Should I report my online winnings to the IRS?

Question

Do professional online gambler report their winnings to the IRS?.I

just hope if they found out how much money I've won online they don't charge me with tax evasion.Online gambling is illegal so you're not suppose to report your winnings,right?

Answer 1

I actually know nothing about "online gambling".  But technically, gambling winnings are reportable.   You can only write off your winnings up to the amount of your losses.  For example, if you won $500 and you lose $1000, you can write off $500.

Answer 2

Wrong. You are required to report it.  Income being illegal doesn't relieve you of the obligation of paying tax on it.  And yes, you can be charged with tax evasion if you fail to report significant amouts of income - read up on a guy named Al Capone.

Answer 3

Years ago, the police department of a local city had a sting operation and arrested many prostitutes. Once they were found guilty, the IRS came in and examined their lifestyles, bank accounts, etc and assessed an income tax based on the income needed to support that lifestyle.

Answer 4

You are required to report the total of your gambling winnings, legal and illegal, to the IRS.  You are not required to report whether they were legal or illegal.

Answer 5

Gambling winnings are reported on Line 21 of Form 1040 as "other income."  If you itemize, you may deduct your gambling losses up to your winnings on Schedule A.

Whether the activity is legal or not, the income is required to be reported.