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I've recently taken up betting on eSports games and in the past 2 weeks started to turn a bit of a profit from doing so. To put it in perspective in 2 weeks of lunch break / after work betting I have managed to make as much money as I would in about 6 days of work. Will I need to report this or something? I don't see myself stopping because well, its easy money. Running a month long trial to see how it works out but in reality I don't see why I wouldn't keep doing it if I can make money. I know that "windfall" winnings are not taxable but would this be considered taxable? Newfoundland, Canada
At what point do I have to include gambling winnings in my taxable income?
I used to play poker a lot but have been off of it for the last couple years. My city has a casino and I recently started playing again. I am up a little over 1k in the past few weeks. I would assume an amount this low can be left off the books for this year, but I am more thinking about next year if I continue to play and do well. I honestly don't even know how this would be reported. I obviously wouldn't get a 1099 from the casino, is it just up to me to be honest and report winnings? From a purely hypothetical standpoint, of course, how the IRS even know that this money exists, especially if I keep it liquid and out of my bank account? Thanks reddit friends. **Edit: After re-reading my post it doessss sounds like I'm trying to get advice on tax evasion. Not my intent. I was really wondering if there was an amount I'd have to hit before having to report. And if I should be receiving any sort of taxable income document from the casino. Thanks again
Are winnings from CS:GO skin gambling sites taxable?
I understand gambling winnings aren't taxed source. I have been gambling with CS:GO Skins for a while now and have accumulated a fair wealth. I'm a UK Tax payer, and was wondering how or if I would have to pay taxes on my gains? I have accumulated thousands of pounds of skins from gambling over the last few months. For those that do not know how CS:GO skin gambling works, in game skins have a real world value. You can bet csgo skins and if you win you receive more skins back. Most of these gambling sites are unregulated because the legal area on this is very grey as you aren't technically gambling with 'money' as a virtual item that has no value. Any advice is helpful.
Yes, this is another tax thread. These are the direct answers I received from my CPA who has 25+ years of experience filing for gamblers, both professional and not. Don't shoot the messenger. Do I report winnings gross or net? Surely net, right? Right!?? Winnings are reported on a gross amount. If you open an app and it shows a ledger of $30,000 winnings, $28,000 bets wagered, Win/Loss $2000, the IRS needs the $30,000 number. The $28,000 gets reported on a Schedule A under gambling losses, and only factors into your net tax liability if you itemize. But isn't sports betting on an app just one long session? I don't pay taxes on every hand of blackjack I win. No. Unfortunately this matter relies on case law, for which the precedent for online gambling is an "every bet is a session" accounting. So if I don't itemize and I have huge gross winnings, that means I could owe thousands in taxes? Yes. If you have thousands in gross winnings and didn't plan to itemize, you will essentially owe taxes on the difference between your standard deduction and your pre-gambling itemized tax amount when switching to an itemized gambling loss deduction. If I report net winnings instead of doing it by the book, what are the odds I get audited? Almost zero. Obviously my CPA didn't advise me to do this, but of the thousands of filings she had done in her career, she has only had 3 audits, and all of them were due to inconsistencies on a Schedule C filed only by professional gamblers. She also said that due to COVID delays, the odds of getting audited are even smaller. Are there any other hidden downsides to having an inflated Adjusted Gross Income when I have gross winnings of tens of thousands of dollars? Yes. Student loan interest deductions and child tax credits go away at certain AGI. On the state tax side, she said certain states don't allow ANY deduction for gambling losses on state taxes. I.e. if you live in IL, you probably just shouldn't ever gamble. Every bet you win comes with a 4.95% tax on gross winnings. If your state doesn't allow gambling loss offsets, there is no limit to what you could owe regardless of your year-end profitability.
Does anybody have any experience with filing Skillz gambling losses? I really need help with this and Skillz support offered no help to me at all. Thanks in advance
For example, let's say I buy $1k worth of bitcoin and send it to a bitcoin gambling site. I win another $1k worth of bitcoin and send all that $2k total of bitcoin to CashApp and sell. If all of this happened within an hr and the price of BTC only went up/down by MAYBE a couple dollars...how is that taxed? Since this bitcoin came out of nowhere from cashapp's perspective, how is capital gains calculated? Will I be taxed on the entire $1k of earnings since there is no "buy" price to compare from the "sell" price? Or instead, will the "buy" price BE the price of BTC when the $2k worth of bitcoin was transferred from the website to cashapp? Idk, its kinda hard to wrap my head around. BTW, I'm in Cali and a student so I'm in the lowest tax bracket for reference. PLZ help !
I am 35 years old, make $56,000 ($231k combined), live in Seattle, and work in higher ed administration
Note: I was technically supposed to post this earlier this week, but noticed that no one was signed up for today (plus I was super busy earlier), so I'm posting a bit late, under a throwaway account! Fair warning: I'm VERY verbose, so this will be long! Section One: Assets and Debt As I mentioned above, I make $56k per year as an administrator in higher education. My husband (K) just got a raise to making $155k per year. He works as a lawyer, has been in the workforce for about 12 years. I won't get into too many details but he works for a small boutique firm, not Biglaw. He also sometimes gets a yearly bonus of around $10k-20k but it's not guaranteed or anything like that. K and I have totally combined finances, so the below numbers are for both of us. I have a humanities PhD but I decided to leave academia and find an alt-ac job. My current position has good work-life balance (I never work past 5 pm), but pays terribly and my university is very badly run. I'm hoping to leave higher education all together in the future and am currently enrolled in a certificate program to try to make a career transition to instructional design. The big elephant in the room is that my husband, K, makes a lot more money than me. When we first met, he was paying off massive amounts of student loans and making much less, and I was debt free with a lot of savings, so we both spent about the same amount. Now he makes 3x what I make and we are both debt-free, so the difference is much more noticeable. We do argue about money sometimes (more in the past), but the reality is that I have a humanities PhD and will likely never out earn him, and he knew that when I married him, lol. Because of all the labor I do around the house and in our lives to support him as he works a much more intense job, I was very clear that I believed we should split our finances equally as soon as we got married. We don't have separate accounts and we generally check in with one another whenever we are planning to spend more than $100. This system works for us for now. I also want to address the question about parental or family support. Although I technically paid all of my own bills since I got my Bachelor's degree, my parents supported me a lot by paying for my flights home to visit at Christmas or in the summer as Xmas presents/birthday presents. My parents also paid for my undergraduate degree (and K's parents paid for his undergraduate degree as well). They also gave us about $15k to pay for our wedding. Finally, my parents recently gave me $20k as an "early inheritance." They told me they plan to do this every year (depending on the stock market). We put this money into a brokerage. I don't consider my parents rich, as they both worked hourly jobs in health care my entire life (as a nurse and respiratory therapist - both with only associate's degrees). We never owned a new car, when we went on vacation we stayed in hostels , and shopped almost exclusively at Goodwill. But they scrimped and saved and now they have over $1 million in a retirement account. So I want to acknowledge my financial privilege in that I came from this kind of background. K's parents are similar. Retirement Balance: $186k (combination of 401k, 403b, 457, 2 Roth IRAs, and taxable brokerage account). Equity: None, we rent. Savings account balance: Approximately $45k. Checking account balance: Right now, around 8k. Credit card debt: Right now, around $3k. But we pay it off each month with our checking account balance. Student loan debt: $0. We finally paid off my husband’s law school loans (around $130k), last year. I didn’t have any student loans from undergrad (parents paid) and my MA & PhD were fully funded. Section Two: Income Income Progression: I’ve been working in my current field for 3 years. I started off making about $53k and got tiny 2% “merit increases” twice. Then in July my payroll title was changed, which triggered a required raise of about $2k. (I am dramatically underpaid). Before my current position, I was in academia. I worked as a visiting assistant professor for one year at my alma mater (made $50k for 9 months of work) and before that I was a graduate student for 7 years. I was paid $18k-21k in stipends each year and my tuition & benefits were covered. Luckily, I lived in a very low cost of living area and this was enough for me to live on without going into debt. I got my PhD in 2017. Before I was a graduate student, I taught English in Japan for three years and made around $36k per year. In high school and college, I had random jobs that provided grocery/spending money, but I was lucky enough to have parents that paid my tuition and my rent in college. I’m currently trying to make a career change (as you will