witholding taxes on winnings

[Rupert Pupkin]

Originally Posted by obie1

I was lucky enough to have (2) dollar tickets on the derby winning exacta does it make any tax difference if I cash them both in at the same time? How much will they take out in taxes each ticket is worth just over a thousand dollars. Someone told me they take out 25% is that of the amount over $600 or is it of the entire amount. Hate paying taxes when I finally have a winner.

If you save your losing tickets and you can show that despite hitting the exacta that you still lost money gambling this year, then you will have no tax liability. On your tax return, you will need to show that you won the money on the exacta, but along with that information you will need to show that you had losses higher than that amount to offest the win. Then you will not be required to pay taxes on the winnings.