Government Has A Right To All Gambling Income, No Matter How Small

Although it is almost impossible for the U.S. government to keep track of everyone's gambling winnings, that does not mean they are not entitled to a portion of them.

The U.S. government has made a habit of trying to get their hands on as much of Americans hard earned money as possible. They take about twenty five percent of people's income and then wonder why the economy is lagging.

Here is another fact that should be known. Any gambling income, regardless of how small or inconsequential, is considered taxable income.

Say for instance, that a bet was made between you and your best friend on the Super Bowl. If you think you won twenty dollars when the Giants won, think again. The government actually wants their share for your good fortune.

Now it is almost impossible for the IRS to track down such bets, but that does not mean you don not owe them. In fact, anything that comes to you, be it through good fortune, or skill, is taxable.

There is one way out of this dilemma. Classify yourself as a professional gambler. Once you claim to be a professional gambler, you can write off most of your expenses against your winnings.

This is not a clear cut way to beat the system, however. Once you are considered a professional gambler, you might have to pay self employment taxes.

March 12, 2008
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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