Gambling earnings

[payyourcs]

What is the name of your state? Washington State

My ex spends a lot of his time gambling. I know he is making money from it. Is there a certain amount he must win in order for the casino to make him claim it?

 

[xylene]

All income is taxable.

The IRS reporting requirements are easily found on the IRS website.

I would suggest that if hubby is gambling at a casino he is not making ANY net money.

Don't confuse play through amounts with earnings.

Unless he is some kinda card cheat. Which I also find dubious.

 

[nextwife]

NOBODY really comes out ahead. How many dollars did he SPEND in order to win X dollars? If I "win" $500, but spend more than 500 to get that "win", did I really EARN anything? Maybe, over the long run, I get most of my money BACK< but it's doubtful he REALLY wins if you look at cost/benefit.

 

[penelope10]

If he's coming out ahead I'd like to know the name of the casino he goes to please

 

[OhReally?]

My ex spends a lot of his time gambling. I know he is making money from it.

You do realize this is an oxymoron, right?

 

[payyourcs]

All income is taxable.

The IRS reporting requirements are easily found on the IRS website.

I would suggest that if hubby is gambling at a casino he is not making ANY net money.

Don't confuse play through amounts with earnings.

Unless he is some kinda card cheat. Which I also find dubious.

Ya but whether he reports it or not on his taxes are another issue. I now see that All income is taxable like you said. It clearly states that on the IRS website. One thing that really gets me is a paragraph on the W-2G form is where is talks about not having the tax payors ID number. You would think it would be required to obtain a tax id number if the winnings are a certain amount. This is what it says on the rule of the W-2G form:


Box 2. Any federal income tax withheld on these winnings is
shown in this box. Federal income tax must be withheld at
the rate of 25% on certain winnings less the wager.
Instructions to Winner
If you did not provide your federal identification number to
the payer, the amount in this box may be subject to backup
withholding at a 28% rate.
Include the amount shown in box 2 on your Form 1040 as
federal income tax withheld.
Signature. You must sign Form W-2G if you are the only
person entitled to the winnings and the winnings are subject
to regular gambling withholding.
Other winners. Prepare Form 5754, Statement by Person(s)
Receiving Gambling Winnings, if another person is entitled to
any part of these winnings. Give Form 5754 to the payer.

 

[LdiJ]

NOBODY really comes out ahead. How many dollars did he SPEND in order to win X dollars? If I "win" $500, but spend more than 500 to get that "win", did I really EARN anything? Maybe, over the long run, I get most of my money BACK< but it's doubtful he REALLY wins if you look at cost/benefit.

I agree with you, but there are some people who are classified (through the IRS) as being professional gamblers and most of them actually do make a profit....not a huge profit, but a profit nonetheless.

However, again that is someone who is classified as a professional gambler, and that classification is hard to achieve....because that allows them to treat gambling as a business, which actually has some tax benefits not available to recreational gamblers.

I agree that the average everyday person is never going to make a profit on gambling. However, the odd person could have a windfall. Its very unlikely however that a court would take an odd windfall into consideration when determing child support.

However, if someone won something really serious, then of course the income that they might receive from that (not the win, but the yearly income from the win) could be taken into consideration.