Questions about gambling tax ?

Hello everyone!

I'd like to start off by briefly describing myself and situation. I'm a college student in my 20's and have been going to a small local card rooms several times a day, 7 days a week and have won about 300,000 dollars within the past 5 months. Of course, it didn't always work out for me this way, as for many years, I've lost a lot of money. But only recently I learned to properly manage my money and have "guidelines" and discipline to follow them.

I only deposited couple of thousand dollars in my bank account. I want to deposit most of the money into the account soon so that I can start investing it but I know I need to know how to deal with the tax stuff first.

But anyways, I've never had a job before or paid taxes before. I've been researching on this topic for a while but still not sure about couple of things.

They say I need to keep a "gambling log" with legit documents to support them. I did keep track, but the cardrooms don't have any players card so they can't really provide any documents to support my winnings. They did get my ID and SSN a year or two ago when I withdrew over 10K at once. However, nowadays I withdraw about 1G at a time, so they don't ask for it anymore, but they already do know my name and face.

So how should I start paying taxes? How do I start depositing the money into my bank account? I hear that the bank reports to IRs of any suspicious activity and I'm sure itd look very weird if I deposit thousands of dollars a day, a student account at that..

since paying taxes on table games is based on "honor code", cant I just keep about a third cash with me and deposit the rest and pay taxes on that? and change the gambling log based on that information, can IRS find out? there really is no documentations of any kind..

Any suggestions/advices on this would be greatly appreciated.

Quote: mproctor

Hello everyone!

I'd like to start off by briefly describing myself and situation. I'm a college student in my 20's and have been going to a small local card rooms several times a day, 7 days a week and have won about 300,000 dollars within the past 5 months. Of course, it didn't always work out for me this way, as for many years, I've lost a lot of money. But only recently I learned to properly manage my money and have "guidelines" and discipline to follow them.

I only deposited couple of thousand dollars in my bank account. I want to deposit most of the money into the account soon so that I can start investing it but I know I need to know how to deal with the tax stuff first.

But anyways, I've never had a job before or paid taxes before. I've been researching on this topic for a while but still not sure about couple of things.

They say I need to keep a "gambling log" with legit documents to support them. I did keep track, but the cardrooms don't have any players card so they can't really provide any documents to support my winnings. They did get my ID and SSN a year or two ago when I withdrew over 10K at once. However, nowadays I withdraw about 1G at a time, so they don't ask for it anymore, but they already do know my name and face.

So how should I start paying taxes? How do I start depositing the money into my bank account? I hear that the bank reports to IRs of any suspicious activity and I'm sure itd look very weird if I deposit thousands of dollars a day, a student account at that..

since paying taxes on table games is based on "honor code", cant I just keep about a third cash with me and deposit the rest and pay taxes on that? and change the gambling log based on that information, can IRS find out? there really is no documentations of any kind..

Any suggestions/advices on this would be greatly appreciated.

Feel free to try to cheat the IRS. If you get audited I hear they are very good at figuring out liars. I have never been audited so I don't know the ins and outs...

As to how to start paying taxes, you just put your gross winnings on the front of your 1040 as "other income," and deduct your gross losses on Schedule A as "other miscellaneous deductions" or whatever. There are a couple books out there and I would suggest picking one up. Tax Help for Gamblers is a good one.

And might I ask, 300 grand in 5 months? [EDIT: fixed, initially said years] Good god man, what are you playing?

Thank you for your help!

I played mini-baccarat.

Not to brag, but not 5 years, 5 months haha.

But the reality is, I've lost a LOT over the years. Even though I started relatively small back in the days, playing blackjack and stuff. But over the years, my betting amounts increased exponentially.

Since the card rooms are only 5-10 minutes away from my home, I go there a 2-3 sessions a day. I play for 30minutes to an hour, after I hit my goal, I leave. Then couple of hours later I come back, do it again. I set my session goal to about 1,000 dollars.

All I can say is, only way to win at gamblings is having a "business" mindset. You gamble to make money, not to mess around. Most people, including my old-self think about gambling as "easy" and "fun" way to make money. Sure, it's fun to gamble and all but if you really want to make it a profitable, you have to take it very seriously. Emotions are the gamblers' worst enemy. That's why I make quick short sessions to keep myself from getting exhausted or lose my discipline.