see in my diary) and enrolled in a certificate program which runs from Autumn 2020 to Spring 2021 in order to help with that. Main Job Monthly Take Home: $7,634. This probably seems low relative to our joint income, but we max out our 401k (K) and 403b (me). I work for the state government, which means I’m also eligible for something called a Deferred Compensation Plan (457b). This is basically the same as a 401k but you can withdraw contributions and gains from the account at any age without penalty (of course, you still have to pay taxes). I also max this out, and the limit is the same as a 401k/403b - $19.5k. Also this number is before K’s raise is accounted for. It won’t increase until his end of February paycheck. Other deductions - I have health insurance taken out (about $80 a month for me, K’s firm covers his premiums) and taxes. WA has no state taxes, so it’s only federal taxes. I used to have to pay $50 / month for a bus pass (K's was free), but I don’t pay any longer because I’m working from home during COVID. Final note - the sum I mentioned in the headline includes a variable bonus my husband gets. My base pay is $56k and his is $155k (as of February 1). This year he also got a bonus of $20k, which is set up a bit strangely. About $4k of this was structured as a 3% matching contribution to his 401k and the rest was taxable income. In small law firms, it’s unusual to get any 401k match so this was nice. Side Gig Monthly Take Home: None. Any Other Monthly Income Here: We get some interest from our savings account… like $25 a month. Section Three: Expenses Rent: Rent comes to approximately $2,050 total for a one-bedroom apartment. Rent itself is $1886, then we have pet rent ($25 per month), bicycle parking ($15 a month) and water / sewage / gas, which is usually $120-150 (variable cost). Renters insurance: $157.76, paid annually. $13 a month. Retirement contribution: In addition to the 401k, 403b, and 457, which all come out before taxes, we max out our Roth IRAs. That means $500 each per month per person (for a yearly total of $6k each). As I noted up top, we match out our 401k and 403b (19,500 each) and our 457. My employee also offers a 7.5% match. K's employee offers a 3% match but it is included in his yearly bonus so it's not guaranteed (confusing). Savings contribution: We put $500 per month into our emergency fund. We also put about $860 a month into our “sinking fund,” which covers large and small annual or sporadic purchases such as vacations, gifts, Amazon Prime renewal, car insurance and renters insurance, etc. Investment contribution: $875 per month into a taxable brokerage at Vanguard. In total, we save about 47% of our gross income. We can do this because we keep our housing cost low relative to our high income, we don’t have any debt remaining, we don’t have any kids or parents who need financial support, and we’re very privileged in a lot of ways. We are hoping to FIRE within 10 years. Debt payments: None. Donations: We budget $100 per month for donations, which includes one-time donations as well as some reoccurring donations. My husband does pro bono work as well. I would like to increase this by quite a bit, but I still have a hard time budgeting for donations because I spent 7 years living on approximately $20k a year. To go from that to making more than 10x that amount within 3-4 years is obviously something that I am very privileged for, but it is still hard for me emotionally to comprehend at times. Electric: ~$50-100 (billed every other month) Wifi/Cable/Landline: An extortionate $87.12 for slow internet that only works for Zoom calls about half the time. Do I really live in one of the tech cities of the future? Cellphone: $170 (This includes both service and paying off two new iPhones. We could have paid them off up front, but it was actually cheaper by like $50 to go on a payment plan.) Subscriptions: BritBox ($7.70), Spotify ($16.50), HBOMax ($16.50), We Hate Movies Patreon (my favorite podcast - $8.81). My parents pay for Netflix and my sister pays for Hulu, and we all share. Gym membership: None. K and I both run and do yoga with YouTube videos. Before the pandemic, we went to yoga classes pretty frequently in person. I’d like to do some online synchronous yoga classes but find it hard to make time. Pet expenses: Varies, but I budget $50 per month and also include an emergency fund for my cat’s vet bills in our sinking fund. She’s 11 years old and probably asthmatic, so I know her vet bills are going to increase over time. Car payment / insurance: We own our car outright. Insurance billed yearly is $2,097, about $174 per month. Regular therapy: $0 Paid hobbies: Nothing regular, sporadic language classes and art supplies. Other expenses: Right now I’m doing a certificate to hopefully help with a career change. The total cost for tuition is about $5k and we already saved it up (included in our 'sinking fund') basically through spending less during the pandemic. I’ve paid two quarters so far, and the last quarter (due in March) will be a bit more - about $2.3k. __________ Day 1 Morning: I wake up at 5:30 am. Ever since the pandemic, my sleep schedule has been shot. At first, I was so happy not to have to leave the house at 7:15 for my 45 minute bus commute and I slept in a lot. But the stress (and maybe getting old?) has made me an early riser, no matter how much I try to sleep in. I do value my early mornings with just me, my cat, and my coffee, though. I start work at 8 am and begin by triaging my emails. I have a bunch of deadlines this week, so it’s busier than usual. My job tends to be very seasonal, and sometimes I have a ton of work and sometimes I have none and can work on other longer-term projects. I have a piece of toast for breakfast and place a Whole Foods delivery order for the following day at 10:30 am. We made a meal plan and put everything in the cart the day before ($117.36, including tip). Afternoon: I have my lunch break from noon to 1 pm. It doesn’t really matter when I take my lunch break, since I’m salaried, but the others in my office are hourly so in the before times we used to always close our office during the same time. I have a piece of leftover delivery pizza and some spinach risotto that I made a few days earlier. I also have half a brownie – the last one from a batch I made a few days ago (K gets the other half). He also has leftovers for lunch. I should say at this point that both K and I are lucky enough to have been working almost entirely from home since early March. An area near Seattle was one of the first places to get hit by COVID-19, and my state and both of our employers have been taking it very seriously ever since. Working from home hasn’t always been easy since we live in a 600-square foot apartment. Also, there is a three-story townhouse being built directly next door to us and I can hear the pounding in my dreams at this point. Around 2 pm, I go for a 2-mile run. I feel like some money diarists tend to toss off things like “oh, I went for an easy 7 mile run,” at the drop of a hat, so I want to be clear – running for 2 miles isn’t easy for me; it’s exhausting, annoying, sweaty, and generally gross. Also I am very slow. But it has kept me sane during quarantine. Meanwhile, my husband goes to our local pet store to get an enzymatic cleaner (our cat peed in one of our suitcases… I think it’s probably a lost cause, but it was basically brand new, so worth a try) and special weight-loss cat food. Our cat is an 11-year-old rescue from the Humane Society and she is a chonky girl. We had to sign a waiver when we adopted her, saying that we understood that she was very overweight, lol. Our vet recommended a special diet food, rather than just restricting her intake as we have been doing, so we will give it a try ($78). My husband also stops buy our local wine store and picks up two bottles. We’ve been doing a dry January, so this will be our first drink for a while ($27.53). I have a phone interview scheduled for 4 pm – just a preliminary interview with an internal recruiter. It’s the first ‘corporate’ job interview I’ve ever had, since I’ve been in academia my entire life. I’m trying to make a pivot into instructional design / training and development. I’m just excited to get an interview. It seems to go pretty well, but who knows. They tell me they will probably get back to me by the end of this week. Evening: My husband whips up a random meal of fridge remnants – pesto pasta with sausage and a fridge salad with feta and bell peppers. It’s pretty tasty with a little Sauvignon Blanc. During dinner, we play a card game we call gin rummy, although it bears no resemblance to the actual game. After dinner, I make a chocolate cake with orange buttercream frosting and we watch Cobra Kai. Daily total: $222.89 Day 2 Morning: Up early again, a piece of toast for breakfast (very exciting). We’re out of eggs until our Whole Foods order arrives. I’m working on creating some tedious but necessary spreadsheets this morning. Noon: Our Whole Foods order arrives around noon. Excitement! They’ve given us a half-rotten bag of romaine lettuce and substituted pecans for hazelnuts. I should probably just double mask and go to Trader Joe’s myself (our regular spot, only a 5-minute walk from my apartment). I’m just getting anxious about these new variants. I have leftover meatloaf and spinach risotto again for lunch. Lots of meetings and more organizing spreadsheets in the afternoon. Around 3 pm, I go for my daily ritual - a 20-minute walk around my neighborhood. It’s still raining slightly but I need to get out. Halfway through the walk, I get an email from my apartment manager telling me the apartment will no longer accept debit card payments, direct deposit, or credit card payments for paying rent. In other words, only checks or money orders (?!). Ugh. Our lease is up in 4 months and we will not be renewing our lease. Our last apartment manager was a gambling addict who may have been stealing people’s identities, but by God, he kept things working. Ever since they fired him, this place has been going downhill. Evening: I check my bank statements to update my budget spreadsheet and realize that I have been billed the wrong amount of rent. They actually charged me less than they should have. I don’t trust my apartment manager not to