Won a poker tournament on a cruise ship. I have no losses or no other winnings for last year, just the $1300. Do I have to report this on my taxes or is this winnings below the threshold to report and qualifies me to be exempt? Second part of question is, since I won on a cruise ship and a cruise ship is foreign territory since it is registered in the Bahamas, does that come into play with reporting gambling winnings on foreign soil?
2007-02-06 02:06:42 · 5 answers · asked by dood 2 in Business & Finance ➔ Taxes ➔ United States
Yes, you have to report it. US citizens, nationals, and resident aliens are taxed on their world-wide income from all sources.
The only way that it would be "exempt" is if it was your ONLY income for the entire year. Some gambling winnings are not subject to withholding, based upon the amount and the game. But the winnings are always taxable.
Keep in mind that the US has tax treaties with many countries. The cruise line had everything they needed to report any winnings if required by the country of registry. Don't mess; it's not worth the risk.
2007-02-06 02:17:09 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Legally, the answer is yes-you have to declare the winnings. In fact, you may owe taxes for it in the Bahamas.
Can you get away with not declaring it?
Did you give the cruise company your SSN? If not, then they probably did not file a 1099 to the IRS declaring your winnings.
Good luck.
2007-02-06 02:15:16 · answer #2 · answered by Christmas Light Guy 7 · 1⤊ 0⤋
1300 is above the threshold. Seems like they would have had you fill out a tax form of some kind when you won. I think you are home free. Go to IRS.gov and research though.
2007-02-06 02:11:46 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Legally, yes, you have to report it.
2007-02-06 04:19:21 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
I think you do have to pay taxes on this income.
2007-02-06 02:15:35 · answer #5 · answered by Yellow Tail 3 · 0⤊ 1⤋