Do I have to pay taxes for my winnings

[paul02085]

You read my mind JMD.

 

[chucho]

Bushwhacker has everything tapped, so I would not assume that they dont have access to Neteller, pay spark etc. And don't feel so bad, if you win a million and give half to Bush, you will have spread democracy for 13 seconds in Iraq. If I ever won a large amount, I would do what I always do on perplexing questions and ask myself, "What would Tony Montana do?"

 

[Slotmachine]

In Germany, it's the same. Winnings are not taxed.

Depends on where the gambling takes place. In E.U. countries, lottery (includes casino games and sports betting) winnings are not taxed as long as the lottery takes place in the E.U. If the "lottery" takes place outside the E.U., you gotta pay tax.

Say you play at a Costa Rica based casino, or Lasseters in Australia. Winnings are taxed.

That's why I play in E.U. casinos, Gibraltar included. When you win, you need a certificate from the casino declaring where the lottery took place. There is some dispute over how this is determined (when the company is in Gibraltar, but the server is, say, on the Moon), but I think the determining factor is where the company is registered.

If your certificate says Gibraltar, that's EU, fine, no tax. But you still have to report the income. Of course, if you pay taxes from your Costa Rica winnings, you can deduct your gambling losses for the year.

It's a smart policy IMO. The E.U. encourages us to spend our money within the E.U., keeps the economy going.

As for our brothers and sisters across the pond, I wouldn't personally recommend trying to screw the IRS.....but that's just my opinion. Ending up in a small cell with a rather large guy called Bubba who calls you sweetheart....not my cup o' tea....

Cheers,
SM

 

[GrandMaster]

In the UK, gambling winnings are not taxable, unless you are deemed to be a professional gambler. The origin of your wins is irrelevant.

 

[Slotmachine]

In the UK, gambling winnings are not taxable, unless you are deemed to be a professional gambler. The origin of your wins is irrelevant.

Right...just goes to show that EU policy is not uniform...especially when the UK is concerned.

Proves my earlier post wrong, so please disregard. I know that what I said is true in my country, don't know about the rest of the EU.

The Meister could be safe with his huge Costa Rica winnings in Germany as well


Cheers,
SM

 

[tencardcharlie]

The thing is ..Neteller has your social security so do they report anything?

They don't report anything unless they are asked by the authorities

edit: didn't realize this thread was age-old

 

[jetset]

Interesting report in the Australian press yesterday revealed that WSOP champ for this year Joe Hachem has received a tax directive (he's an Aussie) from the tax department telling him the Aus$ 10 million he won is not taxable as he won it whilst pursuing a hobby as opposed to a professional career.

How's that for a great Christmas present?

 

[cpgator]

Anyone else aware of this or if it is even accurate? I read on another a gambling site quite sometime ago that if your Neteller or Firepay account at anytime during the year reaches a balance of $10,000 or more you must report it as a foreign bank account on some tax form and that this would likely trigger an audit. I'm sorry I don't remember all the details. I thought I bookmarked the site, but I have been unable to find it again. It would never occur to me that Neteller, Firepay or other electronic wallets would be considered other a foreign bank account if your balance raches $10,000. I'm certainly no expert and would appreciate some knowledgeable input. In the meantime, I will continue to keep my balance under the $10,000 just to be safe. Unfortunately for me, that has been pretty easy to do with my luck lately.

 

[Casinomeister]

Anyone else aware of this or if it is even accurate? I read on another a gambling site quite sometime ago that if your Neteller or Firepay account at anytime during the year reaches a balance of $10,000 or more you must report it as a foreign bank account on some tax form and that this would likely trigger an audit. I'm sorry I don't remember all the details. I thought I bookmarked the site, but I have been unable to find it again. It would never occur to me that Neteller, Firepay or other electronic wallets would be considered other a foreign bank account if your balance raches $10,000. I'm certainly no expert and would appreciate some knowledgeable input. In the meantime, I will continue to keep my balance under the $10,000 just to be safe. Unfortunately for me, that has been pretty easy to do with my luck lately.

