real confused

[<john>]

hi,how do you claim your winnings against your loses?is there any proof of your loses?is it all just what ever you put down?plus claiming your winnings from a sports book is admitting illegal gambling online.someone needs to go into detail and clear this up if it is possible.

please help

[JPet]

A detailed journal with some supporting back-up usually suffices for IRS purposes. ( deposit records, withdrawal records, printed statements from web sites, etc )

If you check IRS instructions, extortion money, etc is taxable. They actually got Al Capone on failure to report illegally obtained income ( they didn't get him for obtaining the income but for not reporting it ).

Nothing should be confusing here. Income, even illegally obtained income, is taxable.

[Jeff]

That's true. Any money earned from say, drug dealing, or any other crime, is taxable. I think I even read about a special tax for drug dealers.