Like I mentioned before, there is no way to "predict" the outcome of the next hand using past hands; you can only make guesses. I do notice that there are some "guidelines" , reading trends and patterns in baccarat, that help people make "guesses," which do work more often than not. But people tend to put too much confidence on certain "set-ups", and not use good bankroll management, so they end up losing in the long run But with good management and discipline, it can be profitable, kinda like poker..

The betting limits very weird here. Minimum is 5 but the maximum is I believe at least couple of thousands.

Quote: mproctor

Since the card rooms are only 5-10 minutes away from my home, I go there a 2-3 sessions a day. I play for 30minutes to an hour, after I hit my goal, I leave. Then couple of hours later I come back, do it again. I set my session goal to about 1,000 dollars.
.

And these card rooms have let you walk away with
$300,000 of their money since June, just by making
good 'guesses' at the next outcome. And you go on
a public forum wondering about the taxes.

Lol. Whatever, dude..

Quote: mproctor

Hello everyone!

Caution: mproctor could very well be an IRS troll looking for information and IP addresses of casino well-doers who have Loose Lips. If he isn't an IRS employee, he just raised enough red flags for the IRS to come knocking on his door.

Quote: mproctor

All I can say is, only way to win at gamblings is having a "business" mindset. You gamble to make money, not to mess around. Most people, including my old-self think about gambling as "easy" and "fun" way to make money. Sure, it's fun to gamble and all but if you really want to make it a profitable, you have to take it very seriously. Emotions are the gamblers' worst enemy. That's why I make quick short sessions to keep myself from getting exhausted or lose my discipline.

Wish I read this 40 years ago when I started gambling. I’d be filthy rich by now at age 61.

I’m not saying you couldn’t hit a mega jackpot and have a life changing win, or you couldn’t be the luckiest kid on earth playing mini baccarat and accumulating 300k in five months.

But, for the most part this is one of the more serious gaming forums around. Joining yesterday and making your first thread asking for illegal advice how to screw the IRS is so fn stupid, it makes your alleged winning streak sound even dumber then you.

Besides, at the rate your gambling business is growing, paying taxes should be a welcome hurdle. Also, where do you think you could invest money with a better return then 300k in five months?

If what your saying has any truth to it, the negative EV devil is sitting on your shoulder laughing his ass off. My advice would be stay in school, pay your tuition with your winnings and quit gambling today.

Quote: EvenBob

And these card rooms have let you walk away with
$300,000 of their money since June, just by making
good 'guesses' at the next outcome. And you go on
a public forum wondering about the taxes.

Lol. Whatever, dude..

If he's playing at one of the card rooms where outside players bank and he only pays a commission for each hand to the casino, I doubt they'd care how much he has won since they are gaining commission and losing nothing.

You gotta love these posts by new members. Whenever I look at the 'Recent Threads' list and spot a name that I'm not familiar with, I glance over to the left at 'Newest Members'. If that same name is on that list as well, then I always prepare myself for a s2pid question.

Quote: wudged

If he's playing at one of the card rooms where outside players bank and he only pays a commission for each hand to the casino, I doubt they'd care how much he has won since they are gaining commission and losing nothing.

Doubt it. He would have mentioned it if that were the case. More than likely, he's just a troll. Or an IRS guy like Bohemian said.

Ask the IRS yourself. Actually, you already have.

this is Gr8

Quote: GWAE

this is Gr8

+1

But it's also kinda s2pid too. lol...

You should talk to a lawyer. Situation will be over in less than a week. I'm lucky to have one on call. I'd say retainer, but I've never given him a dime because every time he's handled something for me he's won and gets a cut of the settlement. But, for a grand you can put one on retainer and for 10, you'll be bonded out in about an hour. My risk is traffic and arrest on some crap or someone else crap. It's a good idea if you have some risk for DUI.

Assuming this is not a troll question or a made up story of winning (and I have never played live poker) why would the fellow report ANY winnings to the IRS? Because he wants to keep up the good name of gamblers to the IRS? If there's no records there's no records. Why make one? And I don't buy that there is an IRS snoop on here.

