Dear AP players.
I asked one of my professor whether I do have to pay taxes if I win over $10000 from playing blackjack.
He said, if I do not report my winning, I might ended up getting to jail, only to paying fine to be released.
Let me know if this is correct. Thank you.
-According to my knowledge, I am only required to pay taxes when I hit jackpot from slot machine ...
You are expected to report it ANY time you win money playing blackjack, not just $10,000. http://www.irs.gov/taxtopics/tc419.html
The IRS also expects you to keep a diary. You must report all of your winning sessions, and can only take an itemized deduction for your losing sessions (assuming you are not a professional gambler).
The Cash Cow.
The 10k threshold you refer to is the minimum amount cashed in or out in a day to trigger certain reporting requirements. With slots, VP or other machine games, any individual payout of $1200 or more triggers a W-2G, an additional reporting hassle.
To add to what Moo said, if you are not a professional your gambling losses for the year cannot be deducted beyond the extent of your winnings, or, to put it more simply, gambling cannot reduce your non-gambling AGI for a tax year, nor can you count previous years' losses against future years' winnings. A major advantage of incorporating as a professional is the ability to count losses from a given year against subsequent years if you were negative for the full year. It also makes it much harder to the IRS to refuse your deductions of business expenses like hotel stays and gas.
"Wait a minute. How do you beat someone to death with their own skull? That doesn't seem physically possible." "That's what Jimmy kept screaming: 'This doesn't seem physically possible!'"
Answers can be obtained here from tax attorneys and CPAs free. Click here to apply for a free 90 day pass:Originally Posted by stopgambling
https://secure.bj21.com/docs/landing/
US citizens are expected to pay taxes on anything they do anywhere in the world, with a few exceptions. Foreign visitors are expected to pay taxes on their winnings in the US.
Whether you will be tracked down is an entirely different question. I doubt most foreign countries would turn you over to the IRS over a small tax issue. People who have legal issues in the US do get extradited or picked up on layovers at US airports, so I would not recommend messing with the IRS.
Last edited by moo321; 01-09-2013 at 02:41 PM.
The Cash Cow.
It is possible to claim professional gambler status as a self-employed (schedule C) or incorporated (LLC, S corp, C corp) gambler without being a full-time professional. The IRS has a test that they apply. I can't find the rules easily, I'll see if I can find them sometime.
The Cash Cow.
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