Paying Taxes on your Online Winnings

[PShabi]

I play 5 sessions this year. My results are as follows:

+100
+150
-300
+100
-300

According to the IRS, you add the winning sessions ($350) to your regular annual income.

Then you may deduct your losses up to the amount you won. So, of the $600 in losses, $350 may be deducted.

So, even though you are a net loser overall, you have the ability to see a tax increase that you wouldn't see if you hadn't played at all.

This is because the $350 you add to your income carries the possibility of pushing you into a higher tax bracket. That means they'll tax a greater % of your income, even though you technically didn't have a net gain.

Sucks, huh?