start charging me a late fee or something for this, so I call them up. They are baffled by how to fix this, which you would think would be the one thing you would want to get right, if you’re renting out apartments. K cooks dinner – steak with a Roquefort sauce and glazed brussels sprouts. It’s from a French cookbook we recently bought and it is delicious. I work on classwork for my certificate program while he cooks. After dinner, I do the dishes and buy the 13th season of RuPaul’s Drag Race. I watch the first episode – lots of shocking twists and turns! I’m planning to watch the rest of the episodes together with my younger sister, M ($22.01). Daily total: $22.01 Day 3 Morning: K has an 8 am dentist appointment, so he takes off early. He already paid for the work last month, so there’s no charge. I have a piece of toast for breakfast and get to work checking my emails. It’s 8:20 am and the construction crew building a townhouse next door is blasting mariachi music. I’m glad someone is having fun. At least the sun is coming out. Someone at work has made a critical error, but it wasn’t me, thank God. I was the one who found out about it, but it’s still going to cause a big old headache for me. I’m ready to be done with this job. K and I go for a run so that I can exhaust myself enough to no longer be furious about said careless error. Noon: I have leftover spinach risotto and meatloaf again – exciting. I’m busy at work but frankly, not a lot going on other than that. Still no word about fixing my rent payments. I’m not really willing to pursue this any further at this point. Evening: I start making chili (Turkey Chili from the NY Times) and cornbread (from my new cookbook, Jubilee). K is doing some work on our investments when he announces that, somehow, a transfer was scheduled from our checking account to our savings account of $55k (?!) We obviously don’t have $55k in our checking account, so we start frantically trying to figure out what’s going on. Numerous phone calls later, we still don’t know if that was a hack, if my husband somehow mistakenly scheduled the transfer himself, or if the bank messed it up. Either way, it doesn’t seem like any harm was done since the bank with our checking account just declined the transaction. But it seems really strange and worrisome. We get to work changing the passwords on all of our accounts, just in case it was some kind of hack. After dinner (and chocolate cake), I have a Zoom happy hour with a local friend. We occasionally see each other outside but it’s nice to have a longer chat from the comfort of our living rooms. We both love murder mysteries, so we signed up for a service where a company sends us letters with clues and we try to solve the mystery together. It’s a fun way to stay connected and look forward to something during the pandemic. The service costs about $15 per month, but I paid for it in lump sum for 3 months, so it’s not included in my budget above. I drink some wine and we vent about work (we work at the same place) before getting started on the puzzle. Daily total: $0 Day 4 Morning: I sleep in a bit, which is nice. Get up around 7 am. My parents are both getting their 2nd vaccine today – they’re both in their 70s and I am so relieved. I send my mom a “congratulations on being vaccinated!” text and we chat for a bit. I have leftover cornbread with honey and butter for breakfast – soooo good. Work is not particularly exciting today, but someone sends me a last-minute request for something that does not need to be so urgent. I feel annoyed. Still no word from the interviewers on Monday, and I’m beginning to suspect I wasn’t selected to move forward. Too bad. K pays for a Wordpress website for the year (it’s a work-related website, but sadly his work doesn’t reimburse him). It costs $92.48. Noon: The mariachi music is particularly loud today. I stand out on my balcony in the sun for a while and watch the workers. It’s been interesting seeing a house go up next door in real time, especially since I’m at home all the time. The workers are balancing on the top of the third story wall without, as far as I can see, anything like a safety line. It seems unsafe, but I presume they know what they’re doing. We booked a cabin for the upcoming weekend in the Hood Canal region of Washington to do some hiking and birdwatching. I want to be as safe as possible and not go to any grocery stores or risk spreading COVID in any way while I’m there, so I place another grocery order with Whole Foods just for some special treats for the weekend. The cabin has a small kitchen and a grill, so we’re planning to make a fancy steak salad on Saturday. I order chips and hummus, some fancy cheese and meats, Tate’s cookies (I’ve heard a lot of good things about these), a baguette, and the ingredients for the steak salad. I also order a few staples I forgot in our last order, like sweet potatoes, more coffee, and half and half. It comes to $87.41, including tip, but that does include like $30 worth of steak. For some reason, I can’t order a small amount of steak online, so I’m planning to freeze half of it for later. (I include this purchase in our vacation fund budget, rather than under our regular grocery budget). Around 2 pm, K makes a quick trip to our local wine store to buy an Oregon pinot noir and some port to enjoy at the cabin ($59.45). This store has an outdoor walk-up counter where you can tell the owner what you’re looking for, and he brings you some options (the store is way too small to allow customers to enter during Covid). It’s fun to chat with another human being, even briefly. Evening: After work, we spend a little time rebalancing our investing and retirement accounts. We decide to put more money into bonds and a little bit into REIT’s as a hedge against a potential crash or recession in the future. Then I start making dinner – Broken Eggs (Huevas Rotas) from the NY Times cooking site. You basically cook the potatoes in a skillet in water, spices, and olive oil, and then sauté them to crisp them up once the water evaporates. Then you add onion, lots of garlic, and finally some eggs. It is delicious. I eat it with leftover cornbread while watching RuPaul’s Drag Race season 13 with my sister – we watch the first two episodes. It’s full of twists and turns. A note about this – we have an elaborate procedure for watching shows together developed during quarantine whereby we start the show at the same with an earbud in one ear, while FaceTiming. I also have chocolate cake, of course. Later, I get an email that I’ve signed up for HBO on Amazon Prime. I definitely have not. I text my mom, who shares my account, and she tells me she signed up by mistake. I cancel right away and luckily they won’t charge us for it. Meanwhile, K is doing an online Japanese language class over Zoom. He’s been interested in learning ever since we went to Japan last January. I lived in Japan for 3 years so I was able to take us around to a lot of more obscure places and he really enjoyed the trip – it was a blast. K starts a YouTube yoga class (from Do Yoga With Me – my favorite channel) and I join him for part of it before bed around 10 pm. Daily total: $239.34 Day 5 Morning: I get up around 7 am and we go for a run first thing. I prefer running early in the morning because there are fewer people to avoid during COVID. We do a different route today – it’s longer (3 miles) but has fewer hills. It’s a slog, as always, but I feel good when I get back right around 8 am. I jump straight onto my computer to start checking work emails and my husband makes us avocado and egg toast for breakfast - it is absolutely delicious. We talk about how our bathroom smells distinctly mildewy (yay for being a grown-up because I guess this is what we talk about now) and we buy two big buckets of DampRid on Amazon ($26.60). I’ve found this to be a necessity in Seattle. Mid-morning, I take a break from work and start packing for our trip to the cabin. Noon: I have leftover potatoes and cornbread for lunch, and my husband has the leftover chili. We finish getting ready to leave and head out right after lunch, taking a half day. The only problem is that I have attend a meeting at 3:30 pm, so we head out hoping to get there in time. Our cabin is near Quilcene in the Hood Canal region of Washington, about a 2 hour drive or a 2 hour ferry ride + drive. We are initially planning to take the ferry both ways, but realize that we mistimed the ferry departure, so we drive the whole way instead. Luckily, there’s little traffic mid-day, and we arrive at our Airbnb around 3:00 pm. The Airbnb is beautiful! It’s a small cabin handmade by the owner, whose house is next door. It’s very rural, with a beautiful view. It’s tiny, but has a little kitchen and a waterfall-style shower with river rocks on the floor. It’s a great place to get away for a short time. Luckily, it also has good reception and I’m able to sit in on my meeting with no problems. My husband also does a little work, and then at 5 pm we’re free! In our planning, we decided to get takeout on Friday night, since the little kitchen isn’t designed for any serious cooking. We call ahead to a local restaurant to order burgers (one of only 2 restaurants in the whole town). It’s around 5:30 pm and the place is deserted. It’s a microbrewery, but they tell us they haven’t been making beer since COVID-19 hit. None of the workers are wearing masks when I walk in, but they put them on when they see I’m wearing one. I pick up our order - a few bottled beers and burgers and fries ($49.52 including tip). Back at our Airbnb, we watch Big Trouble in Little China and enjoy our very messy, but delicious, burgers (it costs $4.39 to rent). The movie is very campy but fun. I love silly action movies, as you will see with my other viewing choices. We wrap up the night in a very exciting fashion, eating chocolate cake and watching old episodes of the original Star Trek. Daily total: $80.51 Day 6 Morning & noon: When we wake up around 8 am, the weather is looking thankfully clear and even sunny! We were expecting rain, so we’re really glad. We decide to go hiking today, and we head out before even having breakfast, with snacks and lunches packed. Our first destination is a hike called Mt. Zion, but unfortunately, we run into enough snow 2 miles before the trailhead