US and Casino Winnings TAX US

ESCJAMIE

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Hi there I no that in USA you have to pay taxes on any gambling wins, And In the casino and a lottery win this is automatacily take off when you win over $1000 or so I think

But how does it work online casinos

do they still get taxed for wins over a certain amount and do the cainos take it off them or do the player have to pay it them selfs when they get the winnings
 

dunover

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You get the tax back from USA casinos, eventually, when you fill a form in if you are non-domiciled in the US.

As officially (aside from about 3 or 4 states) USA technically cannot play online casinos there will be no tax. The ones that do permit it online like New Jersey I don't know, but knowing the USA it would be deducted at source. You have to hope some CM American posters/players live in states where they can legally gamble online, therefore they can answer you better. Maybe should post this on the USA forum? If you like, I can move the thread there to help you get a definite answer?
 

Casinomeister

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When you play online in NJ and win, it should be treated just like if you were in the casino I am guessing. But, we haven't tested this. Normally, if you are a resident of the US, they will withhold tax. If you are NOT a resident, they won't - but you have to prove you aren't. This is the rule for land based.

You can be a non-resident and play in the NJ online casinos - you just have to be in New Jersey while doing so.
 

dreamguardian1

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Hi there I no that in USA you have to pay taxes on any gambling wins, And In the casino and a lottery win this is automatacily take off when you win over $1000 or so I think

But how does it work online casinos

do they still get taxed for wins over a certain amount and do the cainos take it off them or do the player have to pay it them selfs when they get the winnings
Technically its like this
  • $600 or more if the amount is at least 300 times the wager
  • $1,200 or more in winnings from bingo or slot machines
  • $1,500 or more in winnings from keno
  • More than $5,000 in winnings from a poker tournament
  • Any winnings subject to a federal income-tax withholding requirement
NOW that's not telling you how to get around the tax. Just show you paid out more over than year than you won in one shot and you can avoid the tax at end of year (yes atm receipts count)

NOTE: This is ground based Casinos, technically (cough) not allowed to gamble internationally aka internet gaming *yes there are tons of workarounds. So they cannot withoud tax on those AT THIS TIME.

Now for US Land based casinos any winnings over $1200 you have the option of allowing them to take the tax out at the casino OR you pay it at the end of the year. I prefer to just have them give me the money because I can produce enough atm receipts to offset the tax at end of year. IF you win a huge jackpot note I said IF im talking millions and hundreds of thousands they will probably take the tax out of the final check because they usually NEGOTIATE your winnings so you are not taking home millions. (Cheapskates_
 

funnymunny

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I'm guessing OP is specifically referring to online casinos, but to expand on what previous poster has referenced for land-based wins...

If you win >$1,200 in a land-based casino, the machine locks & attendants are alerted to what they call a "Jackpot Win". (see example from my recent trip here). If you hold a UK passport, tell the casino staff & request they fill out a 1042-S form - this entitles you to your full winnings / ensures no taxes are retained by the casino (as there's an agreement between US & UK governments about taxes of their residents whilst visiting each others countries. (Yes, this means you will have to show them your passport as proof of your nationality, but if you don't they are legally obliged to withhold taxes (which I believe is ~25%!)).

Best thing I can advise if you are playing at a US land-based casino is to join their players club - they take a copy of your ID there and then (so you don't have to carry your passport around with you), makes staff A LOT more friendly / helpful when you get big wins, and not only do you get cashback for your wagering (with no play-through), but also discounted meals and accommodation at any of their properties.
 

Casinomeister

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I'm guessing OP is specifically referring to online casinos, but to expand on what previous poster has referenced for land-based wins...

If you win >$1,200 in a land-based casino, the machine locks & attendants are alerted to what they call a "Jackpot Win". (see example from my recent trip here). If you hold a UK passport, tell the casino staff & request they fill out a 1042-S form - this entitles you to your full winnings / ensures no taxes are retained by the casino (as there's an agreement between US & UK governments about taxes of their residents whilst visiting each others countries. (Yes, this means you will have to show them your passport as proof of your nationality, but if you don't they are legally obliged to withhold taxes (which I believe is ~25%!)).
Same thing with me. I am a US citizen, but my residency is Germany and I pay German taxes - but required to file US taxes every year, and I get credit for the taxes I pay in Germany. When in Vegas, I have to make sure I carry my passport with me in case I get a "hand pay". I fill out the same form after a lengthy explanation.

As for the online casinos in New Jersey, I am not sure how they deal with this. You don't have to be a resident of that State to play - only physically there in NJ. So you could be visiting from the UK, play, win big, and....?
 

dionysus

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and further to that on what Bryan said, when I lived and worked overseas, I didn't pay taxes for either (my employer likely had to, but was a no-harm, no-foul for me in Canada) and when I gambled in the US, no taxes either side, but I'm gathering, it's been been years, that's changed
 

Casinomeister

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US gets you for life no matter where you live. You have to file every year - even though you can get credit for taxes paid, the US gov can f*&^ you good. You're required to claim your income and if you pay less tax % in your adopted country, you have to pay the difference in to the IRS. Biggest scam ever.

So if you are a US citizen, don't dream on moving to the Bahamas thinking you're not going to pay any taxes. You're effed.
 

dunover

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US gets you for life no matter where you live. You have to file every year - even though you can get credit for taxes paid, the US gov can f*&^ you good. You're required to claim your income and if you pay less tax % in your adopted country, you have to pay the difference in to the IRS. Biggest scam ever.

So if you are a US citizen, don't dream on moving to the Bahamas thinking you're not going to pay any taxes. You're effed.
LOL...that's what the British do.
 

Beverly72

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When you play online in NJ and win, it should be treated just like if you were in the casino I am guessing. But, we haven't tested this. Normally, if you are a resident of the US, they will withhold tax. If you are NOT a resident, they won't - but you have to prove you aren't. This is the rule for land based.

You can be a non-resident and play in the NJ online casinos - you just have to be in New Jersey while doing so.
Yes ur right u have to be in New Jersey to play New Jersey online casinos. I regularly play RTG slots. I cashed out in cool cat for $2200. I asked about taxes and I was told by the representative that I would be responsible for them. However, he also told me when I am paid it is going to show up as a refund not a win. Again, I’m in the US. I’m sure there’s a way for the government to know I won. I would never try to get one over on the IRS they’re likely to come back in 10 years and attach my wages or tax return!
 

dreamguardian1

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Note on this most other posts are totally correct, BUT if you play in an online casino outside US Jurisdiction that takes us players, there is no way for government to track your winnings. So essentially you are free and clear (FOR RIGHT NOW). Note that its risky but for some of us financially worth it.
 

mrhowwoll

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Note on this most other posts are totally correct, BUT if you play in an online casino outside US Jurisdiction that takes us players, there is no way for government to track your winnings. So essentially you are free and clear (FOR RIGHT NOW). Note that its risky but for some of us financially worth it.
Has always been risky and I'm surprised irs hasn't come there for taxes yet
 

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