Do I have to pay taxes on winning a mere $350 on online gambling?

Question

I have deposited about $950 into an online gambling website over the past few months and have won and requested payouts that add up to $1300, with the most being a $550 payout. So overall I am up $350....I was just wondering if I need to pay taxes on the winnings. Thanks

Answer 1

Do you HAVE to? No  There is no reporting between any offshore gaming site and the IRS.  Depending on how you received your payout may also influence this.  Your bank will only report to the IRS if you have deposits in the 10K range.  I wouldn't worry about it personally, but you are required by law to report all of your worldwide income.  The income would actually be $1300, and the $950 would be an expense.  Please note that I am not an accountant or a lawyer and this answer is merely my personal opinion and is not to be construed as legal advice in any way. .. ;)

Answer 2

Technically yes, but it's highly unlikely the IRS will notice or care.  They have bigger "fish to fry" as they say.

Answer 3

Yes.

Answer 4

IRS requires a flat 30% tax on all gambling winnings.

You need to check your gambling site's Terms of Service Agreement and see if they report any payouts to the IRS.  

You should also check with your bank to see what their policy is on deposits made to your account and if they report any to the IRS. If they do, it's probably over $2000.  It's possible that they report any deposits made from gambling sites.  By law, they must tell you if they do.

If you are reporting any gambling income on your taxes, it's best to report all of them.  If you get audited, you don't want that $350 causing you a lot of problems.

http://www.irs.gov/newsroom/article/0,,i...