Gambling related articles
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.
Article index
Note: Opinions expressed in the 'Articles' section of
Smartgambler are those of the guest authors and are not implicitly
endorsed by the owners of Smartgambler.
Home|FAQs|Disclaimer|Contact
Us
©2000 to present.
OZmium Pty Ltd. All rights reserved
