Irs Tax Table Withholding
May 1st, 2008
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Question: How does one go about paying taxes if they are a professional gambler?
Lets just say that someone plays the Craps table for a living and earns maybe $200,000 a year, how do they keep records of how much they have won over the year and how would the IRS know if they are telling the truth about it? And, what % would the IRS withhold? Thanks!!!
Answer: You should keep a record of all your winnings and losses. My understanding is you can deduct your gambling losses up to the amount of your winnings.
My understanding is that table games are not reported for the most part. If you win a substantial amount (say $5000) on one had or the pit boss catches your hands they could take out 25% for taxes and give you 1 1099 much like if you had slot winnings….i believe. Unforunately I have never had that happen to me
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As far as the IRS catching someone underreporting, I would imagine during the course of an audit you could be caught. If I were an auditor I would match up any substantial cash deposts after a verified trip to a casino. They could also possibly check your players club card or membership card at the casino to see what you cashed out and in. Big Purchases after a trip perhaps paid with cash and no corresponding withdrawl perhaps. I am sure there are alot of ways one could get busted. Thats why you should always just report what you rightfully earned. Not worth flirting with the law to save a few hundred bucks and those bucks go towards a functioning government.
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