[omega]

Is it legal to gamble online in Texas and if I win big, do I have to pay taxes?

I've been using primarily Bovada and doing fairly well, but am not sure about the legality and if the feds can come after me. I know they can see my bank statements when I deposit my payouts.

Also, do I have to pay taxes on my winnings? If so, how do I do it? Don't want to get in legal trouble. Thanks.

[Hareeba!]

Is it legal to gamble online in Texas and if I win big, do I have to pay taxes?

I've been using primarily Bovada and doing fairly well, but am not sure about the legality and if the feds can come after me. I know they can see my bank statements when I deposit my payouts.

Also, do I have to pay taxes on my winnings? If so, how do I do it? Don't want to get in legal trouble. Thanks.

Don't think it's illegal but certainly yes you are obliged to declare your winnings.

[Redondo]

you have to be a major baller depositing excess of 10K monthly to worry about being audited. even then it's not likely but possible.

[grantingyou]

You should declare all income.

[rangerz2478]

How much are we talking here? If you have a couple hundred dollar transactions I wouldn't worry about it. But if you have 5 figures constantly coming in and out then yes, you should be declaring something. But I assume by the fact you are talking Bovada, it's on the smaller side.

[relaaxx]

You should declare all income.

illegal not to declare all income. deposit $500 - withdraw $1000 - claim $500 winnings as income.

[ApricotSinner32]

Most of us are losing year in and year out so there shouldn't be much worry about declaring winnings.

[jjgold]

Only if you're doing real large bank wires it'll draw red flags if not you're fine

[relaaxx]

if you are just trying to get away without paying taxes - that's one think - legally you should claim ALL income. ALL INCOME.

[omega]

How much are we talking here? If you have a couple hundred dollar transactions I wouldn't worry about it. But if you have 5 figures constantly coming in and out then yes, you should be declaring something. But I assume by the fact you are talking Bovada, it's on the smaller side.

Say hypothetically I was doing 4 to 5 figures a month. Where would I declare it on the tax form?

And are you saying Bovada isn't good for that kind of volume? Who would you suggest if I am doing serious volume?

[brownsfan]

You declare it when you file your yearly taxes.

[John Dough]

Say hypothetically I was doing 4 to 5 figures a month. Where would I declare it on the tax form?

And are you saying Bovada isn't good for that kind of volume? Who would you suggest if I am doing serious volume?

1. You're not going to make that much.
2. Consult a tax professional, not an anonymous internet forum.
3. You're not going to make that much.

[Redondo]

It's just flat out stupid to report gambling winnings unless it's at a level that will have the potenial to gain attention as JJ said with large bank wires. If you win 100K at a blackjack table you don't have to report that, you only need to need to report winnings that are over a 1200/1 payout. If you report anything else you're a jackass that hates your money.

[Hareeba!]

... If you win 100K at a blackjack table you don't have to report that, you only need to need to report winnings that are over a 1200/1 payout. ....

If you are a US taxpayer I believe this is 100% bullshit.

[Redondo]

If you are a US taxpayer I believe this is 100% bullshit.

the obilagation would be a moral one, not something that is documented by the casino and reported on their end. Of course you're supposed to report it.

[dirtdog52658]

If you are a US taxpayer I believe this is 100% bullshit.

The 1200/1 your talking about is actually 300/1. If you hit something with greater odds than this the casino is obligated to take the tax out of your winnings right there on the spot. Anything less you are expected to declare. US Tax laws are written as a win/win for the government, if you lose you can't declare losses as deductions but if you win they want their part.

Also if you cash for more than 10k there is a form for the IRS that you need to fill out because more than 10k is exchanging hands. Even if they are not taxing you right there on the spot.

[Hareeba!]

The 1200/1 your talking about is actually 300/1. If you hit something with greater odds than this the casino is obligated to take the tax out of your winnings right there on the spot. Anything less you are expected to declare. US Tax laws are written as a win/win for the government, if you lose you can't declare losses as deductions but if you win they want their part.