Quote: wroberson

You should talk to a lawyer. Situation will be over in less than a week. I'm lucky to have one on call. I'd say retainer, but I've never given him a dime because every time he's handled something for me he's won and gets a cut of the settlement. But, for a grand you can put one on retainer and for 10, you'll be bonded out in about an hour. My risk is traffic and arrest on some crap or someone else crap. It's a good idea if you have some risk for DUI.

If you're saying you have an opportunity to get pinched for DUI, that's despicable. If I took it wrong then my apology.

Quote: EvenBob

And these card rooms have let you walk away with
$300,000 of their money since June, just by making
good 'guesses' at the next outcome. And you go on
a public forum wondering about the taxes.

Lol. Whatever, dude..

I'm with Bob on this one - sounds suspicious. First of all, unless you have a trust fund, a college student in their 20's that never had a job probably does not have the bankroll to propel himself towards 300k

Quote: tournamentking

If you're saying you have an opportunity to get pinched for DUI, that's despicable. If I took it wrong then my apology.

Not me. I don't drink. Never acquired a taste for it.

Quote: mproctor

I played mini-baccarat.

Not to brag, but not 5 years, 5 months haha.

But the reality is, I've lost a LOT over the years. Even though I started relatively small back in the days, playing blackjack and stuff. But over the years, my betting amounts increased exponentially.

Since the card rooms are only 5-10 minutes away from my home, I go there a 2-3 sessions a day. I play for 30minutes to an hour, after I hit my goal, I leave. Then couple of hours later I come back, do it again. I set my session goal to about 1,000 dollars.

All I can say is, only way to win at gamblings is having a "business" mindset. You gamble to make money, not to mess around. Most people, including my old-self think about gambling as "easy" and "fun" way to make money. Sure, it's fun to gamble and all but if you really want to make it a profitable, you have to take it very seriously. Emotions are the gamblers' worst enemy. That's why I make quick short sessions to keep myself from getting exhausted or lose my discipline.

Like I mentioned before, there is no way to "predict" the outcome of the next hand using past hands; you can only make guesses. I do notice that there are some "guidelines" , reading trends and patterns in baccarat, that help people make "guesses," which do work more often than not. But people tend to put too much confidence on certain "set-ups", and not use good bankroll management, so they end up losing in the long run But with good management and discipline, it can be profitable, kinda like poker..

The Force is very strong right now. Is my Master nearby?

Quote: mproctor

Thank you for your help!

I played mini-baccarat.

Not to brag, but not 5 years, 5 months haha.

But the reality is, I've lost a LOT over the years. Even though I started relatively small back in the days, playing blackjack and stuff. But over the years, my betting amounts increased exponentially.

Since the card rooms are only 5-10 minutes away from my home, I go there a 2-3 sessions a day. I play for 30minutes to an hour, after I hit my goal, I leave. Then couple of hours later I come back, do it again. I set my session goal to about 1,000 dollars.

All I can say is, only way to win at gamblings is having a "business" mindset. You gamble to make money, not to mess around. Most people, including my old-self think about gambling as "easy" and "fun" way to make money. Sure, it's fun to gamble and all but if you really want to make it a profitable, you have to take it very seriously. Emotions are the gamblers' worst enemy. That's why I make quick short sessions to keep myself from getting exhausted or lose my discipline.

Like I mentioned before, there is no way to "predict" the outcome of the next hand using past hands; you can only make guesses. I do notice that there are some "guidelines" , reading trends and patterns in baccarat, that help people make "guesses," which do work more often than not. But people tend to put too much confidence on certain "set-ups", and not use good bankroll management, so they end up losing in the long run But with good management and discipline, it can be profitable, kinda like poker..

LOL Here it comes. A new alias with a baccarat system.

I wonder if that man, his wife and cat are still going to be at the Nugget Challenge with Canadian 100s.

Quote: rob45

The Force is very strong right now. Is my Master nearby?

Quote: anonimuss

LOL Here it comes. A new alias with a baccarat system.

Good call, guys! I totally missed his second post where he mentions mini bac. :D

As the first reply-er who took the guy seriously, I feel pretty silly. Yes, the facts don't add up. Yes, he's probably a troll. I just feel compelled to offer good advice whenever I can.

Anyway, if you're not a troll and the story is real, I suggest you stop gambling immediately. You've won enough for a lifetime, no sense giving it back in -EV games.