taxes on prize winnings

For example, if you buy 100 worth of stamps, you must be able to show that you spent all 100 on sweepstakes entries, and none on bills or letters to your Aunt Bertha.
What If I Am a Professional Gambler?
So, if you win a lot, you may well end up having to pay a lot in taxes.
Disclaimer: This article is intended to provide information about how sweepstakes taxes work in the United States in general, not specific tax advice.Gambling winnings include, but are not limited to, money or prizes earned from: Casino games, slot machines, keno, poker tournaments, lotteries.Such income is generally taxed at a flat rate.You also need to be scrupulous in reporting only bed bath and beyond promo code online 2017 expenses that are used for your hobby alone.Its the kind of money you werent counting on that can help with a looming bill or be spent on something you could not otherwise justify buying.Sweepstakes, raffles, betting pools, gameshows, horse or dog races, off-track betting.The IRS requires you to keep detailed records of your gambling winnings and losses, and to keep any related documents, including receipts, tickets, payment slips, statements, Form W-2G, and Form 5754.Its conceivable that a large prize could bump your income into a higher tax bracket.If you are spending spurs sweep eight plane ticket sweepstakes hours a day at your computer entering sweepstakes or spending all of your spare time filling out postcards for mail-in contests, then you likely need to file as if you have a home-based business.
What Kinds of Gambling Records Do I Need to Keep?Is Tax Withheld from My Gambling Winnings?Their fee is well worth it since they will help you hang on to more of your money.How Do I Report Gambling Winnings and Losses?IRS website and a professional tax consultant.For one thing, hobby expenses are only deductible from the income that hobby generates.For help submitting your taxes, contact the IRS or consult a tax professional.Nothing to be done about.