Paying taxes on gambling winnings

#1 October 18th, 2019, 4:54 PM

Let's just say that everything I'm about to say is just a hypothetical or that I'm asking for a friend Paying taxes on gambling winnings

. Imagine that I've won over the threshold amount of 5k in gambling winnings and that I'm an American citizen. The IRS requires such an individual to pay taxes on those winnings but what I've noticed is that there are multiple options on how to file those taxes, such as self-employment, which I believe reduces the amount you have to pay from 24% to 15%. With that being said, what is the best way to minimize the amount of taxes you have to pay on winnings?

Secondly, let's say I won that amount in a country where you don't have to pay taxes on your gambling winnings such as the UK which also has a unique tax treaty with the US. Would being a resident or citizen of that country (whilst also being an American) make you exempt from paying taxes on gambling wins?

Paying taxes on gambling winnings

#2 October 18th, 2019, 5:04 PM

You pay taxes to your State. Thus helping him! I consider it a pride to pay tax. And there is nothing terrible in is that you won $1,000 and give tax $250. I think it's fair! After all this state, your house! Consider you're giving tax to your house! And just to share with the State I think it's cool. The fact that the state provides you with all sorts of different services!

#3 October 29th, 2019, 10:32 AM

Very interesting question. If you are american, play in another country and win i do not see way somebody in USA to understand how you earned these money abroad. If they are below certain amount (i don't know how big it is for USA) you should be able to bring the cash back home without problems. If you exceed that you should declare the money and pay taxes but again i do not see reason not to tell something else than gambling to the authorities as source of these funds so that you pay less taxes.

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Paying taxes on gambling winnings

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