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Tax on winnings

Forum: Horse Racing
Author: [Horse Racing] Topic: Tax on winnings
Goggles-Pisano PM Goggles-Pisano
Joined: Feb 2009
Posts: 2491
 
Goggles-Pisano
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Posted: 7/24/2018 4:07:25 PM
I've been playing ponies on and off since the late 70's when The Meadowlands opened. Lately I've been making small chump change wagers and winning my share of bets. I hit 3 nice scores this year and recall something about taxable winnings being anything 300/1 and above. Is that correct 300/1?
I don't know if a $1 tri box ($6 total) winner paying $300 is taxed or if the math is based on the total bet of $6. ($1,800)
Heres my biggest winners this year
Woodbine 20 cent pick 4 ($4.80 total bet) paid $147.13
Pocono 50 cent tri box ($3.00) paid $736.05
Pocono 50 cent tri box ($3.00) paid $364.70
Oddly enough both Pocono trifect boxs were 5,8,9
Thanks in advance,
GP

AtlantaDavid PM AtlantaDavid
Joined: Jan 2018
Posts: 134
 
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Posted: 7/31/2018 9:39:04 AM

this recently changed

Its 300/1 of total investment into the particular pool on each bet you make --  it used to be 300/1 of the base wager denomination (300/1 of .50 cent in below wager)

Now if you played a .50 cent tri box for total cost of $3   you are good up to $900   (vs $150 in old rule)

New rule is **IRS will consider the inclusion of a bettor's entire investment/bet in a single pari-mutuel pool when determining the amount reported or withheld for tax purposes, as opposed to only the amount wagered (base amount) on the correct result.

So when playing the horses if you like multiple combinations on exotics and multi race wagers try to play them all on one ticket if you can fit that in your budget vs playing many small tickets

This is HUGE for pk 4, 5 and 6 as those come back at over 300/1 on base wager almost every time

Goggles-Pisano PM Goggles-Pisano
Joined: Feb 2009
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Goggles-Pisano
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Posted: 8/6/2018 1:01:15 PM
AD Thanks for the response. You make a great point in adding up ur combo's. Looks like I'm tax free. 
Forum: Horse Racing
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