Originally Posted by CSuave
bhood, currently you are required to pay tax on any money you receive. That is to the strict letter of the law. If you win money on a scratch off lottery ticket you are supposed to report it and pay the taxes. They have stated that the sites would be taxed on the deposits not the players though.
What are you talking about? The one form of gambling and taxes I'm familiar with is horse racing. The only time you are required to claim winnings is on a ticket that hits at odds
of 300-1 or greater. I could win $100,000 on a win bet and not have to report a thing. I've never heard of ANYONE claiming a scratch off. Maybe a major score like a 50k scratcher, but not a $20.
Edit: OK maybe I need a new tax man. The issue of claiming none trigger amounts has never come up. What's even more confusing is that I've had several talks with several IRS agents about gambling taxes and they also have never even asked about none trigger amounts. I guess it's better to be safe than sorry, but if the agents don't even bring it up how much danger could you be in? I know, I know...you don't have to answer this. (hehe)