Taxes question

Hey guys,

I am going to canada for the first time at the end of this month for the WPT.

I know Canada does not tax gambling winnings, but what happens to Americans playing there?

Is there any "record" to be found? I imagine there is. I am sure you can't win the WPT for 800k and just come back to the USA and have it in your account.

Has anyone here ever won big over seas and came back? What was the process?

Thanks!

Carl Trooper said:

Hey guys,

I am going to Canada for the first time at the end of this month for the WPT.

I know Canada does not tax gambling winnings, but what happens to Americans playing there?

Is there any "record" to be found? I imagine there is. I am sure you can't win the WPT for 800k and just come back to the USA and have it in your account.

Has anyone here ever won big over seas and came back? What was the process?

Thanks!

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Just my thought to look at it in the opposite way I know someone from canada got on wheel of fortune in the US and they were taxed on their winnings, so would it not work the opposite whereby if you win the Money in Canada then you shouldn't be taxed on it? Obv I'm not sure and hopefully someone else can provide further info for you, but just my take on it that I don't think you would but perhaps the US government would be greedy and still want a share lol.

yep don't think it gets reported but tax law requires you to pay taxes on income even if it was earned abroad.

I would say yes, You have to report all income it doesn't matter if you won money while in Canada or while on the moon if you are going to live in the US Uncle Sam wants his cut so my advice is if you win life changing money become a Canadian citizen.

I'm not 100% sure but im 70% sure

In America, gambling falls under "capital gains"

So if you make alot, you pay alot. Can be up to 40% in some parts of the country (if you win over 400,000 USD).

S3mper said:

if you win life changing money become a Canadian citizen.

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[ ] would work

hackmeplz said:

[ ] would work

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lol

worth a shot right?

On a serious note where would the best place to live that allows poker both live and online, doesn't have taxes, has low crime rate, preferably low living expense but is a beautiful place to live like the Cayman Islands..

So basically what I'm asking is where is paradise at?

Oh it also has to be a place where Americans can own property such as houses

S3mper said:

lol

worth a shot right?

On a serious note where would the best place to live that allows poker both live and online, doesn't have taxes, has low crime rate, preferably low living expense but is a beautiful place to live like the Cayman Islands..

So basically what I'm asking is where is paradise at?

Oh it also has to be a place where Americans can own property such as houses

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Paradise in newfoundland of course, can't really say its cheap to live property wise as been getting very expensive but people are friendly, crime rate is low, winters are kinda nasty but can be worse. No tornados, earthquakes etc. Play online everywhere, live options are somewhat limited however as no casino but lots of games if you know where to find them that can win lots of monies lol.

pretty sure the rule is even if you denounce American citizenship you still have to pay US income taxes for the next 3 years or something? Or you could just move to a country with no extradition treaty with the US but then gl on it being a better standard of living lol.

Do you have to denounce your American citizenship? If I'm no longer residing in the US I shouldn't have to pay US taxes that sounds dumb.. Its like it cost money to be an American..

I think of taxes as a way to pay people to fix the roads pay police, firefighters etc and to pay for the soldiers keeping America safe.. I don't think of it as a label tax

United said:

In America, gambling falls under "capital gains"

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Actually it falls under gambling winnings (or losses, but only to the extent that you have winnings those losses can offset). In America, you'll get a form like a w-2 from the entity that organized the tournament if the winnings are over a certain amount. I think it may be as low as $600. This form is called a 1099-G. The "G" stands for gambling. I don't feel like firing up my software to verify it but I think this is taxed like any other income if I remember correctly. It can bump you into a higher tax bracket which means any previous withholdings may be insufficient.

Carl Trooper said:

Hey guys,

I am going to Canada for the first time at the end of this month for the WPT.

I know Canada does not tax gambling winnings, but what happens to Americans playing there?

Is there any "record" to be found? I imagine there is. I am sure you can't win the WPT for 800k and just come back to the USA and have it in your account.

Has anyone here ever won big over seas and came back? What was the process?

Thanks!

Click to expand...

You would have to declare any money over a certain amount if you brought cash across the border. I'm sure a quick google search could tell you how much that amount is. In the US, any transaction where cash in excess of $10,000 is exchanged must be reported to the Federal Government. So if you were to have it wired into your account, your financial institution would be required to report it.

hobonc said:

You would have to declare any money over a certain amount if you brought cash across the border. I'm sure a quick google search could tell you how much that amount is. In the US, any transaction where cash in excess of $10,000 is exchanged must be reported to the Federal Government. So if you were to have it wired into your account, your financial institution would be required to report it.

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That I am familiar with, but I was thinking along the lines of something like this..

Lets say I make a deep run and net a score of say 50k.

Does the USA know I received 50k from the tournament in Canada?

When I won over 20k in Vegas in a wsop event, they immediately hand you the paperwork for taxes.

I am wondering if you took a score for say 50, wired 40k to the bank and had 10k cash, does the government look the other way or are they trying to verify you only won 40?

Carl Trooper said:

That I am familiar with, but I was thinking along the lines of something like this..

Lets say I make a deep run and net a score of say 50k.

Does the USA know I received 50k from the tournament in Canada?

When I won over 20k in Vegas in a WSOP event, they immediately hand you the paperwork for taxes.

I am wondering if you took a score for say 50, wired 40k to the bank and had 10k cash, does the government look the other way or are they trying to verify you only won 40?

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I'm guessing the WPT will be reporting the winnings to the US government as the US government likely requires they do so. I say this because the WPT holds events in the US. Again, this is just a guess.

Yes, close nations tend to cooperate on things like taxes. I don't see you winning a large haul in Canada and getting away with not filing taxes.

Bottom line: As a US taxpayer, you are required by law to report all income, gambling or otherwise, earned anywhere in the world. Period. We're not going to condone discussions of how to cheat on your taxes.

Lol greedy son of bucks I wont be mad when they get greedy with ps though but im sure that ps will be having the upper hand if anything goes down with taxing em

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