that we decide to turn back. We don’t have any traction for our Subaru and don’t want to risk getting stuck on a very narrow mountain road. Instead, we drive another hour or so to the Lena Lake trailhead, a very popular and less strenuous trail. It’s about 7.5 miles roundtrip with 1200 feet of elevation gain. By this time, it’s around 11:30, but luckily there is still parking. It’s a great hike up, and we run into relatively few people. We always mask up whenever we pass anyone, as does about 50% of the people we meet. The others… not so much. Around a mile from the lake, we start to run into snow. It’s turned into a beautiful sunny day, and I’m loving seeing all this snow! It’s a bit slippery, but not too bad. We make it to the lake mid-day, and it’s super jammed – there’s only a small viewpoint accessible, so everyone is crowded in there. I feel a bit uneasy with all the unmasked people, but we manage to find a spot away from the crowd and sit down to eat our lunch of apples, chips, and energy bars. There are a ton of robber jays there (Canada Jays) which try to eat our chips. It is fun watching them, but I’m annoyed to see some kids feeding them – it’ll just make them that much more aggressive. Bad trail manners. On our way back down, we get stuck behind a group of 5 unmasked adults, who refuse to cede the narrow trail to faster hikers. I’m a slow hiker myself, so, to be clear, I’m not angry at slower walkers being on the trail but have some self-awareness and let people pass! especially if you’re going to go hiking in a big group during a pandemic! We finally get back down and head back to our Airbnb. Evening: Back home, we explore some of the trails our Airbnb host has set up around his extensive property, and then relax on the deck. The sun is breaking through the clouds and it feels wonderful to sit out in nature and feel the sun on my back. We open up a bottle of wine and have a few pre-dinner snacks (more chips and hummus). For this night, we brought ingredients to make a steak salad. Our Airbnb host has kindly set up a charcoal grill for us, so we grilled the steak and toast some bread on the side. We eat dinner while watching the truly terrible Jean Claude Van Damme movie Bloodsport and finish up the very last of my chocolate cake. It’s amazing that anyone ever let Van Damme act… or should I say ‘act.’ I also have a Tate’s chocolate chip cookie or two, accompanied by a little port. My husband and I are truly very old people at heart, so we finish up the night watching a few episodes of Columbo. Daily total: $0 Day 7 Morning: Unfortunately, K had insomnia last night, so he sleeps in pretty late. I drink coffee in bed and enjoy looking at the view out our big windows. Once he’s up, we get packed up and write a thank you note for our host. It was a great stay. One of my big hobbies is birding and K enjoys wildlife photography, so we go out to look for some lifers! (The first time you see a new species of bird). Did I mention we are very old people in (relatively) young bodies? We first go to Dosewallips State Park and see some bald eagles, great blue herons, lots of various ducks, and a flock of Canada Geese, which, strangely, includes a domesticated gray goose. He’s much larger than the Canada Geese and seems to be watching over them. It’s kind of cute. Unfortunately, a lot of the birds are too far from shore to be seen clearly. Our next stop is Point No Point (I love all the sad & disappointed names that early Westerner explorers gave places in the Washington/Oregon coast), a popular birding spot. We see a ton of birds here, and I can understand why it’s so well-known - Red-Breasted Mergansers, Western Grebes, Common Goldeneyes, Pacific Loons, and a few others I can’t identify yet. Most excitingly though, we see a whole pile of otters! They’re lounging around together on a rock just offshore and a ton of people are watching. We watch as they all slip off the rock and go hunting in the shore. It’s my first otter sighting in the wild, and it’s so cool! We also see some seals and possibly a sea lion. It’s a great spot for wildlife. We eat some snacks (hummus, chips, some sliced meat & cheese) before we head out. I really want to come back to this area another time and explore further, but K has decided that we need to get back home in time for the Big Game. We take the 3:00 pm ferry back to Seattle ($16.40) and get home around 3:45 pm. I veg out at home while my husband watches football. He’s a Patriots fan but he still loves Tom Brady (??) so he’s happy to see Florida win. I don’t understand sports team loyalties at all, but whatever, I’m glad he’s happy. We order from a new Indian place called Spice Box and get vindaloo, roganjosh, and vegetables pakora – so tasty ($53.96). Happily, there’s enough left over for lunch the next day, since I have no plans for what we will eat yet! I’m really dreading work the next day, as I know that it will be obnoxious. I want to get out of my job so badly, but it doesn’t look like I’m going on to the next interview stage for the job I interviewed no back on Monday. I’m feeling kind of down about it. I try to stay positive and promise that I’ll apply for at least 2-3 new jobs next week. I bake up some frozen cookie dough I had in the freezer and feel sorry for myself. We end the night by watching another episode of Columbo. Daily total: 70.36 Food + Drink: $395.23 Fun / Entertainment: $26.40 Home + Health: $26.60 Clothes + Beauty: $0 Transport: $16.40 Other: $170.48 Grand Total: $635.11 I think this week was pretty normal for us. Obviously we spent a bit more than usual due to the weekend cabin trip, but nothing outrageous. Our largest consumer spending category is definitely food and drink – we live in a very busy area of Seattle with tons of restaurants and bars so believe it or not, we actually used to spend even more on eating out. We still try to support our local places by getting takeout or delivery during the pandemic and even occasionally getting a few drinks outside. I spent more than usual on groceries due to stocking up for the weekend away.
For the year according to my sports betting app, my “winnings” are $9K. However, the amount that I’ve bet is $10K, resulting in a net loss of $1K. Assuming I plan on taking the standard deduction and not the itemized deduction, does this mean that I have to include the $9K as income? Or is it just zero since I’ve lost overall? I know when you itemize you can offset your losses against your wins, but it seems absurd to me that if I do the standard deduction that I’d have pay taxes on the 9k of “winnings”.
Edited to ask: Is each session counted as a separate taxable event, as a win or a loss? Or do we take the end of year aggregate total to count as a "win" or "loss"? I tried Googling this, but it is really unclear. I do not intend to file as a professional gambler, I have a job. I also don't plan on playing high stakes, maybe just make around $10-20k a year. As far as I can tell, "winnings" must be reported, and losses aren't reported unless you ITEMIZE deductions, which I don't plan on doing. Does Pokerstars provide an annual tax form? Additionally, poker "winnings" get added your Modified Adjusted Gross Income, but "losses" to not get deducted from your MAGI. In my case, I qualify for an Obamacare subsidy for having a MAGI under a certain number. It looks like I could lose this, even I have a net loss for the year. So let's say I start the year winning 10 sessions in a row, and am up $10k, but I play 10 more sessions and lose $15k. Am I now forced to pay taxes on $10k for the year? Also, are gambling winnings taxed at a different rate? Will they change my tax bracket?
Hi, Throwaway account so not linked to my main account. I've been making a full time living from sports betting for the past 4 years. I'm aware I won't be able to get a mortgage as I don't have a taxable income (you don't pay tax on gambling winnings even if you do it full time). I'm looking at purchasing my first house with my partner this year and am wondering what my options are. I have enough for a 50% house deposit - would it be possible to put 50% in and my partner gets the other 50% mortgage based on her income? If so, will 50% of the house legally be mine, or will it all be hers because she is getting the full mortgage. If I can go down this route, would both me and my partner both still be eligible to use a Lifetime ISA? We've been maxing this for the past couple of years. I do plan on contacting a solicitomortgage advisor soon but wanted to see what my options might be first. Thanks
Hi. Just want to start and say I've already looked in the stickied crypto wiki and did not find my answer(https://www.reddit.com/PersonalFinanceCanada/wiki/cryptocurrencyandtaxes?utm_source=share&utm_medium=ios_app&utm_name=iossmf). This is my situation/question in a nutshell. Let's assume I bought 5 BTC when they were $10,000 CAD for simplicity's sake. This cost me $50,000. I moved this BTC to a crypto gambling site. I gambled with them on this site. I bet 1BTC, lost the bet. I did this three more times and am now left with 1BTC. I gamble this last 1BTC and turn it into 20BTC out of sheer luck. I move these 20BTC off of the gambling site. Let's assume you then sold them and the price had moved to $11,000 in that time. Gambling winnings, so long as they're not your primary source of income, are not taxable in Canada. How does it work when crypto is what you're gambling? I see a few weird situations, but none of them make total sense: You bought 5BTC at $10,000 each for $50,000 total. You sold 20 at $11,000 each for $220,000 total.
Your 5BTC realised $5,000 total capital gains. Your other 15 BTC you won when they were worth $10,000. Since they gained value of $1,000 each since you attained them, even though the crypto winnings themselves aren't taxable, you realised $15,000 taxable. All in all you pay tax on a $20,000 gain and the rest is yours.
You lost 4BTC. You now have a theoretical loss of $40,000. You win 19BTC. You sell similarly to above. You pay tax on $19,000 for the $1,000 value increase since you won the coins. You... claim a loss of $39,000 for the rest? You claim a gain of $1,000 instead of the $39,000 loss?
Gambling winning and loss exemption doesn't count for crypto. You straight up have a gain of $170,000 and need to claim it.
