What to do after a sizable win?

[SMC2323]

I’ve read that you must report your earnings on anything larger than $600. I surpassed that and need to figure out what to do. I placed the bet on Twinspires so I assume they will be issuing paperwork. Just curious of the procedure. Thanks, Steve

[casp0555]

I don't think you have to pay taxes on any winnings unless they are 300 times the total wager, I may be wrong but that's what I believe the new tax rules are since 2017????

[jms62]

Originally Posted by casp0555

I don't think you have to pay taxes on any winnings unless they are 300 times the total wager, I may be wrong but that's what I believe the new tax rules are since 2017????

True Billy.... Also note I guess there is a new Rule that if you are the President you can tell the Bank you are rich beyond imagination to get a loan but tell the IRS you are down to the felt and losing money like a drunkin OTB regular and no one will recognize that both conditions cannot exist at the same time. Income Tax Evasion or Bank Fraud. But I Digress...

But after a sizable win if you get a W2G DO NOT invest it in the stock market cause

1. You have to pay those taxes on the sizable win
2. Can NOT write off those stock market loses vs that sizable win...

[SMC2323]

Great news. Thanks for the info

[philcski]

Originally Posted by jms62

True Billy.... Also note I guess there is a new Rule that if you are the President you can tell the Bank you are rich beyond imagination to get a loan but tell the IRS you are down to the felt and losing money like a drunkin OTB regular and no one will recognize that both conditions cannot exist at the same time. Income Tax Evasion or Bank Fraud. But I Digress...

But after a sizable win if you get a W2G DO NOT invest it in the stock market cause

1. You have to pay those taxes on the sizable win
2. Can NOT write off those stock market loses vs that sizable win...

You can if they're in on the con, either by force or by choice...

[Dunbar]

Originally Posted by casp0555

I don't think you have to pay taxes on any winnings unless they are 300 times the total wager, I may be wrong but that's what I believe the new tax rules are since 2017????

That may be the rule for receiving a Form W-2G, but the IRS still wants you to pay tax on any gambling winnings. As I understand it, the sum of all your winning days at the track are taxable. And you can only deduct the losses of your losing days, or losses from other kinds of gambling, if you itemize. (or if you file a Sch C as a professional gambler).

[jms62]

Originally Posted by Dunbar

That may be the rule for receiving a Form W-2G, but the IRS still wants you to pay tax on any gambling winnings. As I understand it, the sum of all your winning days at the track are taxable. And you can only deduct the losses of your losing days, or losses from other kinds of gambling, if you itemize. (or if you file a Sch C as a professional gambler).

How would IRS know about this win since it has no documentation?

[richard burch]

No accounting experience and could be totally wrong but.....If you did this wager online I would think it could be tracked by the deep state. I wonder if they would send you a W-2 if you needed to declare something. But aren't winnings offset by losses? Isn't that the reason for saving those losing tickets?

Not sure about fanduel either if you hit for a large sum on sports. all those wagers are there to see, cant hide it.

[Dunbar]

Originally Posted by jms62

How would IRS know about this win since it has no documentation?

I interpreted the initial question as asking what the IRS rule is, not whether they can figure out if you're reporting correctly.

[Dunbar]

Originally Posted by richard burch

... But aren't winnings offset by losses? Isn't that the reason for saving those losing tickets?...

You can't offset winnings with losses unless you itemize deductions on Sch A. For winnings at a gaming table or a slot machine, you're able to just report your "session" net win, and there has been a lot of discussion about what constitutes a "session". I think it's generally considered to be each time you cash out, but never longer than a day's gambling. I don't know what the "session" standard is for horse racing. If you do file a Sch A, then "saving those losing tickets" makes sense. It might also make sense if you can argue that a horse racing "session" is a day's bets.

You can also deduct losses (as well as expenses) if you're serious and continuous enough to declare your gambling a business and file a Sch C. However, that has its own set of issues. For example, if you file a Sch C you have to pay an additional "self-employment tax" on net profit for the year.

[caveat--I'm not a CPA. But I have filed a Sch C for gambling income for over 25 years with no major problems.]

[SchexNola]

Originally Posted by SMC2323

I’ve read that you must report your earnings on anything larger than $600. I surpassed that and need to figure out what to do. I placed the bet on Twinspires so I assume they will be issuing paperwork. Just curious of the procedure. Thanks, Steve

Congrats. Old man told me long ago 2 things - When you make a good score whatever amount considered to you to be a good score buy something tangible to reward yourself. - shoes, a BBQ pit, something for your house you been wanting...anything to let you know & remind you you had a good day. Cause in the grind that is this game those days a fewer between than the losing ones.

And 2 - he said take off the next day!