Taxes

[chop-choi]

The general consensus seems to be that both bonuses and winnings are taxable. The question now is, how to avoid paying these taxes that Uncle Sam claims he's entitled to.

If you get EFT's from Neteller, I think you need to declare everything, as it is so easy to trace. If you get audited, they're going to want to see all of your bank records and such, which will reveal the amount withdrawn and the amout deposited. Getting a check and depositing it into your account is just as obvious.

Perhaps using a Neteller debit card would be o.k. Since Neteller isn't based in the U.S., I don't think they would report anything to the I.R.S. The I.R.S. might monitor ATM activity through other ways, such as reviewing the ATM company's records, but I doubt it. The problem here is that Neteller's debit card has mad fees.

Another way might be to have Neteller send you a check, cash that check at a friend's business, and have him deposit it in his business's account. It would probably be difficult for the IRS to trace the check back to you.

Any other ideas?

 

[Black21Jack]

The general consensus seems to be that both bonuses and winnings are taxable. The question now is, how to avoid paying these taxes that Uncle Sam claims he's entitled to.

If you get EFT's from Neteller, I think you need to declare everything, as it is so easy to trace. If you get audited, they're going to want to see all of your bank records and such, which will reveal the amount withdrawn and the am out deposited. Getting a check and depositing it into your account is just as obvious.

Perhaps using a Neteller debit card would be o.k. Since Neteller isn't based in the U.S., I don't think they would report anything to the I.R.S. The I.R.S. might monitor ATM activity through other ways, such as reviewing the ATM company's records, but I doubt it. The problem here is that Neteller's debit card has mad fees.

Another way might be to have Neteller send you a check, cash that check at a friend's business, and have him deposit it in his business's account. It would probably be difficult for the IRS to trace the check back to you.

Any other ideas?

When I first started gambling online I was not aware of Canada's laws on online gambling, and whether it was a taxable income here. To be safe I opened a non interest bearing U.S. bank account out of Buffalo NY, and received a Visa check card/debit card. I had my Neteller linked to this bank account and transferred all winnings to it. The money never entered Canada. This way I could swipe my debit card like a Visa credit card here in Canada, with no fees and all purchases were at the current exchange rate. Maybe look into opening an international bank account that uses these kind of debit cards, we don't have them here in Canada. Maybe a European bank or something.

 

[bo_ho]

I don't think that you'll find any help from this board avoiding taxes in the U.S.
I'm not a legal expert, but I think the ideas you're throwing around would all be considered felonies and could easily land you and any U.S. citizen who assisted you in Federal Pound me in the #$$ Prison

That being said, what does the IRS consider a win for tax purposes?

1) Play one $10 hand of blackjack, win and leave.
2) Over a year, gamble online 1000 sessions/100 days/lose $1000 but with a fair share of small winning sessions over that time.
3) Gambling profit over the course of a year.

Any thoughts?

 

[jerseyguy11]

well first of all, how can you declare taxes on "illegal" gambling. I mean, its pretty clear that all governments are saying online gambling is illegal, yet players take the position that its done offshore.

I remember a new article that regarded online-taxes. The congress had to pass a special law regarding taxing any sales over the internet. I think that this is relatively the same concept. I dont think any tax law in the US can be applied to income from offshore casinos.

 

[jerseyguy11]

also, i didnt think blackjack was taxed. I know if you go to atlantic city/vegas, and you win 10,000 playing blackjack, its considered won in seperate bets (each hand is considered a seperate win, just under the minimum win to be taxed). Now if you win 10,000 on one pull of the slot machine, its taxable.

So making a distinction on whether you won on tables or slots in an online casino would be extremely hard for the IRS, wouldnt it?

 

[spearmaster]

I remember a new article that regarded online-taxes. The congress had to pass a special law regarding taxing any sales over the internet. I think that this is relatively the same concept. I dont think any tax law in the US can be applied to income from offshore casinos.

You are missing the point entirely.

The US government may not be able to tax the offshore casinos.
The US government may not be able to tax the activity of online gambling.
But the US government CAN, and DOES, by LAW, tax ALL of your income, legal or illegal.

If you don't agree - call your tax lawyer. I am 200% certain he will tell you the same thing.

To answer the other question, the IRS would normally tax you on your net income for the fiscal year. From that you can obviously deduct any tax that you paid on single wins over $1200 as described elsewhere. If you lose, you probably won't be able to write much, if any, of the amount off - but if you win, you pay tax - so keep track of your losses as well.

 

[GrandMaster]

also, i didnt think blackjack was taxed. I know if you go to atlantic city/vegas, and you win 10,000 playing blackjack, its considered won in seperate bets (each hand is considered a seperate win, just under the minimum win to be taxed). Now if you win 10,000 on one pull of the slot machine, its taxable.

So making a distinction on whether you won on tables or slots in an online casino would be extremely hard for the IRS, wouldnt it?

Gambling winnings are always taxable, but the taxes are easy to evade as long as there is no paper trail. It is a very screwed up system, you have to declare your winnings as income, then you may be able to deduct your losses as itemized deductions up the amount of your winnings, unless you are professional gambler. If you did not itemize already, you could end up paying more in taxes even if you lost, EITC and IRA deductions could be affected, too.

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