Gambling related articles
Gambling Tax - What Does This Mean For Internet Gambling?
There are a number of misconceptions related to online
gambling taxes. One such misconception being that
there are no taxes needed for playing with offshore
platforms. In US, any income including income from
gambling is highly taxable. According to Section 61(a),
in US any income, whatever the source is, taxable.
If you think that in case of internet gambling you
don't have to pay any taxes then you are making a
big mistake. Whatever you earn is easily taxable.
On the other hand if you are thinking that the government
cannot trace your income from internet gambling then
you are probably living in a fool's paradise. If the
auditing takes place against you then you are surely
in for some big trouble. In case it's found that you
have evaded taxes willingly then you are highly subject
to severe punishment.
people think that since they don't receive a W-2G,
they have no reason to report their earning from online
gambling. However, this doesn't hold true for online
gambling. Whether you receive paperwork or not if
you are earning something from any source, it can
always be taxed. Though the professional gamblers
have the option of netting their gambling wins, but
it's a must for them to put their earnings on line
21 and get their earnings for itemised deductions
in the Schedule A. This is not subjected to the limitation
of 2% AGI.
gamblers think that as long as they don't have the
money from gambling in their possession the government
possibly cannot tax them. However, the taxation laws
state otherwise. It says that irrespective of having
the income in your possession you are deemed to pay
the taxes since you have earned them. Even if it's
still in the form of chips and not been encased it's
still your income. Further, you have to keep a log
of your sessions and report them when you assign your
winnings and losses to Line 21.
are many such laws that dictate that irrespective
of your online earnings you cannot evade your taxes
and if you try to avoid them then you might face severe
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