How much money can you win before it's taxed?

Question

went gambling and brought home 6,700.00, will that be taxed??

Answer 1

If we are talking about online gambling ----

As I express on another similar question, there is no connection between your offshore gambling corporation and IRS, it is up to you to go and declare that.

Remember that gambling is not legal in all jurisdiction so you might wanna check that before going to IRS and tell them “ Hey I won money gambling”

Answer 2

You are supposed to report all gambling income, you can deduct your gambling losses from it.

If you win or lose over 10,000 dollars you will trigger a mandatory action by the casino to fill out what is know as a ctr form, to report to the irs, it basically has your name and ssn and the amount of money you bought in or cashed out with.  Recently the number was lowered to 5,000 for bank deposits, i am not sure if that applies to casinos.

If you used a players card it is likely that this was done without you knowing if you cashed out with such a large amount all at once and i would highly recomend declairing it come tax time, as i said you can deduct previous losses from it.

If you did not give your name whiel in the casino, or you cashed out in small amounts or won it over several small wins all less than 5000 within a 24 hour window, the irs will have no way of knowing you have that money  and its your call as to weather you want to pay taxes on it or not.

I personally do not support the idea of taxing gambling winning since it is only a matter of time before you eventually lose them and are stuck having had payed taxes on money you no longer have.  You are supposed to though, for any amount.

Answer 3

if they were in a casino, then the taxes were already taken out from their winnings.  Next year they will receive a form to file with their 2008 tax return of what they won and the amount that was taxed.