if someone win some money playing slots overseas, do he/she have to pay taxes in US?
 

if someone win some money playing slots overseas, do he/she have to pay taxes in US?

let's say "some money" is around 11,000 Euros.

I thought US citizens always need to declare their entire world income in the US ?

yes....but you can deduct gambling losses....

also, 11k euro, if in cash, exceeds the $10k cash limit for entering/leaving the us....so, perhaps don't go thru the us to yvr on your return....

good luck...

Non-US citizens resident outside the USA have no obligation to pay US taxes on any gambling earnings outside the USA.

Very interesting. How about US citizens residing outside the USA for most of the year?

I would politely suggest you ask this question to a qualified tax attorney.


Flyertalkers are an incredibly smart and well versed bunch, but I would hate for you to risk a lot of money and heartache over some bad Internet advice.

If you have to ask, the answer is Yes. :)

I could be wrong but if you exceed $9,999 USD in gambling winnings abroad in one sitting, you would be better off reporting it to the IRS

If a Japanese citizen wins $15000 at a casino in Monte Carlo (for example), why on earth would they need to report anything to the US IRS?

The US IRS, contrary to popular perception, has absolutely no jurisdiction to tax foreign nationals on non-US earnings.

Must assume from your FT username you are a US citizen resident in Canada. However, US citizens residing in Canada must file taxes in both countries, but these are adjusted based on where the income was earned. In Canada, there is no need to declare gambling winnings as income as these are not taxable -- unless you're a professional gambler deducting losses -- but under US laws you must declare this portion of your income and it is taxable by US authorities. So you really need to clarify your residency/tax status to get an accurate response.

I think a few posters are pointing out that FlyerTalk has users world-wide, so the question should really be does a US citizen/resident have to pay taxes on it?

The legal answer is yes -- a citizen/resident is required to report all of their income, regardless of where it happens.*

The fuzzier question is, "Can I get away with not reporting?" That I can't answer.

*Yes, some pedant is going to bring up cases where citizens don't have to file (like you don't make enough) but if you're traveling to Monte Carlo and winning big, you're probably not one of them.

My original post applied to U.S. Citizens

So you are saying that if you are residing in US you have to report income earned elsewhere even if you are not a citizen? I thought only income earned in the US needed to be reported by non-citizens.

Good question. Yeah consulting a tax attorney may be wise. However, imo that damn country takes enough of your money...I wouldnt disclose s*it if that was me.

If it was me - I would go on a shopping spree LV luggage, jewellery ......

Seriously - I thought that they were only concerned if you had more than $10k in CASH with you on entry... If its a cheque/ payable order that is different...