Tag Archives: irs

Paying Taxes On Online Poker Winnings

March 29, 2020   Game skill   No comments

Poker winners do attract the tax officials’ eye on them, even though online poker is legal in U.S and many other countries, the government has a share in the winners’ earnings. The IRS or Internal Revenue Service in U.S. is directly responsible for tax law enforcement and collection of taxes from the public.

All U.S citizens are liable or taxable, if they win any online poker game. It is advisable for new poker players to seek the advice of a reputable tax professional before joining the bandwagon of online poker gamers.

Many players believe that online poker websites with foreign addresses do not come under America’s stringent tax rules, but it is not so. American government enforces Federal tax on the global gambling world and its income. So, winning parties have to pay the taxes on the income gained by them through playing online poker games.

Keeping a Track of Online Winnings for Tax Related Issues

It is best for any gambler to maintain a log book with excerpts on their individual gambling activities. Players can find helpful insights on the internet about the exact requirements and Gambling Law U.S.

Some of the salient features are as follows:

o Keeping an accurate record of all online gambling winnings and losses. o Correct date and time entered about the wagers o Full and correct name and address of the gambling location o Names of the playing partners at the venue o The exact amount lost or won by you as a player.

Maintaining Regular Ledger Updates

These records of the losses and wins entered on a daily basis will be sufficient for the IRS while checking your tax liabilities. Thus, as a dutiful law abiding player, you should keep daily records and enter them quickly after the end of every gambling session. Thus, you will never forget the details nor give wrong information to the IRS.

Taking Expert Advice of Tax Professionals

Any reliable and experienced tax professional will be able to guide you as a gambler about the intrinsic rules and regulations involving payment of taxes on online poker room earnings. All gamblers need to be serious about paying their taxes and not take them lightly. For authentic info gamers can also try Russell Fox’s blog on online gambling tax requirements.

Simple Ways to Meet Tax Requirements

Online poker players can always maintain a written log using pocket diary or notepad. It is important to note down the date, time, card room name, other players’ names and the end result. Using a computerized system can also suffice. One must also keep legitimate proof of the receipts, payments and other papers as proof for tax return files.

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Divulging Casino Winning Taxes!

January 31, 2018   Personal game   No comments

Going to casinos is an exciting activity and winnings make it more enjoyable. But your excitement may turn sour when a thing comes to mind that IRS charges 30 percent from part of gambling winning as tax. But do not disappoint because these withheld taxes can be taken back from the IRS in the form if tax refunds.

The U.S.-Canada Income Tax Treaty

Not only locals of United States but also Canadian can also avail the facility of tax refund. Canada and America have an agreement between each other with regard to casino winnings taxes. The treaty between United States and Canada reflects how the taxes of the casino winning should be treated with Canadian citizens. According this treaty thirty percent withheld taxes should be charged from the Canadian citizen, which is based on their gross income from gambling. Adding to this privilege is Article XXII of the same agreement according to which those Canadian locals which are taxed by United States are further entitled to withhold their U.S. source losses against their U.S. source wages. According to this Canadian residents can get Casino tax refunds from the withheld gambling winning tax.

Tax on Gambling

The amount of Casino winning taxes vary depending upon the won amount, it also depends upon the type of casino game and the part of the amount of winnings to the amount of bet. It means that even if you won in a casino game the withheld tax of thirty percent will not be automatically deducted, it is deducted with respect to the ratio between the winnings and losses. Sometimes, your losses exceed from the won amount then there is no winning present to be charged with the tax in the first place. In such situations the IRS requires a report of your earned income to determine how much tax will be charged on the gambling winnings.

The Need to Report

IRS determines whether the winnings need to be charged or not depending upon your losses and winnings. But it is winner’s responsibility to report his winning details to IRS. It pays to be a careful taxpayer and being liable enough to report even the small amount of winnings. It does not mean you have to pay Casino winning taxes if you reporting about the amount of your winnings. You can reduce your tax amount to be charged on gambling winnings with the help of Form 1040 because this form contains all the information of your gambling winnings and losses. Reporting of gambling losses is as important as the reporting of you winnings because IRS charge taxes on the basic of your winnings and losses.


Get Help

Some persons get confused about how to report gambling winnings and losses to IRS. Sometimes every thing looks to be done perfectly but there are possibilities that you may get into problem with government for not being able to submit the correct information about your amount of casino winning taxes. Get remain safe from such tension you need to have a help from the professional. There are many sites which contains all the information about how to deal with the IRS. To save yourself, from problems and later on litigations it is better to get help of professional before filling up the tax forms.

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