What are tax implications of winning money through online gambling, is it illegal to deposit it intomy bank account/
2006-07-07 11:54:58 · 6 answers · asked by cmjz1313 2 in Business & Finance ➔ Taxes ➔ United States
Incorporate in Nevada and open a corporate bank account using a Federal ID number, Form SS4, you can get the number on the telephone, or deposit the money with a brokerage firm in a corporate account. do not use your social security number.
You can incorporate on the internet with Portsurf International, Inc. (cheapest I found) around $160 total.
Don't use your social security number when you move the money around, use the federal ID number. Do not put it in a bank if the bank has any way of getting your social security number.
Use a bank that is a stranger to you and give them the Fed. ID # or put it in a brokerage account, like Options Express or Scottrade.
This is all perfectly legal.
2006-07-07 12:08:00 · answer #1 · answered by The Advocate 4 · 1⤊ 0⤋
I don't agree with Progolf's posting. When you request a Federal ID number you have to indicate for what purposes it will be used and what kind of entity you are requesting it for. You ar then required to file a tax return for that number as well. the only way around it is to report it under your own return and notate it is for that tax ID number.
In short, the online gambling company is regulated the same as any other casino. It will file a return with the IRS. It will file a W-2G with the IRS for you that shows how much you won. The IRS is in the digital age now and has a system that does automatic matching. If that amount doesn't show up on your return you will get a notice and it will asses not only taxes, but also penalty and interest.
I advise paying the taxes now. You didn't count on the money so having a little less won't hurt. Then you won't have to worry about it come tax time.
2006-07-08 08:51:56 · answer #2 · answered by accountant 3 · 0⤊ 0⤋
Depending on the amount of money that you won and how much money you make annually, you may not have to pay taxes.
It is better to have taxes withheld from the money before you receive it. Otherwise, again depending on your gross adjusted income, save 12-28% for taxes.
2006-07-07 12:03:17 · answer #3 · answered by momma dog 4 · 0⤊ 1⤋
Be sure to give your e-mail & postal address in prison to your family and friends. But don't worry, you won't be there long. They give leniency to people who haven't had the luxury of an adequate education.
2006-07-07 12:01:40 · answer #4 · answered by rayhanks2260 3 · 0⤊ 1⤋
You will have to claim it because the place that you won it from will be claiming it so if you don't you will get caught.
2006-07-07 12:32:52 · answer #5 · answered by maryjane 3 · 0⤊ 0⤋
good question ...
but i wanna be a physchiatrist and I wanna try something
imagine someone else in your same shoes .. what would you tell them to do??
think about it and have a great week ^_^
2006-07-07 11:57:12 · answer #6 · answered by Mj 4 · 0⤊ 3⤋