Search results
Results From The WOW.Com Content Network
Gambling gains must be reported as income on your federal and state income tax returns. Losses ... only between 10% and 12% of taxpayers will itemize deductions. Thus, chances are the gambling ...
Essentially, in order to qualify for a deduction of losses from wagering, the taxpayer can only deduct up to the amount of gains accrued from wagering. In Commissioner v. Groetzinger, the Supreme Court Justice Blackmun alludes to Section 165(d) which was a legislative attempt to close the door on suspected abuse of gambling loss deductions. [2]
Most people put their gambling winnings on their 1040 as “Other Income,” according to the IRS. On itemized taxes, you can deduct gambling losses from the taxes on your winnings. Kansas state taxes
For premium support please call: 800-290-4726 more ways to reach us
While state-authorized wagers are taxed at 0.25%, illegal gambling is subject to a higher tax of 2% to dissuade unregulated wagering. [5] In addition, the IRS holds an occupational tax of $50 for each principal or agent accepting wagers for legal wagers and an annual occupational tax of $500 for illegal wagering agents. [10]
Section 183(b)(2) provides that a taxpayer may deduct an amount "equal to the amount of the deductions which would be allowable [ . . . ] only if such activity were engaged in for profit, but only to the extent that the gross income derived from such activity for the taxable year exceeds the deductions allowable [ . . .
United States, 633 F. Supp. 912 (D. Nev. 1986), [1] was a federal tax refund case, decided in 1986, regarding the U.S. federal income tax treatment of the gambling income of a professional gambler. Because of this case, gambling winnings in the United States can in certain cases be treated as business income for federal income tax purposes.
Tax returns for federal and Oklahoma state income taxes are due April 15. To file for an extension, taxpayers can fill out Form 4868 by April 15, giving you six more months to complete your tax ...