What Do You Need to Know All About Taxes on Casino Winnings?
Well, it is the dream of nearly every high roller to hit the jackpot at a casino, whether it is in a mobile casino or land-based, and win a big sum. But in reality, do you get the entire amount of jackpot back at you? If you have this circling question, then with that being said, let’s start without any further ado.
Now let’s get into the main topic, that is, “Do we have to pay tax on winning at a mobile casino?” And if yes, then “How much?”. Well, in actual fact, the taxation laws differ from one country to another. Therefore, it is a relative concept. But in this article, we will be talking about the tax that is to be paid by the gamblers of the United States of America and the United Kingdom of Great Britain while cashing out their winnings or as they are commonly known, wagers in mobile casinos. Gambling income, in general, is a taxable income. This taxable income includes cash and also the fair market value of nearly any item you will win. According to the laws and regulations, gambling winners should compulsorily report all of their winnings on their federal income tax; otherwise, it is considered a felony.
Taxable Amount for Uk Gamblers
Well, in the case of the high rollers in the United Kingdom of Great Britain, it is good news. If you are from the UK, then, you probably wouldn’t have to pay any tax on winning money at a casino. And believe it or not, it is actually true. There is a very logical explanation behind this regulation; that is, in the UK, the gambling winnings are not considered to be a stable form of income, and hence, it is not included in the tax forms. But it is not as easy as it seems, as there is a limit to the withdrawal amount of gambling winnings at the casino. The casinos in the UK have comparatively a smaller amount of withdrawal limit than the casino in the US. But it only seems fair because you get to take each penny of your winning without having to pay any tax.
Taxable Amount for Us Gamblers
In the case of the high rollers in the United States of America, it is quite the opposite and also a bit unlucky because, in the US, the gambling winnings are considered to be a form of income, and a person has to pay tax on winning a jackpot in the casino. Whether you are a professional gambler or just a recreational one, if you win, then, you would have to pay tax. Not just in the casino, but also if you win a lottery or betting on horse racing or raffles, then you will have to pay the full tax that is generally charged on the income of the residents of the US.
The threshold or in layman’s language, the limit after which your gambling winnings become taxable is $600 in a single hand. Now, if you win $600 in a single go, then the casino will deduct the amount of tax from you net winnings, and if you win that same $600 overall, then you would get the money, but later you would have to file the tax for that income yourself. The general percentage of the rate of income tax is 25% of the net amount.
Tax At Online and Mobile Casinos
If you love to enjoy the recreational activities offered to you by the casino in the comfort of your home then, we probably have bad news for you , as it turns out that whether you are the US or a UK citizen, it doesn’t matter because you have to pay tax on the net online gambling winnings. When you cash out from the online casino, you get the gross amount at your disposal. The mobile casinos are just the same as online casinos, but it is just that mobile casinos can very easily be available on your Android/iOS devices. The tax regulation law in mobile casinos is just the same as online casinos.
This article aims at clarifying all your queries regarding different tax payment parameters for gambling winnings for both the online and land-based casinos. So, if you win a big, don’t forget to file for an IT form as per the said taxation parameters.
Blog Name: What Do You Need to Know All About Taxes on Casino Winnings?
Posted On: 21/10/2019
Author: Robert Bowron