Taxation Issues: Gambling Gifts & Awards

This session highlights the tax reporting issues associated with gambling income, and gifts received and given. Under current rules, gambling not only includes casino winnings, horse racing, and lotteries but also fantasy sports and online betting. Depending on whether the individual is a casual or professional gambler, the reporting requirements differ. In addition, we will discuss the reporting of gifts by an individual or by a couple and when a gift is excluded from federal taxation.

• Review of tax issues affecting all forms of gambling income.
• Review of the tax issues associated with fantasy sports betting.
• Review of reporting gifts given and received from a person within the U.S. 
• Review of the reporting of gifts received from a person or organization outside the U.S.
• Discuss the gifts that may be excluded from federal income tax.
• Review the rules associated with the receipt of awards.

• Different forms of gambling income.
• Distinguishing between the casual gambler and the professional gambler
• Reporting requirements for each form of gambling income.
• Distinguishing between the withholding requirements for each form of gambling income.
• When are gifts taxable to the receiver and giver of a gift?
• Reporting requirements for the receiver and giver of a gift domestically and internationally.

Individuals assume that they do not need to report gambling amounts won if their overall gambling spending is more than their winnings. Unfortunately, this is not the case. Amounts won are reported income and amounts bet are deductible only if the taxpayer itemizes their deductions. Likewise, a person receiving a gift doesn’t need to report the gift amount, if it is truly a gift, but the person giving the gift may need to report it and pay tax on it.

• Tax preparers.
• Enrolled agents.
• Tax accountants.
• Gamblers.

Tony Curatola is the Joseph F. Ford Professor at Drexel University. His research interests in the area of taxation are focused on individuals, small businesses, and employee benefits.  He has authored over 200 articles in his field and has completed sponsored research for the Louisiana Accounting and Education Foundation and the International Foundation of Employee Benefits Plans.  His findings on the source tax by states have appeared in media such as Forbes, The Washington Post, Wall Street Journal, and The New York Times, to name a few. He is the editor of the tax column for Strategic Finance, author of Interactive education courses for CeriFi (formerly, Thomson Reuters) and until 2020, the Enrolled Agent review course for Surgent CPE. He holds a variety of leadership positions and currently serves as chair emeritus of the IMA Research Foundation. Dr. Curatola earned his B.S. in Accounting ’75 and MBA in Finance ‘77 from Drexel University, M.A. in Accounting ’79 from The Wharton School of the University of Pennsylvania, and Ph.D. in Accounting ‘81 from Texas A&M University.