Should a professional gambler who file Income Tax as a gambler, report losses & wins from online gambling?

Online gambling is considered an illegal activity, however I feel like I should report my wins and losses in that area just the same as I report them from casinos. Will I get in trouble with the law by admitting that I gamble online (as millions of others do.)
Should a professional gambler who file Income Tax as a gambler, report losses %26amp; wins from online gambling?
I agree with the answers provided above, but with one caveat. Illegal business activities are not allowed to deduct business expenses. So reporting the illegal gambling winnings on a Schedule C would mean that no expenses can be claimed. This would subject the gross winnings (from illegal gambling) to Self-Employment Taxes. This will increase your taxes, and not provide you with the benefit of deductible expenses.





So, I would list this income as gambling winnings, with losses reported on Schedule A as an itemized deduction.





Hope this helps.





William
Reply:The "casino" is required to give you a W-2G if your gambling winnings reach $600.00 or more or if you have any gambling winnings that are subject to Federal income tax. The $600.00 amount is increased to $ 1,200.00 for winnings from bingo or slot machines and to $ 1,500.00 for winning from Keno.





According to the IRS, "you must include your gambling winnings in your income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings."





I think it is important to report all of your income. I don't think you have anything to worry about regarding whether online gambling is considered legal or illegal. You do not have to report the source of your gambling winnings and losses; you just have to report the amounts.
Reply:You should prepare a Schedule C, listing your gains and losses. If you are a Professional gambler, you can deduct transportation, meals, and lodging, when you travel away from home.
Reply:You should report all gambling income. There are different rules applied if you are a professional or non-professional gambler. In both cases you should keep good detailed records. When you report it, state it as gambling income. You do not need to specify that it was from online gambling.





Disclaimer - you should verify all tax advice with a registered tax advisor and/or your CPA. All legal advice from an attorney.