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Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 2:06 am
by lichtman
For those tax-minded previous winners:
Did the winnings come classified as gambling winnings or self-employed/independent contractor earnings?
It makes a difference as far as being able to offset winnings with losses (if it is gambling winnings) and having to match and pay FICA if it is self-employed/independent income.
Thanks!
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 5:29 am
by King of Queens
1099-M
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 6:52 am
by richieprimo
Can I write off the 10% of my winnings that I must give to Guido "Fishface" Linguini from 13th and Wolf?
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 6:57 am
by Dr. FI$HER
Lee-
I believe they are gambling winnings which can be offset with any gambling losses.
[ December 27, 2006, 01:07 PM: Message edited by: Dr. FI$HER ]
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 8:00 am
by King of Queens
Originally posted by Dr. FI$HER:
Lee-
I believe they are gambling winnings which can be offset with any gambling losses. Incorrect
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 8:24 am
by Dr. FI$HER
K of Q-
Why can't these be offset with gambling? And if not what can you offset them against?
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 8:36 am
by lichtman
I know that I'm getting detailed here, but was it reported in Box 3 of the 1099m or box 7?
Box 3 good, box 7 bad. If it is in box 7, we would owe payroll taxes on that money.
I guess they are not classified as gambling winnings because Krause Publications is not licensed to run a gambling operation.
[ December 27, 2006, 02:36 PM: Message edited by: Lee Scoresby ]
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 9:18 am
by Ted's Cracked Head
I will also need a clarification on this as I was under the impression that you could write off gambling losses like losing lottery tickets and horse racing losers. I think I did this last year with my winnings? I will check my return.
IN 2001 I claimed "gambler" and wrote off my "home office" expenses and travel stuff for some major pony winnings and in 2005 the IRS decided that I was wrong. My accountant suggested we were right but that fighting them would be costly and might set me up for future scrutiny. That I did not need so I ate all of it.
I will be calling my accountant next week to discuss this very issue and I will post what he says.
I would be curious to hear what others say too.
[ December 28, 2006, 11:57 AM: Message edited by: Ted's Cracked Head ]
Question to those you have cashed out in the past
Posted: Wed Dec 27, 2006 9:51 am
by ultimatefs
pretty sure you can only write off the expenses that pertain to your winnings. Anything NFFC related like all league entry fees, mags, travel, hotel, etc...
Question to those you have cashed out in the past
Posted: Thu Dec 28, 2006 4:44 am
by lichtman
After further investigation, I am pretty certain that because these winnings are reported as "miscellaneous income" on form 1099-M as opposed to "certain gambling winnings" on form W2-G you can not deduct losses against them. This is because as far as the IRS is concerned, you won a "prize" not gambling winnings.
I do not believe that Krause is licensed to run or pay out "certain gambling winnings" so there is no way they can send us a W2-G.
Greg -- any thoughts about teaming up with a Wisco Indian casino?