Other possibilities? I'm so confused about this situation. Help? :)
Okay so in canada from what I understand gambling wins are not taxable? So if I win the lottery or go to a casino and win some money I don't get taxed. but in the us gambling wins are taxable? lets say i go to a casino and get some chips and win? Do I have to get chips with an id card and other identification? how in the world would the government know i was gambling and won? does paper work have to be filled out at the casino verifying who i am and then the casino sends in to the government how much i won? very confused on how this all works
Hello everyone! So if you deposit 1000 and get a 1000 sign up bonus and bet the entire 2000 and win 4000 (for arguments sake), is that considered Net taxable Winnings of 3000 or 2000? Also, do sports betting websites issue you 1099 for the total winnings and you have to deduct the losses like gambling? or is it just net profit on the year?
How to Handle Non-Business, Non-Taxable Income from 1099-K on Tax Return
I apologize for multiple posts on this topic, but after scouring Reddit and other boards for an answer, I'm seeing a ton of people with questions and very few answers. I'm hopeful that this post and the helpful folks here at tax can provide some insight to all of us searching for answers. This year, many states (including my state of IL) lowered the threshold for 1099-K reporting. For that reason, sites like PayPal have begun issuing 1099-K's to more people, including people without businesses. Anything that came through as a "payment" was included in the gross amount, even if the item is not taxable. As an example, my 1099-K contains:Total Gross Income: $3,250
eBay Sales of Personal Property Sold at a Loss ("Online Yard Sale"): $1,500 [Nontaxable]
Withdrawal of Funds Deposited to Gambling Sites: $1,000 [Nontaxable]
Withdrawal of Net Gambling Winnings: $500 [Taxable, but I am reporting along with the rest of my gross Gambling Winnings elsewhere on my return]
Ratuken Cashback: $250 [Nontaxable]
(For clarity on items 2 and 3: I deposited $1,000 to a Sportsbook app, won some bets, and withdrew my $1,000 deposit + $500 of the winnings to PayPal. PayPal is showing the full $1,500 as gross income) Do I...
File a Schedule C so that I can include offsetting amounts as Cost of Goods Sold, even though this is not a business?
Or, put the full 1099-K amount under Miscellaneous Income on Schedule 1, and then include the negative offsetting amounts there [ex: $3,250 1099-K, -$1500 nontaxable eBay Sale of Personal Items, -$1,000 nontaxable withdrawal of deposited funds, -$500 reported in full under "Gambling Winnings", -$250 nontaxable rebates]. Am I even allowed to put negative items here?
Draftkings Casino/Sportsbook's Transaction Log/Statement is showing a significant amount of gambling winnings and stakes wagered. However, a big bulk of these numbers was generated from wagers that ended up pushing (ie placing 5 dollars on both red/black in roulette). It would show in the transaction history as Wager: 10 Winnings: 10 I understand that on a whole, gross winnings are taxable income and losses are an itemized deduction. However, on an individual bet basis, is the cost of the wager subtracted from the payout to get the gross winnings? So in this case (pretend this is the only bet), would the winnings put as taxable income be 0 or would I have generated 10 dollars of winnings and 10 dollars of losses? Another example: say I wager 100 dollars and the payout is 1 dollar. Would the numbers for this individual bet be a 99 dollar loss, or a 1 dollar win and a 100 dollar loss. Important distinction for me, as it currently doesn't make sense for me to itemize. I don't know whether I should trust the Bet Winnings/Stakes Wagered numbers in the DK Sportsbook Statement Summary.
Let me just start this off by saying that I've only needed to file taxes once before, and did so with a lot of help. In other words - I'm a bit clueless. So, for the past few months I've been using sports gambling apps - Draftkings, Fanduel, etc. When I research how all of this is taxed, I read that if your winnings are above $600, Draftkings or Fanduel will send you the proper tax documentation in the mail. This is the part where I have many questions, such as:
How does it work if I win, say $400 on Fanduel and $400 on Draftkings? Will they each send me the proper documents or will I need to figure it out on my own?
Is it considered income the moment I win a bet, or the moment I withdraw the money(For example, if I win $800 but only withdraw $300 from my Draftkings account), would that be $300 or $800 in income that I'd need to report?
I also want to note that I do not need to file taxes for any other reason than the gambling winnings this year. If anyone is aware of filing for gambling winnings, is it difficult?
I probably could have found the answer somewhere but frankly i’m overwhelmed at the prospect of having to pay tax on 10–20k winnings. Soo. Over the past 6 months I got into sports betting on an app run for our state. I ‘ve done ok and for some reason had it in my head that I would pay taxes on the “total profit” (Which was only like 1100) as opposed to the summation of all won bets. So My question is to clarify: i have to pay taxes on the sum of all individual winning bets? ( I probably have 50-100 bets usually under 1000 i think i have 1 or two over that) as you might imagine winning 20-100 dollars here and there over a ton of bets really adds up. So I’m sweating ballz here about my tax liability for 2020. Any clarification or help is appreciated. Thanks!
Ronald Reagan is the 73-year-old Republican candidate and the current President. His running mate is current Vice President George Bush.
Walter Mondale is the 56-year-old Democratic candidate and the previous Vice President. His running mate is US Representative from New York Geraldine Ferraro.
Issues and Background
Within a year of taking office, President Reagan signed comprehensive tax reform legislation that exemplified his economic philosophy. The top marginal income rate was cut from 70% to 50%, and the rate on the lowest taxable bracket was reduced from 14% to 11%. The capital gains tax was reduced from 28% of 20%. Legislation in 1982, prompted by increases in the deficit, prevented the full tax cut aspirations of the 1981 legislation from going into effect. Reagan and his supporters credit his economic policies with the strong economic recovery since the beginning of 1983.
The last couple years have seen very large federal budget deficits, with the 1983 peak at a level unseen since immediately following World War II, even relative to GDP. Mondale has chosen to make this arguably his biggest domestic campaign issue. Mondale has argued that the "question of the deficit and getting interest rates down is the most important domestic problem of our time - nothing else compares with it." He has spoken in stark terms about the alleged stakes, saying:
The President's point that growth will cure the deficit is obviously not the case. The deficit will get worse even with growth. Thus it is a very severe problem that threatens our future, saddles our kids with a with a trillion dollars worth of debt, is making us into a debtor nation, is destroying our position in international commerce, driving up interest rates, and is making the budget increasingly unmanageable.
Further, Mondale has gone further in his gambit on making the deficit an election issue by pledging to raise taxes. In his nomination acceptance speech, Mondale said:
Whoever is inaugurated in January, the American people will have to pay Mr. Reagan's bills. The budget will be squeezed. Taxes will go up. And anyone who says they won't is not telling the truth to the American people. I mean business. By the end of my first term, I will reduce the Reagan budget deficit by two-thirds. Let's tell the truth. That must be done - it must be done. Mr. Reagan will raise taxes, and so will I. He won't tell you. I just did.
Specifically, the Mondale deficit reduction plan calls for $85 billion in new tax revenues and $105 billion in cuts in projected spending. The entirety of the new tax revenue is to be earmarked for a special fund to reduce the deficit. Any further new spending will be "pay as you go," requiring new revenue to cover the spending. The planned spending cuts are mostly decreases in the planned growth of spending, including for the military and Medicare, rather than outright cuts.
According to Mondale campaign advisers, a typical family of four with a gross annual income of $25,000 (OOC: ~$62,000 in 2020 dollars, same format for further parentheticals) will not see their taxes go up. However, by 1989, families making $25,000 to $35,000 (~$62,000 to $86,000) will see a tax increase of about $95 (~$200) families making up to $45,000 (~$111,000) will pay roughly $200 (~$500) more and families making $100,000 (~$250,000) will pay about $2,600 (~$6,400) more.
Republicans have of course criticized the Mondale plan sharply. Vice President Bush called it a "program for failure" that would stall the recovery. Reagan insists that deficit reduction must come through economic growth and reductions in wasteful government spending. Reagan describes a tax increase as a "last resort."
Religion and issues of morality have come up several times during this campaign. President Reagan favors a Constitutional amendment that would permit organized prayers in public schools that students can opt-out of. Mondale opposes the amendment. President Reagan also supports a Constitutional amendment banning abortions except when the life of the mother is at risk. Mondale is personally opposed to abortion but believes it should be a woman's individual choice. Mondale's running mate Geraldine Ferraro has received pushback for her statement that, "the President goes around calling himself a good Christian; I don't for a minute believe it," criticizing Reagan's policies as "unfair" and "discriminatory."
In fall 1983, following an internal power struggle in the country and pleas from other Caribbean nations, the United States invaded Grenada alongside several Caribbean nations. The invasion was successful, resulting in the establishment of a new interim government. Elections are intended to take place in the coming months. The Reagan Administration justified the intervention on the basis of protecting US medical students on the island. The UN General Assembly voted 108 to 9 to call the intervention a "flagrant violation of international law." Mondale raised questions about the invasion early on, but in the past couple months has spoken favorably of it.
