1. Casino Games
2. Lottery Games
3. Horse/Dog Races and other wagering transactions
4. Bingo
5. Slot Machines
6. Keno
7. Poker Tournaments
What are the federal income taxes for these gambling games, and make it simple because I’m fifteen?
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Category : Online Gambling
This may be a bit complicated for you unless you know what an income tax return looks like and gambling is a strange animal for tax purposes.
Winnings are subject to index at whatever the persons income tax rate is.
Losses can be deducted from taxable income up to the amount of winnings if you itemize deductions but not if you take standard deduction. As a general rule you will not itemize deductions if you are not buying a house.
Winnings from all of these sources have to be reported on ones income tax return. It depends on what tax bracket a person is in.
First response is sound. All gambling is treated identically for tax purposes: net winnings are taxable income; net losses are not deductible.
For you the tax rate is zero. You’re too young to gamble. Is that simple enough for you?