I have deposited about $950 into an online gambling website over the past few months and have won and requested payouts that add up to $1300, with the most being a $550 payout. So overall I am up $350....I was just wondering if I need to pay taxes on the winnings. Thanks
Do you HAVE to? No There is no reporting between any offshore gaming site and the IRS. Depending on how you received your payout may also influence this. Your bank will only report to the IRS if you have deposits in the 10K range. I wouldn't worry about it personally, but you are required by law to report all of your worldwide income. The income would actually be $1300, and the $950 would be an expense. Please note that I am not an accountant or a lawyer and this answer is merely my personal opinion and is not to be construed as legal advice in any way. ..
IRS requires a flat 30% tax on all gambling winnings.
You need to check your gambling site's Terms of Service Agreement and see if they report any payouts to the IRS.
You should also check with your bank to see what their policy is on deposits made to your account and if they report any to the IRS. If they do, it's probably over $2000. It's possible that they report any deposits made from gambling sites. By law, they must tell you if they do.
If you are reporting any gambling income on your taxes, it's best to report all of them. If you get audited, you don't want that $350 causing you a lot of problems.
I wouldn't worry about it unless it was huge amount....the major poker sites aren't going to go out of their way to tell on you...but if it is a habit that you win all the time you should consider reporting it...but don't forget to keep track of all your losses to cause in some countries you can claim your gambling losses against your wins....and if you play alot and aren't winning alot then you will likely not be that much ahead come tax season....here is a great poker site with bonus codes and strategy... http://www.winpokercash.com they also have an article in the strategy section on "online poker Earnings"
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