Will I have to pay taxes on my winnings from gambling online ?
Question by rooshika d: Will I have to pay taxes on my winnings from gambling online ?
I live in the USA , and the online casino I’m going to withdraw my winnings from is located, and licensed in St.Johns Antigua and Barbuda(outside the USA). If I request my winnings from a bank wire transfer, then will I be taxed?
Answer by Alex
Yes, you will. Any money made, whether domestically or in another country ends up being taxed if you live in the US. Hiding the money you earned would be a felony, though.
it does depend on the amount – no you WONT be taxed up front – but its your responsibility to report it as income when you do your taxes.
- dealing with checks and bank wires – there is a paper trail so its in your interest to report all your gambling winnings
keep records of your losses if you have any to deduct from your winnings.
also the amount does come into play – if its under 10k
its probably not going to get you flagged and its a waste of time for the IRS to audit you anyways, but if they do, getting a bank wire it leaves you very little wiggle room to explain where it came from and why you didnt report it
if your not rich or a pro -gambler the amount your taxed on it – is usually 25% tops
so basically its up to you, either be an honest citizen so you dont have to worry about getting caught, or if you choose not to report it and pay taxes on it, you better have a good story in case you do get flagged and the IRS comes knocking!!!
Good Luck:)
ive had some winnings and i can tell you what the web site told me. ”Wether or not you pay taxes is up to you and the laws of your State/Country. However be aware that we (the website) do not report your winnings to the US government”.
if its a lot of money maybe you should just hop a plane over to antigua
You could always move to the UK my friend where winnings from gambling are non-taxable
http://www.beatingtheodds.co.uk/bettingguide.html
Antigua and Barbuda are licensed Internet gambling entities and had made a complaint around to the World Trade Organization about some of the U.S. government’s actions about online gaming. But I am not aware of recent updates in the case but I would say that amount won by you would be taxable. For articles about casino world you can log on to http://www.casinoscorner.com and get latest updates and reviews about top casinos.