Are bonuses taxable as income in the U.S.?

chop-choi

Dormant account
Gambling winnings, and even non-cash prizes are taxable. On the other hand, things like frequent flyer miles and cash rebates are not taxable, because their cost is included in the price of the good or service purchased. So, where does this leave bonuses?
 

jyde

Dormant account
Taxable. Once you can cash it out it's not a bonus anymore.
You can always discuss if a balance (winnings) in a casino is fully taxable if part of it is a bonus. I'd say you should only count in the money that is actually yours/withdrawable. If you play at Kiss/Giant Vegas you shouldn't count in anything - just deduct your deposit as a loss.
 

spearmaster

RIP Ted
All income is taxable - if you collect any part of the bonus as a payment, you must pay tax on it, plain and simple, just as you would with stock dividends, gambling winnings, even prizes you win (except in cases like this the tax is usually collected up front).
 

Black21Jack

Dormant account
spearmaster said:
All income is taxable - if you collect any part of the bonus as a payment, you must pay tax on it, plain and simple, just as you would with stock dividends, gambling winnings, even prizes you win (except in cases like this the tax is usually collected up front).
Just one of the things that make Canada such a great country, no taxes on winnings, gambling or lottery and it is all lump sum. I win 30 million, I get a cheque for 30 million. Add that to our gun laws and low crime rate and I would not leave here for anything. I have got a question, if you are in the U.S. and win money online how do you claim the taxes on an illegal income. I may be wrong but is it not considered illegal in the U.S. to gamble online?
 

sw2003

Dormant account
Black21Jack said:
Just one of the things that make Canada such a great country, no taxes on winnings, gambling or lottery and it is all lump sum. I win 30 million, I get a cheque for 30 million. Add that to our gun laws and low crime rate and I would not leave here for anything. I have got a question, if you are in the U.S. and win money online how do you claim the taxes on an illegal income. I may be wrong but is it not considered illegal in the U.S. to gamble online?

No they don't take you to jail! If they do that to everyone who gambles online, they have to build more prisons first. The law is pretty murky anyway. They keep trying to pass some laws in Congress but so far they always fall flat.
They only take a percentage just like the rest of your income.
 

spearmaster

RIP Ted
Why does everyone keep saying/thinking it is illegal in the US to gamble online? The only law which covers online gambling of any sort is the Wire Act, which is very explicit in its wording and thus only covers sports betting.

Income of any sort must be reported under US law when you file your tax return, with the exception of alimony and child support. You might not necessarily have to itemize your gambling income (though recommended) - but you still have to report it.
 

lanidar

Dormant account
I can't wait till Monday so that I can call the IRS and tell them how much money I made playing Blackjack online. ;)
 

jyde

Dormant account
lanidar said:
I can't wait till Monday so that I can call the IRS and tell them how much money I made playing Blackjack online. ;)
Don't bother. When I discussed your case with them they had all details.
 

nafanny29

Dormant account
Reading this thread I can say I am VERY glad I live in the UK!!!!

I cant believe you guys gotta keep a track of your wins/losses and report them to the taxman :eek:
 

spearmaster

RIP Ted
Generally, most people don't keep track - which is actually unwise because if you win more than $1250 (I think that's the right number, it might be $1200) at a slot or video poker machine, you will be required to fill out a tax form which you then really have little choice but to submit - so if you don't also keep good track of your losses, you needlessly pay tax on your winnings even if the sum total of your winnings is less than the sum total of your losses.

One good way to do this if you're playing at land-based casinos - if you have a club/comp card, you MIGHT be able to get an itemized list of your wins and losses for the trip.

Not so sure if this will work with table games but the estimate that they record ought to be reasonably sufficient. But with machines they will have more or less an exact record.

If the casino in question refuses to provide this information, you tell them if you cannot offset your taxes with your losses at that casino then you will take your business elsewhere.

They'll probably hand it to you on a silver platter and send you to the airport in a limo... LOL...
 
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snuf419

Dormant account
the landbased casino pays you cash when you cashin (assuming you are not winning a 6 figure sum), how the hell is the government gonna find out if you are not filling out the form or whatever? A player has all the reason claiming they lost, an the government has no reason to doubt that as that' s why casinos are in business.
 

pokeraddict

Webmaster
In the US the # is $1200 on a single hand/pull and there is an automatic W2G. You have the option to have them withhold taxes or pay you cash and you deal with it later. From that point it is best to log your casino visits as losses are now a write off against this win. Now if you run up a machine to anything up to $10,000 and there was not a single win of $1200 then they just pay you and it is your obligation to declare it.
 

bethug

Banned User - Winner of the "<a href="http://www.c
i report all my winning everything over 50000000 i report , any thing less i keep to my self
 
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