Q. Would it count as gambling and winnings or self employment tax? Or something else?
A. Gambling winnings.
While professional gamblers may file a Schedule C as self-employed individuals, what you described does not make you a professional gambler (“pursued full time, in good faith, and with regularity, to the production of income for a livelihood, and is not a mere hobby” ) Reference: https://silvertaxgroup.com/professional-gambler-tax/#:~:text=Gambling%20must%20be%20%E2%80%9Cpursued%20full,what%20this%20means%20for%20you.
I struggle with more complex sentence structure. But would it be the normal threshold for filing taxes? Like if I got 500 or more bucks from one of these cash games would it be the regular threshold since it's not a job for me ans don't need to file for self employment?
Q. Would it be the normal threshold for filing taxes? Like if I got 500 or more bucks from one of these cash games would it be the regular threshold since it's not a job for me and don't need to file for self employment?
A. Yes, the "normal threshold" applies. If your total income, including gambling winnings, is less than $13,850 (2023), you do not need to file a tax return. There are two exceptions: 1. you have more than $400 of self employment income and 2. You can be claimed as a dependent, by somebody else, and you have more than $1250 of unearned income. Cash games winnings is "unearned" income.