Online casinos and taxes

[maliboo]

I was wondering how the US Govt will tax my winnings from an online casino? I am playing with an online casino in another country and getting the money either wired or mailed to me? Do I REALLY have to notify the US Govt of my winnings?

[hhcfreebie]

I was wondering how the US Govt will tax my winnings from an online casino? I am playing with an online casino in another country and getting the money either wired or mailed to me? Do I REALLY have to notify the US Govt of my winnings?

They tax it as your regular income.
You don't have to report US Govt unless you are uder autit, which rarely happen. If they do want you to pay the tax, you will have to list all the money you win AND lost. Only the net winning is taxed.
If you ask me, I decide NOT to report this year. If they don't want to protect us, they won't get a penny from me.

[3-7-ace.com]

I think you should pay taxes in your country. Whatever, you shouldn't pay taxes twice

[pokeraddict]

I have a bunch of tax questions and I see the book about taxes for pro gamblers but the internet has obviously changed this. I have 5 digits in bank wires from party poker that I have a concern about among other things. Anyone have a good link for the new online boom? I also do this for a lving and need to declare something for when i buy another house etc.

[GrandMaster]

They tax it as your regular income.
You don't have to report US Govt unless you are uder autit, which rarely happen. If they do want you to pay the tax, you will have to list all the money you win AND lost. Only the net winning is taxed.
If you ask me, I decide NOT to report this year. If they don't want to protect us, they won't get a penny from me.

The situation is more complicated. The winnings count as income, but you can only deduct your losses up to the extent of your winnings as itemized deductions unless you are a professional gambler. If you don't itemize and your losses are less than the standard deduction, you lose out. It is not clearly defined what is considered to be winnings and losses. You should certainly keep very good records. Some courts even took the view that if you bet $5 on blackjack and it pushes, then it should be considered as $5 won and your original stake is lost, and you should record the outcome of every single hand, but other people got away by recording session wins and losses only.