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Online Gambling Tax - What Does This Mean For Internet Gambling?

From Steve Johnson.
November 2015.

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.

Many 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. Play mobile casino games at Crazy Vegas

Many 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.

There 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 consequences.

 

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