The United States along with three European nations introduced a peacekeeping force into Lebanon in 1982, in the broader context of the Lebanese Civil War. US diplomatic and military forces have been the victim of a number of suicide bombings, in particular the 1983 bombings of Beirut barracks, killing 241 US military personnel. Mondale has been sharply critical of Reagan with respect to these bombings, arguing that there was plenty of warning to prevent them. Mondale has further argued that overall US policy in Lebanon has been marked by "unbelievable disorganization." In January, Mondale called for the withdrawal of US marines from Lebanon. Reagan argues that the US presence in Lebanon helped facilitate the withdrawal of Palestinian guerrilla fighters.
At no point in his first term thus far has President Reagan met with his Soviet counterpart, Konstantin Chernenko. Mondale has frequently criticized Reagan for this, and has promised he would hold annual summit meetings with Soviet leaders. Reagan has said that he would like a summit, but needs to feel sure it will produce results before it happens. More broadly, Reagan has described the necessary policy towards the Soviet Union as one of "credible deterrence and peaceful competition," though he has also not held back in his criticism of the Soviet Union, calling it just last year an "evil empire."
In 1979, the Sandinista National Liberation Front in Nicaragua overthrew the Somoza dictatorship and established a new government. Since then, counterrevolutionary forces including former pro-Somoza forces as well as disillusioned former Sandinistas, have engaged in armed conflict against the Sandinista government. Reagan cancelled economic aid to Nicaragua upon taking office, but has since said that there have been attempts to get along with the new government. However, Reagan has been sharply critical of Nicaragua's accused military buildup and "meddling" in El Salvador.
Mondale has criticized Reagan's "failed policies" in Central America and has promised that if elected, he would end all US military exercises in Central America, withdraw combat forces from Honduras, and "end the covert activities directed toward Nicaragua."
A CIA booklet became public this October which has raised questions about the nature of US covert activities in Nicaragua. As reported by the New York Times:
A Central Intelligence Agency document that became public this week tells Nicaraguan rebels how to win popular support and gives advice on political assassination, blackmail and mob violence. The 44-page booklet, titled ''Psychological Operations in Guerrilla Warfare,'' is a primer on insurgency. Most activity of this sort in Nicaragua has been paid for by the United States through the C.I.A. The primer explains how to kidnap and kill officials, blow up public buildings and blackmail ordinary citizens.
Ferraro and her husband have come under intense media scrutiny over their financial history, with accusations ranging from tax avoidance to connections to organized crime, pornography, and gambling. In response, the couple has relented in releasing several years of tax returns, and Ferraro has allowed the media hours of her time to ask questions related to her and her husband's finances. Most accusations against them have proven to be exaggerated, though there are still lingering questions regarding certain accounting errors that were made. For more technical details, see coverage by the New York Times or Washington Post.
Particularly following what some considered to be a sub-par first debate performance, some Democrats are openly raising the question of whether Reagan, 73, is too old to continue serving as President. Asked at a White House event whether age should be considered a legitimate issue, Reagan said jokingly of Mondale, "I'll challenge him to an arm-wrestle any time." Reagan's more vigorous second debate performance has led to a diminishing of the age discussion.
In June 1981, the Associated Press and Los Angeles Times reported on a rare lung infection in 5 young previously healthy gay men in Los Angeles. Since then, over 6,000 cases of "acquired immune deficiency syndrome" (AIDS) have been reported to public health officials. In April of this year, the cause of the disease was discovered, a retrovirus known as HTLV-III. According to the CDC, "most cases have been reported among homosexual men with multiple sexual partners, abusers of intravenous drugs, and Haitians, especially those who have entered the country within the past few years." The case fatality rate is extremely high. Scientists say the virus is mainly spread through sexual contact. There were two major developments just recently in October. First, the New York Times reported that saliva may be a possible source of transmission, though it remains unlikely that it is a "key mode of spread." Second, under pressure from Mayor Dianne Feinstein, San Francisco public health officials ordered a number of bathhouses and sex clubs geared towards homosexual men closed. Officials at the Department of Health and Human Services argue that this disease has become a top research priority for them, and that they expect to spend many millions of dollars on research grants and other efforts. However, some groups like the National Gay Task Force have criticized the government sharply and say that not nearly enough is being done. Many criticisms of the government and other institutions and groups of people are covered in the essay from last year famous in the gay community, "1,112 and Counting" by Larry Kramer, published in the New York Native. Neither Reagan nor Mondale have spoken of this disease on the campaign trail. OOC Note: There is no indication that AIDS was an issue in the presidential election. Even gay newspapers from this time did not relate the crisis much if at all to the presidential election. To the extent that government policy was discussed, it was often local policy. Why mention it then? Well, it's a similar situation to Japanese internment and the 1944 election. I know some of you will bring this up no matter what, understandably, and so I'd like to at the very least calibrate the discussion to the year of the election with proper context and background.
Platforms (Important note if this is influencing your vote: These are just excerpts, not everything is included and inclusion of a point in one set of excerpts does NOT mean the other party took the opposing stance or didn't mention it; also, especially in the modern era, a Presidential candidate may disagree with the party platform) Read the full 1984 Republican platform here. 10 Excerpts:
"We reaffirm our conviction that State and local governments closest to the people are the best and most efficient"
"The Republican Party pledges to continue our efforts to lower tax rates, change and modernize the tax system, and eliminate the incentive-destroying effects of graduated tax rates ... We therefore support tax reform that will lead to a fair and simple tax system and believe a modified flat tax—with specific exemptions for such items as mortgage interest—is a most promising approach"
"The President is denied proper control over the federal budget ... To remedy this, we support enhanced authority to prevent wasteful spending, including a line-item veto"
"We need coordination between fiscal and monetary policy, timely information about Fed decisions, and an end to the uncertainties people face in obtaining money and credit ... The Gold Standard may be a useful mechanism for realizing the Federal Reserve's determination to adopt monetary policies needed to sustain price stability"
"The greatest danger today to our international trade is a growing protectionist sentiment"
"The Republican Party has deep concern about gratuitous sex and violence in the entertainment media, both of which contribute to the problem of crime against children and women"
"We Republicans emphasize that there is a profound moral difference between the actions and ideals of Marxist-Leninist regimes and those of democratic governments, and we reject the notions of guilt and apology which animate so much of the foreign policy of the Democratic Party"
"Stable and peaceful relations with the Soviet Union are possible and desirable, but they depend upon the credibility of American strength and determination"
"We ... reaffirm our support for a human life amendment to the Constitution, and we endorse legislation to make clear that the Fourteenth Amendment's protections apply to unborn children"
"We affirm our country's absolute fight to control its borders ... Those desiring to enter must comply with our immigration laws ... Failure to do so not only is an offense to the American people but is fundamentally unjust to those in foreign lands patiently waiting for legal entry ... We will preserve the principle of family reunification"
"Instead of runaway deficits, a Democratic Administration will pursue overall economic policies that sharply reduce deficits, down interest rates, free savings for private investment, prevent another explosion of inflation and put the dollar on a competitive footing"
"We will pursue international negotiations to open markets and eliminate trade restrictions, recognizing that the growth and stability of the Third World depends on its ability to sell its products in international markets"
"The Environmental Protection Agency should receive a budget that exceeds in real dollars the agency's purchasing power when President Reagan took office, since the agency's workload has almost doubled in recent years"
"After four years in which the roll of dishonor in the Administration has grown weekly and monthly—from Richard Allen to Rita Lavelle, from Thomas Reed to James Watt—it is time for an end to the embarrassment of Republican cronyism and malfeasance"
"Violent acts of bigotry, hatred and extremism aimed at women, racial, ethnic and religious minorities, and gay men and lesbians have become an alarmingly common phenomenon ... A Democratic Administration will work vigorously to address, document, and end all such violence"
"In the year made famous by George Orwell, we can see the realization of many of his grimmest prophecies in the totalitarian Soviet state, which has amassed an arsenal of weapons far beyond its defensive needs"
"Sadly, Mr. Reagan has opted for the all too frequent American response to the unrest that has characterized Central America-military assistance ... Over the past 100 years, Panama. Nicaragua, and Honduras have all been occupied by U.S. forces in an effort to suppress indigenous revolutionary movements"
"A Democratic President will pursue a foreign policy that advances basic civil and political rights—freedom of speech, association, thought and religion, the right to leave, freedom of the integrity of the person, and the prohibition of torture, arbitrary detention and cruel, inhuman and degrading treatment—and that seeks as well to attain basic, economic, social, and cultural rights"
"We support tough restraints on the manufacture, transportation, and sale of snub-nosed handguns, which have no legitimate sporting use and are used in a high proportion of violent crimes"
"...the Reagan Administration has acted as if deficits do not count ... The deficits are huge and are expected to get larger—and they are a major negative factor in everything from high interest rates to the third world debt crisis"
I am newly focused on saving for the future. How am I doing? What can I do better?
