From: Montague, CA

Dear TaxMama,

I won over $10,000.00 last year gambling.

Now they say I need to pay estimated taxes quarterly of $443.00. I'm not likely to win like this again, do I have to pay these?

Marty

 

 

 

Gee Marty,

You're a big winner. Don't you think your luck will hold? No really? OK, then, no, you don't need to make those estimated payments.

All you need to do to avoid an underpayment penalty next year, is make sure that you don't have a balance due.

Incidentally, didn't you have a lot of losses to deduct from those winnings? Your lottery tickets and other funds used for gambling are deductible on Schedule A - if you itemize.

Best wishes,

Best Wishes,
Eva Rosenberg, MBA, EA