Finances Gamble

How Much Can You Win in an Online Casino Without Paying Taxes

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Written by Quentin Hack

Gambling is one of the most interesting activities one can indulge in. If you ask a certain number of people, what is one thing that makes them excited, challenged, and entertained at the same time, the majority of them would tell you that this is exactly what they experience when they play a round of blackjack, poker, or a couple of slot spins. 

Why is it like that and what makes gambling so fun? One of the reasons people enjoy playing online games and gambling both online and at brick-and-mortar casinos is – the risk. The risk in gambling is at the same time, the best and the worst part of it. It has been proven that a part of human nature is to feel excitement when taking risks, because of psychological and physiological elements such as the spike of adrenaline. The risks and the uncertainty of gambling makes the game worth playing, since it makes the gamblers feel alive and it also makes the prizes more worthwhile and the winnings more meaningful. However, even if gamblers lose, it’s the risk that makes them want to go back for more, because of all the complex feelings and emotions they experienced during the game.

The way gambling and casinos in general are presented in public whether it’s movies and TV shows or the internet is – glamorous, entertaining, classy and most of all – fun. This is why many people want to visit one of the world’s famous casinos such as the Bellagio in Las Vegas, or some of the Monaco casinos; and they have that wish on their bucket list because they go for experience rather than money winnings (or they want both!). Still, one thing that needs to be mentioned is the fact that brick-and-mortar casinos are not the most common way to gamble anymore.

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These casinos are now treated as amenities, or in other words – tourist attractions and places where you can go to, have fun, meet people, have dinner or drinks and then go back to your normal life. On the other hand, the most common way people gamble nowadays is by gambling in one of the online casinos. The gambling industry has slowly but surely switched to online, and that is for a good reason. Not only are there thousands of online casinos that offer fantastic deals, prizes, and bonuses, along with beautiful and aesthetically pleasing designs and interfaces, but these websites and online casinos are convenient, easy to use and available 24/7, throughout the whole year. This is, compared to the traditional casinos, a better option for many people. You can easily access one of your favorite gambling websites and the only thing you need is your smartphone and internet access. 

This means that you can indulge in a game while you’re waiting on your commute, while you’re waiting in line or just resting at home. Not only can you have fun and also interact with other like-minded people, but you can also win a lot of money online, the same way or almost the same way you would, if you went to a brick-and-mortar casino. 

However, although people perceive gambling as only fun and games, and they all wish for the biggest bonuses and winnings possible, one thing that nobody mentions is – what happens after you win money? Even a better question would be – what happens after you win a lot of money? Is it completely yours? How much of it do you need to give out to someone else, and finally, are there any taxes on your winnings?

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That’s why it doesn’t come as a surprise that one of the most popular questions online is the question about gambling and taxes. Although it may seem like a logical thing that gambling is great because you don’t need to pay taxes on it, the reality is quite different. You would not be that happy about winning something if you knew that you can afford to pay that much taxes on it right? 

According to 10CRIC, the first thing you need to know is that nothing is perfect, and the same goes for winning amazing prizes; the majority of wings are treated as income so they definitely need to be reported and be taxable. They are usually taxed at 25% but it depends from state to state and from country to country – not only when it comes to the percentage of tax but also when it comes to two paying taxes in general.

Casinos, whether they’re online or brick and mortar, have certain regulations and one of them is reporting winnings to the IRS. However, this only happens for bigger winnings, while the smaller ones are up to you to report, so this might be good news for you. You still need to pay taxes on your winnings, but you can at least postpone it since the casino will not report it to the IRS immediately. One thing to keep in mind is that not only do you need to pay taxes on a federal level, but sometimes you need to pay state taxes on gambling, although also varies from state to state, so it would be best for you too to a bit of research beforehand and then decide whether that’s for you or not. 

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There are some thresholds, however. If you want the exact numbers, then you should know that everything above $1,200 on slots needs to be reported by the casino you were playing slots at. For them to be able to do that, you need to file certain forms and give them your personal info. Table games are never a subject of these forms, which is great if you’re a fan of roulette or blackjack, for example. If you’re a poker player, then everything above 5k (without the money you invested in the bet, of course) needs to be reported by the payer – online or offline casino. For all the other games, thresholds are around 1k, while if you’re into horse betting, the threshold is around $600. 

Finally, paying taxes on your gambling winnings is not that tragic, since you can deduct gambling losses, along with your annual tax returns. Just be aware of the fact that in order to do that, you need to report all the winnings! 

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Quentin Hack

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