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[QUOTE="zippyhippyca, post: 1064893, member: 45832"]
I am US and this is my take of US filing law.
Getting away from the ethical and moral implications of whether or not you should pay taxes, MY understanding is this....any income derived from any gambling activity has a mandatory filing obligation. As stated earlier you would file a form 1040. If your winnings is over $600 (in any single year) the paying party is obligated to report your winnings to the IRS and send you a Form 1099G for filing purposes.([URL]http://www.irs.gov/newsroom/article/0,,id=172190,00.html[/URL]). If you itemize, you may deduct any losses that were incurred on the road to your winnings. As far as Pro or hobby is concerned, ANY business endeavor that LOSES money for 3 of past 5 years (including current) is considered by the IRS as a hobby([URL]http://www.irs.gov/newsroom/article/0,,id=169490,00.html[/URL]). Now whats the difference? If you are pro....ALL business deductions apply. If hobby ONLY provable losses to gain the taxable winnings apply. Check out included links.
                               Zippy
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