Superbowl Sunday is perhaps the biggest one day celebration in all of America.  It’s that one day when everyone, from your office secretary to your betting buddies at the local pub, put down some bucks in Superbowl office pools or place bets legally and illegally.  Some are estimating that more than $10 billion will be bet this year on Superbowl Sunday on office pools, football final scores and even what team wins the coin flip. 

Regardless of the gambling venue, bettors are required to report winnings on income-tax returns. How seriously people take this responsibility is anyone’s guess.

It seems that most people don’t really know that they are supposed to report it on their federal income tax return.  According to one H&R Block survey, only one-third of those responding realized gambling winnings are taxable.

If you receive money, prizes or awards like a trip or new car from a lottery, a local raffle, a casino or sports betting, you are supposed to report the winnings as income on Schedule A of your federal-tax return. You could be subject to estimated tax payments on your winnings as well.

If you win an office pool, you technically are supposed to report it.

But the IRS is more concerned about Internet betting, which is easier to track through credit cards. And the most likely time a gambling situation could come to the IRS’ attention is during an audit.

Gambling losses are deductible, but only to the extent you use them to reduce winnings. In other words, you can’t deduct net losses. And if you are deducting losses, the IRS requires an accurate log of your betting.

“The larger gamblers do keep track,” said Taylor, adding that a lot of casinos furnish tracking cards on request.

Here are the Top 10 On the IRS Tax Evasion List:

1. Besides not paying taxes on gambling winnings
2. Not reporting all income from working, investments or unemployment benefits, it’s all income in the eyes of the IRS
3. Reporting children’s investment income is also a problem
4. Not paying the nanny tax
5. Not reporting annual gifts of more than $12,000 ($13,000 in 2009) to any single recipient
6. Claiming charitable deductions for more than the items are worth
7. Exaggerating expense deductions
8. Not filing a tax return
9. Filing an incomplete tax return
10. Claiming an economic-stimulus tax rebate for more than you’re qualified.

Here are three tips you should know about when filing your 2008 income tax. It’s important that you are aware of them now so that you can take action before the 2008 tax year closes (Dec 31, 2008).

Standard Deductions vs. Itemized Deductions
One thing you should know about filing taxes is that it makes sense to compare your standard deductions against your Itemized Deductions.

If your Itemized Deductions exceed the amount of your itemized deductions, you stand a good chance of saving money by itemizing. If your Itemized deductions are slightly lower, try to shift some of your itemized deductions for the following year to the current year. Here is an example:

Let’s say you have the option to pay real estate tax in 2 installations, consider making the payment in 2008 that would normally be paid in the early part of 2009.

Another tip is to do the opposite, if you don’t think you will be able to take advantage of itemizing in 2008, try to shift some of them for the next tax year, This would work if you plan on purchasing a home in 2009 or you could make your annual charitable contributions in January, 2009 instead of December, 2008.

Flexible Spending Accounts
Now is the time to check if you have money left in your Flexible Spending Account. If you do have extra, make some appointments to use it up. If you don’t, you lose the money.

Medical Deductions
You can claim unreimbursed medical expenses that you incur over the year. IRS rules allow you to deduct them only if they exceed 7.5% of your Adjusted Gross Income. If you are close to that level, consider having elective or necessary medical procedures before the end of the year. But make sure to check that it’s among the qualifying deductible expenses.

Adjusted Gross Income (AGI) is a tax payer’s gross income (before taxes) and subtracting allowable IRS deductions. Here are some of the deductions to use when calculating your AGI:

• Certain business expenses of reservists, performing artists, and fee-basis government officials
• Health savings account deductions
• Certain moving expenses
• One-half of self-employment tax
• Penalties on early withdrawal of saving
• Alimony paid
• Deduction for contribution to an Individual Retirement Account (IRA)
• Student Loan interest deduction

But don’t confuse AGI with Itemized Deductions, such as home mortgage interest expense, medical expenses, property taxes, charitable contributions, among others.

Here is a simple calculator to estimate your Adjusted Gross Income