IRS reminds taxpayers that they have to report any income from crime, such as dealing drugs

[left-of-center2012]

The IRS doesn’t want you to forget to include income from dealing illegal drugs or stolen property on your tax forms this year.

“Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity,” the IRS’ website states.

The list was created to help those preparing their 2021 tax returns. It also mentions stolen property — unless it’s returned to the owner.

“If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year,” the website states

.
Other income includes bribes.

“If you receive a bribe, include it in your income,” it read.

The list also includes a number of other items, including gambling winnings and more.

https://www.pennlive.com/nation-world/2021/12/irs-reminds-taxpayers-that-they-have-to-report-any-income-from-crime-such-as-dealing-drugs.html

[Walleye]

1. Not fair. I can't deduct my weed money as an expense

[underpants]

6. 😆😆😆

🌲

[jimfields33]

2. I guess gambling includes scratch offs and power ball winnings.

I always thought up to 1200 didn’t have to be added. Maybe it does. I won probably 525 dollars on scratch offs this previous year 2021. I may add it just to be safe. You do get to deduct what you spent up the the winnings. It’s not a wash but close.

[SCantiGOP]

3. It doesn't get reported unless it's over a certain amount

I think it varies state by state, usually a few thousand dollars.

[jimfields33]

4. Thank you.

Quite frankly the IRS rules are to convoluted. There has to be a way to simplify them. I’m sure that will never happen.

[madville]

5. In Florida there's no record of anything $599 and below

That’s the amount that can be claimed at the retailer. Prizes of $600 and above have to be claimed at a lottery office and paperwork done, anything $5000 and over they withhold 24% federal tax.

I rarely buy scratch-offs but it is a good idea to save all non-winning lottery tickets or document any casino loses for deductions just in case you win a prize large enough to have to worry about putting it on your taxes.

The vast majority of people winning prizes less than $600 are probably not net winners for the year anyway so even bothering to figure out if any tax is owed is most likely a waste of time.

[jimfields33]

7. Thank you so much for this.

I don’t expect to win a huge amount, but your thoughts on keeping receipts makes perfect sense. I’m going to keep them from now on.

[Haggard Celine]

8. When I worked in casinos, some of the machines

paid a jackpot of $1199. People liked playing those because it was just under the amount where it was required to pay federal income tax. I think the state still got their cut, but I'm not sure. I don't know if the rules have changed about jackpot amounts and federal taxes. There has probably been a requirement all along for people to report those winnings on their taxes, but most people ignored it because there wasn't a paper trail to prove they'd won anything.

[brewens]

9. I won a Christmas prize on a radio contest one time and almost killed the DJ when I asked

what the cash value was so I could report it on my taxes. I gave him a pretty god Ned Flanders impression and he laughed his ass off!

[underpants]

10. That's funny.

[BootinUp]

11. Im sure this trick will work on at least a few masterminds. nt

[sop]

12. Looks like the IRS and the DEA got together and cooked up a sting operation.

[Iggo]

13. This is my favorite part.

“The list was created to help those preparing their 2021 tax returns.”

It’s to make sure every crime is a federal crime, kids.

[Baked Potato]

14. Good for secondary charges for perps like the Rat King himself. Nt

[ProfessorGAC]

15. No Fair!

They didn't tell Al Capone this ahead of time!

[DFW]

16. When declaring proceeds from a bank robbery

Are you allowed to deduct the cost of weapons, ammunition and the getaway car? Can you list paid accomplices as dependents?

(Asking for a friend)

[MaryMagdaline]

17. Good to know

Thanks

[lastlib]

18. This is partly how they got Al Capone--

tax evasion. He didn't report his income from illegal activity.

[durablend]

19. Unless you're a Republican or named Trump

In which case, they just look the other way....

[gldstwmn]

20. Bless their heart.

[Hekate]

21. AKA the Al Capone Memorial Page of your IRS booklet