Are Gambling Winning Subject to Self Employment taxes?
I received a 1099 From my gambling winnings which is in excess of $5,000 and I was concerned whether or not I have to pay self-employment taxes on that amount. Could you please clarify this for me.
Fortunately for you, Gambling winnings are not subject to Self-employment taxes despite being reported on Form 1099. They are subject to ordinary income tax and added to your regular income as miscellaneous income not subject to Self Employment taxes.
Don't forget to deduct to your gambling losses on Scheduel A. You can deduct gambling losses to the extent of gambling winnings.
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