you have March Madness? I know we do
around our household and I love every minute of it!
people are glued to the television this month, not only because you get to see
huge upsets like Lehigh over Duke on Friday night, but also because people have
major wagers on the games.
Madness gambling is only second to the Super Bowl and you know that with all of
that money flying around, the Internal Revenue Service is right around the
corner with their eyes on everyone and their money.
difficulty for the IRS is that it is so difficult to track the gambling winnings
due to the fact that wagers can be placed behind closed doors and those losing
aren’t necessarily reporting their losses.
you happen to strike it big, whether it is at a casino, in Vegas, or you win
the lottery, you can expect to pay about 25% to Uncle Sam.
if you end up on the winning side; make sure you keep proof of your losses as
well. The IRS allows you to subtract any
gambling losses from the winnings if you itemize. Also, just a reminder, you can’t subtract
more than you won.
you do report your winnings and plan on subtracting your losses, make sure that
you keep good records throughout the year.
We say it time and time again, but good records are the key to being able
to prove to the IRS that you are shooting a Hail Mary.
good records, don’t gamble with money you can’t afford to lose, and you maybe
this year’s Cinderella!
you find yourself dancing in the Final Four, feel free to give us a call or
stop by one of our locations to get you prepped for the finals!
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.