Az Gambling Tax
I'm having an issue with my 2016 taxes. Originally turbo tax calculated that I owed Ohio approximately $8,000 because of my gambling winnings in Indiana. At the time I was unable to pay for a second state and open a Indiana return. After updating my software yesterday and going to amend my taxes now TurboTax says they don't think I need to file a Indiana return and that I owe Ohio 6000. Your gambling winnings are generally subject to a flat 24% tax. However, for the following sources listed below, gambling winnings over $5,000 will be subject to income tax withholding: Any sweepstakes, lottery, or wagering pool (this can include payments made to the winner (s) of poker tournaments).
There are two main tax benefits of filing taxes as a professional gambler. First, it allows you to net your wins and losses which leads to a much lower AGI which in turn affects a great deal of tax deductions. Second, it allows you to deduct expenses incurred while gambling such as food, travel, and equipment. However, professional gamblers must pay self-employment tax which is considerable - recreational gamblers do not pay this tax.
Az Gambling Taxes
Deciding on whether you should file as a professional is a very complex decision that is full of risks and uncertainties. However, given the complexity of the tax code even figuring out the amount of savings/cost of choosing professional over recreational is extremely difficult without basically doing your taxes twice. To evaluate taking a risk you must be aware of the reward - this calculator is designed to help you quickly estimate the monetary amount you stand to gain or lose by filing as a professional gambler.
Two important notes. First, this calculator does not take into account every possible scenario and is only an estimate. It is based on the criteria I used to make this decision for myself; I hope to expand it with time. Second, the calculator will not tell you whether you should file as a professional - it simply estimates the financial gain/loss of doing so to help you determine if the risk and hassle is worth the benefit. You should consult a tax professional who specializes in gambling.
Az Gambling Tax Rates
Az Gambling Tax
Reporting Gambling Profits and Loss on Your Taxes Gambling Losses Can Be Deducted on Schedule A. If you itemize your deductions, you can deduct your gambling losses for the year on Schedule A. However, you can only deduct your loss up to the amount you report as gambling winnings.