Hey guys I wanted to get feedback from people who are smarter than me. I'd like to have the option to retire by 55 however I doubt I will because I'm a doer. Here are my details and then I'll go into my plan: Stats: I'm 38. Married. 2 kids. Aged 5 and 2. I have a full time job that last year did just shy of 6 figures and this year will be roughly 122k. Prior to this I was employed by a not so great human who under paid and overworked everyone. My situation has changed and I'm now focused on the future of myself and my family. I expect to maintain a low 6 figure income as long as I remain in this industry/with this employer. My wife is a teacher and does roughly 50k and we get all of our health insurance through her employer since its a better deal than mine. My employer does provide disability insurance for free so that's great. I believe the plan pays 75% for up to 2 years in the case of an incident. Seems like a solid safety net. I also have a side thing that should net me roughly 60k this year and hopefully closer to 90k next year. This doesn't eat up a ton of time so I'm thankful I have been able to create this opportunity. It also allows for some good tax advantages such as writing off some of my expenses. I also am a 30% partner in a start up that so far hasn't made any money but if done well could do great or might end up being a short term expense. I have roughly 40k in emergency savings liquid. The idea there is to be able to make it 6+ months if everything went wrong. Two years ago we upgraded homes and kept our previous home as a rental. We cash flow about $750 a month on that and have roughly 275k in equity in it. I did a cash out refi to get what I originally put as a down payment out so it feels like a zero risk investment. I was also able to get my rate at about 3% too so it was a win win. My primary has a pretty high balance at just under 450k but the payment is totally manageable. We plan to be here forever. We have done most of the work ourselves to make it even better and the only large upcoming expense is a possible detected garage but I'm willing to wait until I have the cash to do that without sacrificing savings or other parts of the plan. Just this year is the first time I've had access to a 401k as my employer just added this as a benefit. I will max it this year along with a modest company match. We also just recently got my wife set up to max her 401k too. We plan to do that as long as possible. My 401k balance is roughly 26k and my wifes is about 18k. I have a TD account with roughly 100k in it with a focus on ETFs and a small amount I "gamble" on individual stocks. We also contribute about 4k a year to each of our kids 529 plans for college. We'd also like to keep that up until the baby birds leave the nest. I expect to have about 100k for each kid when its time to pony up for college. There are also some modest tax benefits for this contribution in my state. We have no debt aside from the two properties we own. The plan: We plan to continue to max our 401Ks until we are no longer able to. For my wife that could be as long as she is working. For me that's as long as I have a day job. If possible I will continue to contribute with with self employment but I don't know what that looks like at this point. Ideally I will be totally self employed within the next two years but who knows where life will go. I also plan to add 1k a week minimum to my TD account to DCA mostly in ETFs with a lofty goal of 2k+ a week when/if possible. My rough math says that if I can do that for the next 17 years I would have roughly 1.2m to 2.7 depending on how well I'm able to max that and how good the returns are. Once our rental apricates to the point I could sell it and pay off my primary after capital gains I would like to do that. My thought here is living mortgage free would allow me to take a little more professional risk without the stress. Sure the money could do more working for me but I think I could do more without the debt. I expect this to take 5 to 10 years. Hopefully closer to 5. We are very aware of lifestyle creep and do not plan to spend more. We are waiting till we drop our daycare expenses to upgrade my wife's car. We'll get something reasonable like a Rav4 for well under a 3rd of the monthly cost of daycare. I plan to drive my car for the next 8+ years. Hopefully more. At some point I would like to pick up a weekend car but it will most certainly be used and I would sacrifice spending in other areas to do so. If I did commit to stopping working at 55 (unlikely as I like to be busy) I would live off the gains from my taxable investment accounts until I hit maturity on my 401k then spend that as needed. If I am able to max my 401k until retirement I would expect to have roughly 1.5m there. My wife is a few years younger than I and she loves teaching so she said she wants to go the distance to max her pension. Her 401k would like be a bit healthier than mine simply due to time and she's 6 years younger than I. What am I missing? Life insurance? Other things I'm not thinking of? Assuming my goals are attainable are my numbers good? We are not spenders but we are travelers, mostly by car as we love the outdoors and live in a part of the western US that is just amazing. I know life is good right now but things could change at any time as it does from time to time. That said I am confident in my skill set and ability to provide. I will also likely be asking for a raise this year for the small company I work for. I have had a large part in nearly doubling our book of business in the last two year so I plan to be a bit aggressive in my compensation requests. Would it be reasonable to request a 10k base pay bump along with a 2m life insurance policy and moving the 401k match from 4% to 10%? Long read but I value feedback from others who are more experienced and smarter than I. Pardon the spelling and other errors, I'm just not that smart.
Do You Have to Pay Taxes on Slot Machine Winnings?
We all love to read stories about big wins and imagine ourselves in the shoes of those winners. But, have you ever thought about what happens at that very moment after successfully beating the slot machine? Usually, the slot machine locks up and, in most cases, you hear the music and see the flashing lights on top of the machine. But one of the first questions every player asks is whether they have to pay taxes on casino winnings? Well, you’re about to find out!
Taxes on Slot Machine Winnings in USA
In the USA, when a lucky player hits a jackpot, there’s the option of receiving the winnings in cash or check. In case it’s a large sum, it’s usually paid by check. However, the IRS only obliges the casinos to report winnings that are larger than $1,200. Of course, all winners are obliged to show a proper identification— a valid ID or passport. When the casino checks for your identification they also look at your age to make sure you are officially and legally old enough to play. As the minimum legal age for gambling varies from state to state, be sure to check it out before you decide to play.
Do I Have to Report All Winnings?
All gambling winnings received from slot machines are subject to federal taxes, and both cash and non-cash winnings (like a car or a vacation) are fully taxable. Apart from slot machines, the same applies to winnings from lottery, bingo, keno, poker or other games of chance. So, if the amount won on a slot machine is higher than $1200, the casino is required to report it. In other words, all your gambling winnings have to be reported on your tax return as "other income" on Schedule 1 (Form 1040), line 8.
Slot Machine Winnings in W-2G Form
In case it happens to you and you snag that big win (which we hope one day you will), it’s useful to know that casino or other payer must give you a W-2G Form, listing your name, address and Social Security number. So, if the winnings are reported through a W-2G Form, federal taxes will be withheld at a rate of 25%. If, however, you didn’t provide your Social Security number (or your Tax Identification Number), in that case the withholding will be 28%. Either way, a copy of your Form W-2G should be issued, showing the amount you won alongside the amount of tax withheld. One copy needs to go to the IRS, as well. Aside from slot winnings, Form W-2G is issued to winners of the following types of gambling activities like:
bingo (for players who win $1,200 or more),
keno (for at least $1,500 worth wins)
poker tournament players (for the $5,000 win or more).
a horse track (if the winnings are 300x your bet)
However, not all gambling winnings are subject to IRS Form W2-G. For instance, W2-G forms are not required for winnings from table games like blackjack, baccarat, and roulette, whatever the amount. You’d still have to report your winnings to the IRS, it’s just you won’t need to do it through W-2G Form.
Are My Slot Losses Deductible?
The good news is that you can deduct your slot losses (line 28 of Schedule A, Form 1040), while the bad news is gambling losses are deductible only up to the amount of your wins. In other words, you can use your losses to compensate for your winnings. So, let’s say you won $200 on one bet, but you lost $400 on one or a few others, you can only deduct the first $200 of losses. Meaning if you didn’t win anything for a year, you won’t be able to deduct any of your gambling losses. In order to prove your losses, you need to keep good records and have suitable documents. So, whenever you lose, keep those losing tickets, cancelled checks and credit slips. Your documentation must include the amount you won or lost, a date and time, type of wager, type of your gambling activity, name of each casino/address of each casino you visited and the location of their gambling business. You may as well list the people who were with you.
Do State and Local Taxes Apply Separately?
Yes, you are required to pay your state or local taxes on your gambling winnings. In case you travel to another state, and snag some huge winning combo there, that other state would want to tax your winnings too. But don’t worry, you won't be taxed twice, as the state where you reside needs to give you a tax credit for the taxes you pay to that other state. Keep in mind though that some states like Connecticut, Massachusetts, and Ohio don't allow gambling losses.
Online Slot Taxes
Whether you usually spin the reels of your favourite casino games in land-based casinos in the US, overseas casinos, or online casinos, all income for the citizens of the US is taxable. As a US citizen, you are required to send Form W2G for all winnings from a slot machine (not reduced by the wager) that equals to or is more than $1,200.
