winnings?

[JayJay2]

Ive searched on the net but couldnt find any clear answer.
If I am an american citizen and bet on pinnacle, do I have to pay taxes?
If I win 10000$ in vegas, do I have to pay taxes?
If I play on asian bookies, do I have to pay taxes?

If yes, is there any country in the world where there is no tax on bettingrelated winnings?

[big joe 1212]

If you are American you are suppose to pay taxes on gambling winnings, but what the IRS don't know, don't tell them!

[Trucker George]

If yes, is there any country in the world where there is no tax on betting related winnings?

There are a few tax haven countries. Try googling that term and you'll find some info.

[JayJay2]

If you are American you are suppose to pay taxes on gambling winnings, but what the IRS don't know, don't tell them!

How am I supposed to collect the winnings if I dont transfer them to my account and then cash out?
Doing withdrawal with neteller ** and such is not a good idea because the IRS can collect info on all foreign cards that has been used in the country and then find out that that "Hmm we have a card that belongs to mr Jay XXXX and he has been doing withdraws of 1000$ every week from his Moneybooker card".
This has been done before when the IRS has searched for people having money in taxheavens.

[rake922]

How am I supposed to collect the winnings if I dont transfer them to my account and then cash out?
Doing withdrawal with neteller ** and such is not a good idea because the IRS can collect info on all foreign cards that has been used in the country and then find out that that "Hmm we have a card that belongs to mr Jay XXXX and he has been doing withdraws of 1000$ every week from his Moneybooker card".
This has been done before when the IRS has searched for people having money in taxheavens.

This happened to you?

[JayJay2]

I am not talking about hiding my assets. I am talking about countries where gambling/betting is not a taxable income. In some european countries (like Sweden) betting is not being taxed aslong as you play on sites within the EU. Pinnacle/Asian bookies who have higher limits are therefor not included in the taxfree system and tax has to be payed.

There should be a greater amount of countries where gambling is taxfree than panama/isle of man and those kind of small "taxheaven" territories.

[Santo]

Australia/UK also don't tax gambling winnings

[odysseus]

If you are American you are suppose to pay taxes on gambling winnings, but what the IRS don't know, don't tell them!

Serious question guys 'cos I'm curious. If you have to pay tax on winnings, can you offset any losses against earned income?

[Strange Design]

Serious question guys 'cos I'm curious. If you have to pay tax on winnings, can you offset any losses against earned income?

Not in the US. You can only net your gambling losses against your gambling winnings, not against other ordinary income.

[Justin7]

If you are a US Citizen, gambling winnings are considered income no matter where you live. If you're living in country that doesn't tax gambling winnings, you still have to file a US tax return (but you get about an 80k+ deduction if you live the full year abroad). On that return, you should declare gambling winnings.

[durito]

If you are a US Citizen, gambling winnings are considered income no matter where you live. If you're living in country that doesn't tax gambling winnings, you still have to file a US tax return (but you get about an 80k+ deduction if you live the full year abroad). On that return, you should declare gambling winnings.

Wrong. Unearned income (as the irs considers gambling income, investment income, etc.) does not apply to the foreign income exemption.

[Justin7]

Wrong. Unearned income (as the irs considers gambling income, investment income, etc.) does not apply to the foreign income exemption.

Do any serious gamblers file using "gambling winnings", and deducting gambling losses, and getting an AGI over a million every year? No.

If you have a clue tax-wise, there are legal ways to get the foreign income benefit applied to gambling profits.

[BChrisB]

Ive searched on the net but couldnt find any clear answer.
If I am an american citizen and bet on pinnacle, do I have to pay taxes?

How are you an American Citizen and bet at Pinnacle? Is it because you live out of country?

[thespeculator]

canadian gambling winnings are supposed to be tax free ,but that is for windfall one time wins, if you are winning year after year ,then i think they tax you like it is your business

[tachi]

gambling winnings are tax free in the European Union.

[Santo]

Are you sure about that tachi? I remember whilst I was living in Denmark there was a story in the press about a Danish poker player who won a big tournament abroad and was going to lose a good half of it due to Danish taxation laws.

[Eagle1958]

If the US will not legalize offshore gambling, they are not entitled to taxes on winnings. You can't have it both ways.

[alling]

If the US will not legalize offshore gambling, they are not entitled to taxes on winnings. You can't have it both ways.

good point

[Hebodk]

Are you sure about that tachi? I remember whilst I was living in Denmark there was a story in the press about a Danish poker player who won a big tournament abroad and was going to lose a good half of it due to Danish taxation laws.

I'm from Denmark - where did you live?

Was the tournament inside European Union or was the guy unemployed and won the money while being on social support?

[Hareeba!]

If the US will not legalize offshore gambling, they are not entitled to taxes on winnings. You can't have it both ways.

firstly, there seems to be some serious doubt as to whether offshore gambling is illegal

secondly, illegality has never exempted income from tax .. remember Al Capone?

[kkkkk]

as far as i remember this danish guy won 60k euro and paid 28 k euro on taxes.
about paying taxes i also didnt like that, but after i saw in how many countries it became forbidden to bet over Internet, now i prefer to pay taxes. not to mention that i pay 20% charge to BetFair. maybe i have paid over 20k for last 2 years to them as charge, but its better to pay 20% from anything then 0% from nothing

[Justin7]

If the US will not legalize offshore gambling, they are not entitled to taxes on winnings. You can't have it both ways.

The IRS would disagree -- their position is that they are entitled to taxes on any income, whether or not it is legal (although I don't think the IRS has a position on whether offshore gambling is legal for US Citizens).

They have schedules for drug dealers or other criminals to declare "illegal income".

[odysseus]

If the US will not legalize offshore gambling, they are not entitled to taxes on winnings. You can't have it both ways.

I think that whenever it comes to collecting taxes (in any country) they can and will!

[Ruifgalmeida]

Im am from Portugal part of european union, here is not legal or ilegal to gamble on internet, is still a big blank on that matter, so you dont have to declare nothing.

[iamnomad]

Originally Posted by Eagle1958
"If the US will not legalize offshore gambling, they are not entitled to taxes on winnings. You can't have it both ways."

The government always has and always will have it both ways. in the 20s and 30s, gangster al capone made all sorts of money on actions that were illegal. the government finally sent him to jail for failing to pay taxes on his ill-gotten gains, and nothing else.

[tofuman]

Ive searched on the net but couldnt find any clear answer.
If I am an american citizen and bet on pinnacle, do I have to pay taxes?
If I win 10000$ in vegas, do I have to pay taxes?
If I play on asian bookies, do I have to pay taxes?

If yes, is there any country in the world where there is no tax on bettingrelated winnings?

how did you get a pinnacle acct as american citizen?