If you win a large amount of money on a cruise line and you are paid in American currency,do you have to pay taxes on it? You are in the ocean and not on American soil but still its American currency. I went on a cruise 2 months ago and won $2500 at the slot machine on the boat.
2007-07-29 18:49:15 · 10 answers · asked by Anonymous in Travel ➔ Cruise Travel
If you received a W2-G form when you won then you'll probably have to pay. Most winnings over $1200 on slots is considered taxable as 'other income' on your filings. Even though you weren't on american soil, the IRS still looks at is as taxable income (i.e. same as if you were working in japan, you'd still pay partial taxes to the US). If they don't have your info or players card, you're probably cool.
2007-07-29 19:00:58 · answer #1 · answered by bohdi 1 · 0⤊ 0⤋
As I frequent casino player, but rare winner of any big money, I do know that if/when you win more than $600. in a US casino they will take your SS #, have you sign a form, and issue to you a form 1099 along with your cash. That 1099 is the report sent to the US IRS documenting your winnings (I had one just once ,,,LOL). You should keep your copy and file information from it with your tax returns.
If they didn't issue you a 1099, man you are home free. And if they did issue you a form 1099 we all know that you played that machine for hours and spend about $1500 in that casino before you won, so your net winnings was only $1,000. (Hint)
2007-07-29 22:58:33 · answer #2 · answered by TINKERTOY ..... the 1 & only 7 · 0⤊ 0⤋
Let me answer it this way, technically the income is taxable in your place of residency so not only will you pay Federal taxes but you will also be liable for state taxes. I have never won big on a cruise ship so I do not know exactly what they will do. My guess is they will not report it. If they do you will receive from them a form W-2G. If you don't receive one, it's really up to you whether you want to report it or run the risk of eventually getting caught. (Odds are extremely small that you will ever get caught) You will, however, technically be breaking US tax law. (statute of limitation is 3 years)
2007-07-30 04:37:25 · answer #3 · answered by stepmiller2 4 · 0⤊ 0⤋
Yes. The IRS gets their cut "on the spot". The Casino has to fill out a Federal form BEFORE they issue you any winnings. The IRS usually keeps 25% to 45% depending on the amount won. If your casino allows it, it is best to LEAVE the winnings "on account" and draw on them. Some casinos allow that and some do not. Check it out before you start playing. Know the rules and restrictions and you will enjoy it best.
2016-03-16 02:27:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Richard Hatch won $1,000,000 while he was in another country. He is now in jail in the United States because he did not pay taxes on the money he won.
Richard Hatch (born April 8, 1961) is the winner of the first American Survivor series, which aired in 2000 and was set in Borneo. He is currently incarcerated for tax evasion.
http://en.wikipedia.org/wiki/Richard_Hatch_(reality_TV)
My recommendation is, you better declare the winnings and pay your taxes on it.
2007-07-30 06:03:36 · answer #5 · answered by Zef H 5 · 0⤊ 0⤋
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2016-08-24 10:18:27 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I'm no expert, but it seems to me that if you're not in any country's jurisdiction, nobody can tax you. Just who do you think would have authority to tax you if you were on Jupiter?
2007-07-29 19:07:52 · answer #7 · answered by vinny_the_hack 5 · 0⤊ 1⤋
if you had to give them ue information...like socoial security #....they are going to tax you
2007-07-29 18:53:38 · answer #8 · answered by TOUCH 3 · 1⤊ 0⤋
I was thinking to ask this too
2016-07-30 00:21:17 · answer #9 · answered by ? 3 · 0⤊ 0⤋
What touch said :-)
2007-07-29 18:56:40 · answer #10 · answered by trblueyess 4 · 0⤊ 1⤋