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That section only talks about the casino's obligations to report the income. That is not the same. If you bet $5 with a friend, you are supposed to report that on your taxes as income, but your friend doesn't need to issue you a tax form. But who's going to do that, right?
Look down a little further and it specifically tells you that you can only deduct losses if you itemize. This article is poorly written. This sentence should say "Unfortunately".
"Fortunately, you can deduct losses from your gambling only if you itemize your deductions."
I have a question out to my state's gaming control board for official confirmation. I'll post the response once I have it.
Disclaimer: I am not a tax professional and am not qualified to give tax advice.
Here are a few resources I've found helpful in explaining the topic. I was especially interested in the definition of a gambling session and course-of-play wagering.
Michigan Income Tax - Treatment of Gambling Gains, Losses, and Expenses
https://www.michigan.gov/documents/treasury/RAB_2016-3_Income_Tax_Treatment_of_Gambling_608743_7.pdf
Taxation of Recreational Gamblers: An Overview of How to Report Wagering Gains and Losses
Gambling Taxes: US Income Tax
@Anonymous Thanks, this is good information about defining a gambling session for casino reportings.
it doesn't work that way
The taxation of online sportsbook and casino winnings varies depending on the country or region where you reside. In general, however, you are required to report your gambling winnings as taxable income on your tax return. In the United States, for example, all gambling winnings, including those from online sportsbooks and casinos, are taxable and must be reported to the Internal Revenue Service. If your winnings exceed a certain threshold, the online sportsbook or casino may be required to report your winnings to the IRS as well. I play and win money at online casinos at w88.com. I plan to consult with a financial professional about taxes.
Yes, you owe taxes on the money won. Your gross winnings are taxable. Winning from online betting is taxable. Gambling winnings are considered income. Gambling losses are deducted from the winnings as an itemized deduction on Schedule A as "Other Itemized Deductions."
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