Do I have to pay taxes for my winnings

wonnoting

Dormant account
Joined
May 20, 2005
Location
USA
I wanted to know if I going to have to pay taxes for my winnings. If so is there a way for them not to know about my winnings. I hate to be paying taxes. I have a payspark account and wanted to know if they show up as I have been paid a good amount to pay for taxes. If you know aby infomation about payspark or any other way to not pay taxes for my winnings by a proccesor then please do so.

Sorry if I posted this on the wrong forum if I did please redirect it to the correct forum.
 
Taxes on winnings

Yes, you need to pay taxes on gambling winnings in the USA. If not it would be tax evasion, and you will go prison without any internet access.

The IRS is known to monitor these boards for such activity.

You may offset your winnings with any losses, so go drop your winnings and you will be able to sleep at night.


Buck
 
How can this be true???

THE irs has no control over offshore winnings.
There is no tax form filed.
Hence if I win in Canada, I dont pay taxes. HOw can the US tax money that isn't originated in the US? I know I file when I win in a land based but what do you file with the IRS for online gaming? Do they want a copy of the neteller info?
 
I found this online too~but I always lose more then I win ( I have the proof )

The legalization of Internet gambling may cause states to lose some revenue generated from legalized gambling operations because many gamblers would spend their money online.(15) Moreover, states lose revenue by not being able to tax gamblers who win over the Internet; gamblers who win over the Internet have an incentive not to pay taxes on their winnings because the Internal Revenue Service ("IRS") lacks the resources to track online gamblers.(16)
 
slotchik said:
...gamblers who win over the Internet have an incentive not to pay taxes on their winnings because the Internal Revenue Service ("IRS") lacks the resources to track online gamblers.

And even if they could, what determines your winnings? If you win $1000 and cash $500, then wage and lose the other $500, would that lost $500 count as a win, or a loss?
 
its such a gray area. Thank God, I dont play too much online anymore and my slot card in the land based keeps track of my losings ....
but how does the IRS know how much your winning if you DO online???
With Neteller, you can just withdraw with your ATM card and it's all online....

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

Anyone know about this?
I report my winnings from land based and online but like I said, I always lose equal to or more of that...so it's irrelevant. What about those who win a lot???
 
but Buck, how can the IRS audit you???
If you go and withdrawel the money from Neteller with a debit card???
 
USA tax

slotchik said:
I found this online too~but I always lose more then I win ( I have the proof )

The legalization of Internet gambling may cause states to lose some revenue generated from legalized gambling operations because many gamblers would spend their money online.(15) Moreover, states lose revenue by not being able to tax gamblers who win over the Internet; gamblers who win over the Internet have an incentive not to pay taxes on their winnings because the Internal Revenue Service ("IRS") lacks the resources to track online gamblers.(16)

Good info, the problem is; that this is up to the individual to report. Unreported income is tax evasion and probably the biggest chance of discovery is an audit. If they discover such in an audit they will not deal lightly with the taxpayer.

Hey it is gambling so take a chance and see if you can end up with a roomate/boyfriend named Bubba. :lolup:

Buck
 
For any UK people reading this, note that you don't get taxed on gambling winnings in the UK. They get their 95% in other ways :rolleyes:
 
Simmo! said:
For any UK people reading this, note that you don't get taxed on gambling winnings in the UK. They get their 95% in other ways :rolleyes:
The thing that sucks about us being taxed is....
we're playing with money that is ALREADY taxed ...meaning income tax and state tax. After we cash our paycheck with taxed money and play, they expect us to pay tax AGAIN on what we win.

They suck!
 
Tax USA

slotchik said:
The thing that sucks about us being taxed is....
we're playing with money that is ALREADY taxed ...meaning income tax and state tax. After we cash our paycheck with taxed money and play, they expect us to pay tax AGAIN on what we win.

They suck!

I suggest you leave the USA and gamble your heart out. Maybe Costa Rica?
 
slotchik said:
After we cash our paycheck with taxed money and play, they expect us to pay tax AGAIN on what we win.

Since it's illegal for online casinos to be located within the United States, I don't see how the Internal Revenue Service can force me to pay taxes on winnings. If I gamble at a land casino like Foxwoods or Mohegan Sun, it's a different scenario, and they withold tax on winnings over $1000. If I gamble at a casino based in Gibralter, it would be up to the government of Gibralter to tax my winnings. JMO, YMMV.
 
If you go to Mars and sell condoms to the little green men up there it's still income, and the government wants their cut. Doesn't matter where you made it........ U.S. citizens have to pay up!
 
Simmo! said:
For any UK people reading this, note that you don't get taxed on gambling winnings in the UK. They get their 95% in other ways :rolleyes:
In Germany, it's the same. Winnings are not taxed.

I suggest the US tax payers refer themselves to
You do not have permission to view link Log in or register now.
Everything you need to know is there. As far as I know, ANY money coming in is reportable income. Whether it comes from Vegas, Costa Rica, Lebanon, or Mars, it is reportable. Have fun! :D
 
casinomeister said:
As far as I know, ANY money coming in is reportable income.

According to the IRS web site, that is correct.

The legal status of Internet gambling is currently unsettled. However, any winnings from this type of activity are taxable and must be reported. Wagers made over the Internet may be subject to federal excise tax. For more information on Internet gaming, please refer to the Department of Justice web site.

That sucks! They can't decide if it's legal, but they still want their cut. :what:
 
No matter what way you get paid there is a paper trail and if the IRS wants to find it they will. We here in Canada are taxed to death but not on lottery or casino winnings so nothing needs to be declared and I beleive its the same in the UK and many parts of Europe.
 
"As far as I know, ANY money coming in is reportable income."

this is true, any income whether illegal or not, they want to know, or more like they will know just a matter of time...hehehe...oh well that the IRS for us in the US.
 
What about if someone deposit $500 into a casino gets a 100% bonus beat the bouns wager and win around $3200. You withdraw all the $3200 into neteller. Now you have $3200 into neteller but that $500 was your original money you deposit. So will they recount a new $500 or will they just do $3200 - $500 = $2700 of winnings.

It looks like payspark dont ask for social security number so I dont see how they will tax someone.
 
wonnoting said:
What about if someone deposit $500 into a casino gets a 100% bonus beat the bouns wager and win around $3200. You withdraw all the $3200 into neteller. Now you have $3200 into neteller but that $500 was your original money you deposit. So will they recount a new $500 or will they just do $3200 - $500 = $2700 of winnings.

It looks like payspark dont ask for social security number so I dont see how they will tax someone.

The $500 bonus is considered a "comp" and is taxable as income.

The money won is also taxable as income (in this case I assume you won $2200 and got a $500 bonus for a total gain of $2700). You would be taxed on the $2700, if you have good records.

You are on the honor system when reporting the income since no record is being sent to the IRS, but keep in mind that tax evasion is a felony offense.

The problem during an audit will be that any money deposited into your checking account will be considered income unless you can prove otherwise. So, if you made $50,000 at your job and you had $53,200 deposited into your checking account, that would have to be explained.

Amounts $1000 or less do not have to be reported to anyone by the money changers, so checks cashing stores for smaller amounts might be an option.
 
I know someone who gambled online and won over 100K and never reported it and that was 7 years ago....
I dont know how he got away with that one!
 
slotchik said:
...won over 100K and never reported it and that was 7 years ago....

That took a lot of guts! :eek2:
I can see squirreling a few hundred or a few thousand away from the IRS, but that comes out to close to 3x my annual salary. I doubt I'd get away with not reporting.
 

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