Should i be paying taxes being a non US citizen ? Paying 30% of my skillgames winnings to the IRS .?
Hi , got a prob here . I play skillgames , such as Zuma and Dynomite , for cash , at Worldwinner . I'm fairly successfull , i make a profit . Problem is that the IRS are taking 30% of my winnings off of me . I am of Scottish nationality , UK citizen . Also they don't take my net losses into consideration , taking 30% of my winnings without taking into account that i've just lost $30 playing another game. Am i due a full return of all taxes paid ? It advises to consult an accountant to decide whether my net losses should be taking into consideration . A cyber friend of mine at the site has paid 10k in taxes in the last 6 months , he's Swedish . What's the script then ?
2007-09-15 05:16:54 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
What ever be the way you earn money, be it through salary or business or gabling, if you make money beyond a certain limit you come under tax bracket. You have to pay tax in the country you earn it, not where you have your citizenship.
2007-09-15 05:34:05 · answer #1 · answered by Brookes 2 · 0⤊ 0⤋
Since you are a non-resident alien under US tax law, those winnings are subject to a 30% levy at the source. Unfortunately you are not entitled to offset your winnings with any losses.
This type of earnings does not require the filing of an income tax return and even if you filed one it would not affect your liability. That income is subject to taxation at the source and would not be included on a tax return even if you filed one for other taxable income.
It would be different if you were a US resident or citizen.
2007-09-15 05:38:41 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The U.S. (most of the counties of the world) collects taxes on the income of non citizens or non residents from the U.S. sources. If you can somehow file the U.S. income tax return, then on the return you can deduct your winnings losses.
I don't that there is a why that you can file 1040NR (non residernt return). Check at
www.irs.gov
2007-09-15 07:25:20 · answer #3 · answered by MukatA 6 · 0⤊ 1⤋
You can write checks for the money you play with and then deduct those amounts (have copies of the checks made by your bank) from your winnings. People who win money on game shows have to pay taxes...why shouldn't you? Taxes are what helps you enjoy this country and you should be paying your fair share.
2007-09-15 06:24:04 · answer #4 · answered by red 7 · 0⤊ 3⤋