Taxes on Slot Machine Winnings in UK
As a resident of the United Kingdom, your gambling winnings won’t be taxed. Unlike the USA mentioned above, you’ll be allowed to keep whatever it is that you have won and earned in Britain, even in case you are a poker pro. Then again, you won’t be able to deduct any losses you might collect. It doesn’t really matter if you win £5 or £5 million playing online slots, your winnings will be tax-free as long as you reside anywhere in the UK, be that in England, Wales, Northern Ireland or Scotland.
Taxes on Slot Machine Winnings in Canada
If you are a recreational player who lives in Canada, we have good news for you. When it comes to gambling, you don't have to pay taxes as your winnings are totally tax free. According to laws in Canada, gambling activities don’t fall under the category of constant source of income, therefore your winnings will not be taxed. Canadians don't even pay taxes on their lottery winnings. The only exception here are professional gamblers who make a living from betting and are, therefore, obliged to pay taxes. Keep in mind though, this is the current situation - laws in Canada change frequently, which may also include tax laws.
Taxes on Slot Machine Winnings in Australia
In case you reside in Australia and like to visit casinos from time to time, you’ll be happy to find out that your winnings in Australia will not taxed and here are 3 core reasons for that:
Gambling is not treated a profession (it's treated as a hobby)
The government doesn’t see profits from gambling activities as income, but as a result of good luck
The Australian government taxes casino operators and lottery organisers instead.
Of course, taxation varies from state to state.
Taxes on Slot Machine Winnings in New Zealand
Unlike in Australia, where even professional players can claim they are recreational, in New Zealand slot machine winnings (and any other winnings from casino games) are considered taxable income, in case the player has little income from other resources. But, apart from professional gambling, it is very unusual for winnings to be taxed in New Zealand. Most often, gambling is considered recreational and not income, so players can enjoy their gameplay as they do not have to pay taxes on their winnings.
How much do you spend/aim to spend per year in retirement?
I'm admittedly still very new to FIRE, so please forgive any ignorance I may have! I started becoming increasingly interested after learning about leanfire. I don't earn a mega tech salary, but I do save a majority of my income and do not spend lavishly so leanfire seems like an option. Whenever I look up the basics, I usually come across the 4% rule and going with $40,000/year after reaching $1,000,000. Going off of a very rough projection of my expected expenses, that would be a very comfortable lifestyle for me, even in a MCOL area (SoCal). I'm only 23 right now, so I haven't had many years of living on my own. I would doubt that my current expenses would be the same as what I would need in the next few years - let alone in 20+ years when I (hopefully) do retire. (Please see below for an edit with my current income/expenses/investments). With that said, I do keep a meticulously spreadsheet of my expenses, but I still have no idea how I can reasonably estimate what my FIRE number would be. Sure, there will be an immense amount of planning and research that awaits me, but I feel like there will always be some small items I'll leave out or some items for which I wouldn't be able to estimate the cost accurately. Things I can control are obviously what I spend on entertainment, food, travel, and discretionary items. However, it's these two items that worry me most:
Housing - This will be on me to do research and make a decision on where I want to retire, but how do you all reasonably estimate this monthly expense? I do have a soft goal of owning a home, but the astronomical housing prices in my area would definitely throw a wrench in my FIRE plan. Do most of you stay renters forever, or do most of you already have a paid off mortgage by the time you retire? I'm sure you also take into account inflating rent prices, rising property taxes/home insurance?
Health Insurance - I'm currently covered by my employer, so I'm not sure what the costs would be when I do retire. I feel like health insurance would also not remain a static price in the next decades, so how do you decide on what you think you will need for this?
Would love to know what you all spend in retirement (or plan to)! Would also be curious to know if anyone's budget has shifted once they have finally retired! Any general insight would be appreciated as well. ---- EDIT: Really wasn't expecting so many people to reply and share their insight - thank you so much! I figured I should piggyback off this post and share my current income/expenses/investments. Please critique what I have so far and any advice would be very much so appreciated! I'm 23 living in SoCal, making roughly $80,000 as an accountant with a rough net worth of $80,000. My goal is to retire before I hit 40 (ideally 35, but I wouldn't mind a few extra years) with $1,000,000 ($40,000/year). I currently live on less than $15,000/year, but I will probably bump up to $20,000-30,000/year eventually. In my field, my income should increase stably each year (5-7% each year, with 10-25% in promo years that are relatively set). The $40,000/year (4% of $1,000,000) seems very doable for my area and lifestyle.
COL of my suburb isn't high, but housing prices are pretty high for what you get ($600,000 for modest 3 bed/2 baths). May consider purchasing a home with my family, but also depends on plans with my SO.
Currently living with my parents in a very cheap rent-controlled apartment (luckily!). It helps that we are able to share the burden of rent (win-win for all of us). I cover my own groceries and all of our utilities, which admittedly aren't significant costs. However, I plan to move out within the next year or so (will be an additional $400-600/month of expenses).
$1,000 - $1,200 per month in total expenses.
$4,000 per month contributed to retirement/investments (see below)
Account
Amount Invested
Details
401K
$10,000
9% in Traditional (+4% match), 3% in Roth. Invested in VTTSX (Vanguard 2060 Target Date)
Emergency fund that I'm considering investing a chunk of!
To be completely honest, I'm saw the market at a "discount" and hopped right in without a good amount of research and due diligence. I'm now trying to reevaluate my plan and create a more diversified portfolio. I have heard of the three-fund portfolio, but probably won't be investing a huge amount into bonds anytime soon (I'm still young and not risk averse right now). I'm hesitant to invest in international funds because the historic returns look abysmal compared to S&P 500. I know that historic performance does NOT predict future performance, but I haven't been able to convince myself that investing in international funds is right. I guess the US won't stay on top forever, so it helps to diversify and get in on emerging markets? (Any insight on this would be appreciated). I realize that my portfolio has barely any diversification as a majority of the funds hold the same few stocks (Facebook, Apple, Microsoft, Amazon, Alphabet), and I also individually hold a few of these too. My initial Robinhood choices were honestly a gamble (that luckily paid off very well), but I realize that was a poor decision and I sold off anything I don't believe in LT. Should I really just dump all my money into Vanguard US (VTSAX/VFIAX/VTI/VOO) + International (VTIAX/VXUS) and call it a day? Should I max out my 401k before investing in taxable accounts? I've heard of Roth conversions, so would I be able to still use these funds before I hit traditional retirement age?
Gambling winnings are taxable income in Indiana. - Full-year Indiana residents pay tax on all of their gambling winnings, including winnings from riverboats and pari-mutuel horse races (even those winnings from out-of-state sources). - Nonresidents pay tax to Indiana on gambling winnings from Indiana's riverboats and pari-mutuel horse racing tracks. ... Typically, winnings from gambling are not taxable. BUT, there is a caution to this. The winnings of a “professional” gambler are taxable. Whether gambling wins (and losses) are taxable depends on whether a taxpayer is “carrying on a business” of gambling. Your gambling winnings are generally subject to a flat 24% tax. However, for the following sources listed below, gambling winnings over $5,000 will be subject to income tax withholding: Any sweepstakes, lottery, or wagering pool (this can include payments made to the winner (s) of poker tournaments). Although sports betting is prohibited in some states, states like Oregon, Montana, Nevada, and Delaware has made it legal. This has made any winnings gotten from illicit gambling activities taxable. Keeping Gambling Records. The IRS requires you to keep comprehensive records of your bets, returns, and losses. Gambling and lottery winnings income may be determined by taking total winnings and subtracting the total costs of wagers. Costs The cost of wagers during a tax year including amounts paid for lottery tickets, bingo games or cards, raffle tickets, slot machines card allotments, etc. may be deducted from total winnings received during the same tax year. 8 Tax Tips for Gambling Winnings and Losses Whether you're betting on Tom Brady or Patrick Mahomes to win this year's Super Bowl, don't let the IRS beat you at tax time. Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. Gambling Winnings Here’s the truth with gambling taxes: both cash and noncash gambling winnings are fully taxable. What Are Cash Winnings? Cash winnings include money you received from: Lottery payouts; Sweepstakes; Bingo; Raffles; Poker and other games; Keno; Slot machines; Casino winnings; What About Non-Cash Winnings? Your winnings might be noncash — like a vacation or a car. Winnings from gambling can be taxable and should be reported on your tax return. Winnings may be reported on a W2-G. However, if you itemize deductions on the schedule A, then you may deduct gambling losses only up to the amount of the winnings claimed on your tax return. For many of us, gambling means buying the occasional lottery ticket on the way home from work, but the Internal Revenue Service says that casual gambling also includes raffles, casino games, poker, sports betting—and, yes, even fantasy football. When you win, your winnings are taxable income, subject to its own tax rules.
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