'm on the verge of going crazy.

Don't gambling losses offset the winnings?

IS

 

[steeser]

Please, try to understand this.

IF YOU KEEP A DETAILED DIARY, YOU HAVE NOTHING TO WORRY ABOUT.

YOU COULD LITTERALLY HAVE $1,000,000 in bank deposits over the course of a year........in-out-in-out-in-out-in-out-in-out-in-out-in-out.....etc., etc.

Obviously this is not going to happen(i hope) but only a couple times a year, but even if it did using the above exaggerated example............keeping a detailed diary of your wins and losses you will have PROFF of what you netted as a gambler and thus what to report on your taxes.

Also, I have recommend to you a very good gambling tax book in the other tax thread........I suggest you invest the $12.95 and purchase it.

My question is if you have 50,000 in winnings, and then 50,000 in losses to deduct, does this increase your tax burden by increasing your net earnings?

 

[jamesbong]

My question is if you have 50,000 in winnings, and then 50,000 in losses to deduct, does this increase your tax burden by increasing your net earnings?

Yes, chances are it will increase your tax burden. Firstly, if you normally take the standard deduction, you can't take it now because you have to itemize. So if the sum of your other itemizable deductions (mortgage interest, state/local tax, charity, medical expenses, etc.) is less than the standard deduction, your burden will go up the difference times your marginal tax rate.

Also, your winnings become part of your Adjusted Gross Income. The Personal Expemption (for dependants including yourself) is phased out after you reach AGI of about 140,000. So if you winnings are enough (even if you had a net loss), you can no longer take the expemptions. Tax credits (Education Credits, Child Tax Credits, Adoption Credit, etc.) and IRA's also get phased out as AGi grows. So you may be disallowed from taking advantage of such credits and your tax burden will increase.


It sucks and it is not fair, but it is the way it is required according to IRS code.