One common question comes from online casino players is that whether they are going to pay their taxes or not in playing casino games. These are the common confusion many gamblers are dealing with. So, to start it depends on the gambling law that a particular country has specifically in managing an taxes from online casinos. But not all winnings are automatically taxed by the government. But it is always a player’s responsibility to understand everything about laws that are related to gambling so that they will be aware of how their country deducts money from their winnings. Here are the common processes that occur when getting a tax from online casinos and players. In many countries around the globe, especially the USA, it is mandatory for a player to submit or share something from her/his winnings. Sometimes, it reaches to the highest rate which is 50%, the lowest is 30%. You are obliged to declare your money or else you will be questioned if they track your money in their audit.
Every player is required to declare their money if they win from playing online casino games to the IRS (Internal Revenue Service’s) whether it is offset by losses or not. Though the fact still remains that online casinos specifically from U.S. do not declare the amount of your winnings, and of course the federal law do not know if you win or lose, you still have the obligation to follow the law and declare it in your own because at the end, you will still end up explaining to the IRS where your money comes from because they will track your money through their audit. If you are a big time or the what they call high roller player and choose to declare and pay your online casino tax, it will be reported as other income on U.S. tax returns. The only exemption is that you are only required to declare and pay online casino tax if and only if you win big and you can try this out. It considers big if you win 600$ above, and that’s the only time that you are going to declare how much money you have won from playing casino games in the internet.
About tax when you lose, they indicate it as itemized deductions and will be deducted to your winnings. So it would be much better if you will take care of your taxes and keep them on track. Listed under other miscellaneous deductions, you are able to deduct up to the amount you have declared in your total winnings. Please be reminded that you are not allowed or you can’t show a gambling tax loss. It is imperative that you must prove your winnings and losses. That’s why keeping every receipt, tickets, etc. you receive from playing online casino games is a good option because the IRS strongly suggests that every online gambler must keep everything that will prove if they win or lose. All details must be included such as, the type of bet, how much you win or lose, name of the casino site, the I.P address of that casino, etc. Keeping a detailed book of your payment methods like eWallet, credit cards, debit cards etc. is very essential in paying your online casino tax.