Do I have to pay taxes for my winnings

[wonnoting]

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.

 

[buck]

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

 

[slotchik]

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?

 

[slotchik]

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)

 

[Bruce Hamilton]

...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?

 

[slotchik]

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???

 

[buck]

Duplicate

duplicate??

 

[slotchik]

but Buck, how can the IRS audit you???
If you go and withdrawel the money from Neteller with a debit card???

 

[buck]

USA tax

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.

Buck

 

[slotchik]

why is your post there twice?

 

[Simmo!]

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

 

[slotchik]

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

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!

 

[buck]

Tax USA

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]

no, I can go to canada...

 

[Bruce Hamilton]

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.

 

[tim5ny]

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!

 

[The Dude]

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

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

I suggest the US tax payers refer themselves to

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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!

 

[Bruce Hamilton]

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.

 

[jonevegas]

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.

 

[Stilcho]

"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.

 

[wonnoting]

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.

 

[fathead]

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.

 

[slotchik]

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!

 

[Bruce Hamilton]

...won over 100K and never reported it and that was 7 years ago....

That took a lot of guts!
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.

 

[jmdshort]

Of course if the US had the

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, we wouldn't have to worry about this.

 

[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.

 

[The Dude]

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