Also if you cash for more than 10k there is a form for the IRS that you need to fill out because more than 10k is exchanging hands. Even if they are not taxing you right there on the spot.

Whatever.
Reporting and withholding are a separate issue.
Declaring winnings is what I was referring to.

[bigballa]

dont you U.S boys get sent checks from these places???? i am in a different country and i thought the feds had clamped down on these places wiring over cash money and just sent checks......must be thinking of somewhere else......

[NYER5680]

Just declare winnings, and pay your taxes. Nobody will ever bother you.

[bullock]

If it wouldn't be legal, you shouldn't pay taxes. Otherwise it's mostly up to you, depends on amount.

[John Dough]

If it wouldn't be legal, you shouldn't pay taxes. Otherwise it's mostly up to you, depends on amount.

Legal or not, it's 100% without a doubt illegal to not declare ANY income in the U.S. Anyone who chooses to commit tax evasion, well, that's up to them.

As expected, the answers in this thread are pretty terrible, which is why the OP should be asking a tax professional, not an internet forum.

[bullock]

BTW how does it work with Vegas winnings? You have to declare them, but it's tax free?

[Hareeba!]

BTW how does it work with Vegas winnings? You have to declare them, but it's tax free?

What makes you say they're tax free?

Winnings are defined as income in the US regardless of where they are derived?

[Redondo]

What makes you say they're tax free?

Winnings are defined as income in the US regardless of where they are derived?

so if you won 3 grand playing blackjack, you personally would report that on your taxes?

[PAULYPOKER]

Only if you're doing real large bank wires it'll draw red flags if not you're fine

This x 10fold

[relaaxx]

so if you won 3 grand playing blackjack, you personally would report that on your taxes?

if during the year of 2013 you won $3000 playing blackjack then legally you are require to report the $3000 as income when you do your 2013 tax returns before april 15th of 2014. the IRS expects you to report every penny of income. all income. even income that may not even be taxed, maybe due to certain deductions or credits. tax returns are very complicated but this part is easy - the IRS wants ALL income reported.

[PAULYPOKER]

if during the year of 2013 you won $3000 playing blackjack then legally you are require to report the $3000 as income when you do your 2013 tax returns before april 15th of 2014. the IRS expects you to report every penny of income. all income. even income that may not even be taxed, maybe due to certain deductions or credits. tax returns are very complicated but this part is easy - the IRS wants ALL income reported.

Sniff sniff,


I smell fukkin bacon..

[Hareeba!]

so if you won 3 grand playing blackjack, you personally would report that on your taxes?

My point simply is that the income is required to be declared.
Whether you choose to abide by the law or risk the consequences of not is a different issue.
Personally I do.
But fortunately I live in a country where gambling is legal and generally speaking, not assessable to income tax.

[John Dough]

Sniff sniff,


I smell fukkin bacon..

Because he correctly understands basic tax laws? Uh, ok.

[PAULYPOKER]

I plead the 5th..........

Uh,ok.

[dww123]

Do you want to give more money to an entity that has managed to get itself 17 trillion in debt? you might as well just throw the amount you owe out your car window. Or better yet, give it to your favorite charity.

[NhlMan]

I know that Professionals Poker players dont pay taxes in Canada but they pay taxes in USA. Betting on sports i think its the same thing....

[Scooter]

It's just flat out stupid to report gambling winnings unless it's at a level that will have the potenial to gain attention as JJ said with large bank wires. If you win 100K at a blackjack table you don't have to report that, you only need to need to report winnings that are over a 1200/1 payout. If you report anything else you're a jackass that hates your money.

Questions re: USA taxes on gambling income bring out the biggest and most ignorant idiots every time, with the most hellaciously wrong answers and advice.
It never fails.

[rangerz2478]

Questions re: USA taxes on gambling income bring out the biggest and most ignorant idiots every time, with the most hellaciously wrong answers and advice.
It never fails.

Lol so true.

[Scooter]

Lol so true.

Hareeba lives very far from the USA, and he realized Redondo's info was bs.