"IT'S SKIN'S! It's ALL Skin's!!!!"

[Skinofevil]

Dear MM,

In a purely hypothetical situation...say someone won a certain amount of money in a fifty fifty...let's say 2625.00...does this have to be declared? Are fifty-fifty winnings taxable? If so, how much will Uncle Sam take of Skin's pie? If Skin...let's say...FORGOT to declare this, would Skin go back...that is, go TO jail?

Thank you,
Skinofevil

[missmanners]

^ technically all gambling winnings over $600 are taxable. If Skin were to win this amount and someone were to ask Skin for his social security number, then Skin would get something called a W2-G form and Skin would have to pay about 27% in taxes. Does Skin itemize deductions? Skin may deduct gambling losses (up to the amount of gambling winnings) as a miscellaneous deduction on Schedule A Form 1040, line 27. However, Skin would need old lottery tickets, bet slips or whatever to prove the losses. If Skin forgot to declare the winnings because he thought the W2-G form was junk mail and he tossed it and the IRS ever caught up to Skin, they would probably just make him pay the amount owed plus a penalty.

;)
mm

[Skinofevil]

Wow. Thanks for the reply. Clearly missmanners knows more than the average broad.

Skin does indeed itemize deductions. As a freelancer, Skin pays quarterly estimates to the State and Federal blood suckers. Deductions seem to be the only way Skin can manage to keep his few pennies safe!

[missmanners]

Skin should never throw away any receipt. In fact, Skin should ask everyone he knows to save receipts for him, especially for things like office supplies (or anything that even looks like office supplies), postage, and of course any supplies that Skin uses for his work.
I know all about these pocket picking Uncles! I hate writing the check for self employment tax 4 times a year myself.

;)
mm

[Kefka]

Pretty much.