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Reminder: Your Super Bowl Gambling Winnings Are Taxable

So it’s the Monday after the Super Bowl and most of you are suffering from some kind of hangover. Whether it was caused by food, booze or you’re simply wallowing in a lack of a Peyton Manning comeback, this day should really be a national holiday (even non-football fans can agree on that notion).

Melancholy, indigestion and cocktail flues aside, the other certainty that comes with the SB is gambling. And we’re not talking friendly-poker-game gambling, we’re talking recklessly wagering on every single aspect of the biggest spectacle in sports gambling.


Two of the most creative wagers we’ve seen so far was the betting on rating for the Focus on the Family (featuring Tim Tebow and Mamma Tebow!) ad and the betting the spread between Kim Kardashian’s measurements and Reggie Bush’s rushing and receiving production. Both of which are completely ridiculous, yet sheer genius.

Regardless of where you put your money yesterday (we took the overs on Archie Manning appearances and lost), there are plenty of big winners from yesterday’s game. And now that we have a government who is feverishly trying to close a deficit gap, the question remains: will the IRS more aggressively pursue taxpayers for their unreported gambling winnings?

If you’re a degenerate loser than this obviously doesn’t apply to you but if you’re lucky enough to find some extra scratch in your pocket, you’re legally obligated to report that income next year.

Our government is looking for solutions anywhere possible, so it’s entirely possible that you could find yourself on the wrong end of an IRS-issued shotgun if you’re leaving your winnings off next year’s 1040. Look, it’s not that crazy and the pols need all the ideas they can get. You’ve been warned.

Gerri Willis Doesn’t Care What A Couple of Old Men Think About Tax Cuts

In case you haven’t heard, there’s a bit of a debate over what to do about the expiring Bush tax cuts. And because it’s an election year, they make for a perfect political pigskin to throw around.

Fox Business Network is marking this momentous occasion with Taxed to Death Week (a demise that we do wish for our worst enemies) and wons to Gerri Willis of the Willis Report.

Going Concern: Tax cuts are a pretty popular way for politicians to pander to their constituents. It seems pretty convenient that they are set to expire right after the mid-term elections. Who should we blame for this?

Gerri Willis: There are plenty of people to blame – George W. Bush put them into place way back in ’01 and ‘03 and we knew way back then they had an expiration date – so take yer choices, there are plenty of politicians to point the finger at.


GC: And God knows Americans need someone to blame. Since Congress let the estate tax expire, is there a real risk that the tax cuts could expire without any action?

GW: Sure, it’s actually the easiest action to take because it requires absolutely no effort on the part of anybody – Congress doesn’t have to do anything. The President doesn’t even have to pick up a pen to sign the bill. They could all just dither until midnight December 31. Whoosh! Tax hikes.

GC: Just like tornadoes in Brooklyn. And that’s not good for anybody. Anyway, there’s a lot of information and misinformation out there with regard to the tax cuts. Can we safely assume that objectivity is taking a back seat to political gain and Americans are at the mercy of the rich and powerful (who, incidentally, are the ones greatest affected by the ultimate outcome)? How can Americans know what’s really going to happen? How can accountants best sort through all the noise to best serve their clients?

GW: Surprise! Politics are involved – of course they are, but Americans aren’t stooges. There are plenty of places to get objective information on the tax cuts. I’d suggest Fox Business and The Willis Report. Frankly there is no way for accountants or anyone else to know what is going to happen – Congress is really holding us hostage – my financial advisor sources say nobody is going on vacation in December because they know that something can happen anytime that will change the landscape.

GC: Here’s something strange – Warren Buffet has indicated that he’s in favor of eliminating tax cuts for the wealthiest Americans. Alan Greenspan is in favor of letting all the tax cuts expire. So we have one of the richest people in the world saying he’s willing to pay more taxes and the former head of the Federal Reserve saying that everyone should pay more taxes. Generally speaking, these are smart guys. Are they onto something or is this a sign that we need to start ignoring everything that old men say?

GW: Okay, to be fair here there is wealthy and then there is wealthy, right? $250,000 in San Francisco or LA or NYC is not the same thing as $250,000 in Omaha or Comanche TX. And, Greenspan simply continues to try to resurrect his reputation which was harmed by the mortgage meltdown.

GC: Ultimately though, the one thing Congress agrees on is that tax cuts for the middle class should stay and the big debate is whether the wealthy get a short extension on their cuts or a “permanent” (although it’s not really permanent) one. But do rich people really need an additional moderately-priced BMW?

GW: Heehee. Maybe they won’t buy a BMW – maybe they’ll hire someone! The thing for the middle class to know is that it isn’t just your income taxes at stake – there are a handful of beloved middle class tax credits at stake too – write-offs for college loan interest; child tax credit; and of course there is no AMT patch yet this year – if that doesn’t come to pass tens of thousands of Americans could owe AMT — a tragedy.