This sounds like a question for the IRS. They have a toll free number and are really quite helpful 1-800-829-1040. This warrants expert advice and not hearsay on some message board. As for considering Neteller etc. as a foreign bank, I would guess not since it is not used for savings or bill paying and you don't accumulate interest. But on the other hand, it's probably reportable income when you transfer it to your real bank account.

But I don't know - I'm not a tax lawyer.

 

[mattysgirl]

tax on winnings

In nov of 2004 i cashed in 12,000 from vegas7 casino, had it sent via ACH to my bank account. My bank did not blink an eye and so far the Irs has not either...lol

Back when prepaid atm was still a deposit and payment method and my luck was hot...lol i had many 5k trasfers. I have yet to hear from the Irs...lol and god i hope i dont, but sure i can find some losses lol

Another note at a land based casino, if you win over $1000 on a slot machine you get that nice little tax form, but you can sit at the tables and win up to 10k and no form, how messed up is that...lol granted the most i have ever won playing blackjack at a land based in one sitting is 5k but they dont give you an irs form. Maybe they figure you had to work harder for it so no taxes..lol

 

[jsp377]

It's also important to note that according to US tax law, you can't just report your winnings minus your losses, and report that as gross income. All your winning sessions are reported as gross income, and all your losing sessions are potential deductions, maybe. In order to file the losses as itemized deductions, you have to give up your standard deduction ($4,750 for single filers) assuming you haven't done so already. So if you win $10,000 at Casino A, and lose $5,000 at casino B, you're essentially deducting only $250 if you follow the letter of the law.

Also confusing things is that a "session" is ill-defined for this kinds of things, since online gambling didn't exist when the tax code was written. For example, if I'm playing at 32Red and Intercasino at the same time, and win 2 Gs at one while losing the same amount at the other, is that considered one zero-profit session, or two at which I've won and lost $2,000? The law is unclear about this situation.

I don't know about you guys, but I plan on paying taxes on my winnings. Whether or not the IRS knows about it or not, it's still tax evasion not to pay, and if you don't pay for consecutive years carries considerable fines and jail time.

 

[mattysgirl]

taxes

my understadng on winnings and losses at any land based casino or track is this:


Say you win 20k on the trifecta (as a freind of mine did) yes he got that nice tax paper from the track. Save your losers, as you can claim your losses up to your winnings, so in the end you are even and won jack!!! lol

Or say you hit a nice jackpot at your land casino, i am sure the players card you use keeps track of winnings and losses.

Or even better yet i won over 4k betting on the dogs, found me some nice person at the track just waiting to claim my winner for $200, no taxes there for me...lol

As for internet based where is the tax form??? if the irs thinks i am gonna claim any winnings there nuts!!! thats like the part on the tax form that says please claim any income from dealing drugs ect....yeah ok sure...lol

 

[Westland Bowl]

As for internet based where is the tax form??? if the irs thinks i am gonna claim any winnings there nuts!!! thats like the part on the tax form that says please claim any income from dealing drugs ect....yeah ok sure...lol

They might as well say: "While you are at it, claim your income from your wallet stealing, change found on pavement, lunch money your kid (if any) bullied from another kid, your garage sale money, $ eqivalent of the paperclips you unintentionally took from work. (see Volume 432 for a complete list) You should also report any savings from coupons, sales and the like. If any of your possessions like a TV, bike, car, clothes, etc. lasts longer than normal, then report $ eqivalent of what you DIDN'T spend had the said possession wore out at the standard timeframe (see Volumes 754,755,and 756)."

 

[GrandMaster]

Remember, Al Capone was convicted for tax evasion, not for being a gangster.

 

[mattysgirl]

taxes

Does this mean i have to claim the free ham my grocery store gave me for Christmas??? lol