Good Question Mel. I would like to know too. I have paid taxes on winning in Atlantic City, Vegas, Colorado, Conn. and upstate N,Y, The last three were all Indian reservations but I still had to pay. I am sure some one will find a way to tax this too.
Whoops...scratch that Colorado. It was Cherokee, North Carolina. It is almost 3 am here so I should get to bed earlier if I want to be more accurate.
Mel, I hope you know that you take away your losses from your winnings and then claim whats left on your income taxes. And those losses could be from any type of gambling such as casinos, race tracks, Lotto tickets etc. The catch is you have to prove it if called on it. Not hard to do. Never put a dime in a slot machine with out your player card inserted. Save your old Lotto tickets etc. They will let you fudge a little but you must be able to back up your estimate of losses with some hard proof. If you are a table player as well, show your player card when you first sit down to play and at the end of the year, a casino can give you a written estimate on your wins and losses for that year. Most of this is not true for cruises. Most do not have player cards so if a win had to be claimed, I guess it would have to be estimated how much of losses you had to win that money. Good Luck. Hope we both come home WINNERS.
I have had experience with taxes and documentation to support claims stateside, but I am not clear abount international waters. Since you are not collecting your money from a specific country, does the registry of the ship or port of origin come into play? Do they wait until you dock and are then paid stateside? Someone out there should have practicle knowledge of this.
Yes you report income, but with gaming your immeadiate win is offset by your immeadiate losses. Without a W-2 form, the federal government has no records. The idea that certain size winnings are reported to the IRS is a US law, not international. It becomes an honor system thing then and impossible to enforce. My question is: Is this the case?
I would feel fortunate IF I ever won enough to worry about it. Then I wouldn't worry about it.
You pose an interesting question though, I have never seen it posted anywhere on a cruise ship that winnings above $600 have to be collected at a separate cashier or otherwise somehow reported and recorded. Based on this, I would tend to believe you do not have to report gambling winnings above the $600 threshold.
If you realize there may be multitudes of passengers from a dozen different countries on each sailing, trying to keep track of the various home country laws governing their citizens aboard foreign vessels might be just too much to be considered.
I would say WIN,WIN,WIN and if you have to do something legal about it they will let you know.
When ever I hit over $1100.00 at a land based casino, that was when they wanted my SS # and they gave me the tax form. When you win over that amount and you have to claim it on your taxes, you can take all of your losses off that you have had for that year,
not just for the day you won the jackpot. It does not have to be just casino losses. It can be any gambling loss. You can claim losses up to the amount of your winnings but not over the amount that you have won.
Two years ago I hit a progressive video poker machine for $1,336 on a cruise to Mexico and they gave me a slip to take to the cashier. The cashier paid me in cash and told me that they DO NOT report to the IRS. They also did not take my Social Security number.
Yes Don, that is exactly the information I was looking for. I have gone through the IRS thing with stateside casino's before. This is my first cruise, and I was suspect that what you have said was true. I post on several Las Vegas chat boards, but oddly enough, no one had a clue to the procedures and requirements on cruise ships. Thanks again.....
Mel, what chat boards do you post on? Years ago I was active on one with Prodigy and it was a lot of fun. We go to Vegas about ten times a year (250 miles away) and would be interested in checking them out. Don
The one I frequent the most is www.travel2lasvegas.com. I get to Vegas about 2 to 3 times a year. I have been going about for 35 years now. This is a good board and has many links you can follow for information. Max Ruben has a good site if you are a BJ player. I enjoy craps as well and will put some pocket money in the slots just for fun. I won't be making the casino on shipboard my main diversion, but will definately give it some action during the cruise.
I found this question quite interesting as in the UK we don't pay taxes on gambling winnings. But doing a search on the internet, I found that Bruce was right, in the US you are supposed to declare all gambling winnings wherever in the world they were obtained. I assumed that because the ship is in international waters, gambling winnings would be tax free for everyone - just like the goods for sale in the ship's boutique are tax free. So if you win the jackpot I suppose the best solution is to become a British citizen!
Gambling winning ARE taxable and have to be reported to the IRS. If you win more then a certain amt (600) you should get a form-anything over 5K taxes should be taken out. We won 250 on the Triumph in February but since it was below 600 we didn't receive any forms.
The IRS form W2-G is issued to players and is also sent to the IRS by the casino for certain gambling winnings: (1) winnings of $600 or more from state lotteries, horse racing, dog racing or jai alai and other wagering transactions, if the winnings are at least 300 times the wager; (2) winnings of $1,200 or more from bingo and slot machines; (3) winnings of $1,500 or more from keno, less the amount of the tickets bought on the winning game; (4) winnings of $600 or more from horse racing, dog racing or jai alai, if the winnings are at least 300 times the wager.
BUT, cruise ship casino's do not report these winnings to the IRS and it is up to you to Voluntarily report them. Also, gambling losses are deductable up to the extent of your winnings.
10k is claimed by you always due to federal regulations-it has nothing at all to do with gambiling regulations-it is a CUSTOMS issue. I used to work in a bank as a teller....whenever someone deposited 10k in CASH into their account there was a regulation where we had to report it to the govt. This is due to the amount and the idea it may be drug money, etc....Here is the info on that:
How much cash may I bring with me for my trip?
There is no limit on the total amount of money or monetary instruments that may be brought into or taken out of the United States. However, if you transport or cause to be transported, more than $10,000 in monetary instruments on any occasion into or out of the United States, or if you receive more than that amount, in behalf of someone else and then transport it, you must file a Customs Form 4790 with U.S. Customs. Failure to comply can result in civil and criminal penalties, including seizure of the currency or monetary instruments. Monetary instruments include U.S. or foreign coins, currency, traveler's checks, money orders, and negotiable instruments or investment securities in bearer form are all considered when determining the total $10,000 reporting requirement.
If you go to the IRS website it states gambling winnings ARE taxable...however I'm not sure about cruiseships being outside the US how that works. Go to www.irs.gov and type in "gambling winnings" and you can read the regulations.
I believe the casino was speaking about the customs issue, not the gambling tax issue when they stated anything over 10k is reported. I would be sure I reported it on my taxes as the IRS may audit you if they find out.
i won 2400.00 at bingo last week and in order to get my winnings i had to go to the pursers office with my id and a witness and the purser filled out a 1099 which he gave me a copy lof along with my check which was drawn on a seattle washington bank