Jai-Alai Question of the Week

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#474 - (redux) Do you worry about the tax man?

Posted on March 11, 2013 at 11:55:06 AM by Tiger

Rehash of a 2004 QOW for new members

We won't get into state taxes or the details of standard/itemized deductions, just the basic IRS premise that gambling winnings are taxable. And, we won't get into such laughable Internal Revenue pearls of wisdom like the fact that 'bribes received' are considered taxable income, yet 'bribes paid' are not deductible - yes, they REALLY say that.

In a nutshell, if your ticket pays more than $600 (and is more than 300 to 1) the fronton must file a Form W-2G (cc to you). If the amount is greater than $5,000 the fronton must also withhold 25 percent (28 percent without a verifiable Taxpayer Identification Number). If you get whacked like this, it will help if you can deduct losses (to the extent of winnings) - if you itemize deductions, that is.

IMPORTANT: Sorry, but even if you choose to ignore it (and most do), ALL gambling winnings are taxable, PERIOD. Regardless of the amount.

Two ways around the signing issue (one 'legal', the other not):

How do you play this game?


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