“Am I required to pay taxes on illegal gambling winnings in my state? How should I handle winnings from online gambling in a state where it’s illegal? #taxesongambling #illegalgambling #onlinegambling #taximplications”
Concerns About Taxes on Illegal Gambling Winnings
If you have won money through online gambling in a state where it is illegal, you may be wondering about the tax implications. Here are some key points to consider:
Legal Status of Gambling in Your State
- Is gambling illegal in your state?
- Did you use a VPN to access online gambling platforms?
Reporting Your Winnings
- Even if gambling is illegal in your state, you are still required to report your winnings to the IRS.
- Failure to report gambling winnings can lead to penalties and fines.
Tax Obligations
- Consult with a tax professional to determine your tax obligations on illegal gambling winnings.
- You may be required to pay taxes on your winnings, regardless of the legal status of gambling in your state.
Remember, it is essential to comply with tax laws and regulations to avoid any legal consequences related to your gambling activities.
Yes the IRS does not care how, they just care how much
You’re supposed to report money illegally obtained. The IRS won’t refer you for prosecution. They just want their cut.
Yes. Al Capone got arrested for tax evasion, not for running an organized crime empire
You owe taxes on illegal drug profit so you would definitely owe taxes on illegal gambling gains!
I can tell you that you owe money on any money you make selling drugs.
There is likely a code in there for illegal winnings as well. This way if you get caught they can sue you for the taxes you owe.
I made 10k in 3 months at the end of 2017 gambling and withdrew via bitcoin. I never paid taxes on it. The IRS genuinely doesn’t care as long as they get their cut.
You technically owe taxes if you deal drugs. So, probably yes.
Al Capone was got on tax evasion.
Yes, the IRS is clear that you need to claim income from illegal activities.
Yeah you gotta file a “10-40 I did something illegal” lol
Real simple: if you put a dollar in your pocket the IRS wants its cut (or a reason it shouldn’t). You can sell black tar heroin, child porn, or nuclear weapons. You may get busted for those things but at least you won’t get fucked from the IRS if you pay your taxes. And many times the jail sentence kicked down from the IRS is horrendous.
Legal or not the govt wants a cut.
Depending on how much you win your state should have it listed online with how big of a win you need to pay taxes on.
If more than $25,000 you owe federal money from what I looked up online.
Yes
Yep. I know a guy who did time for tax evasion for not reporting income from selling weed before it was legalized. He covered his tracks and never got convicted for selling, but the IRS had him dead to rights for filing false tax returns. He served just over two years and had to pay about $500k in taxes with penalties and interest.
I knew of someone who did illegal bookmaking. He had a filling number he used every year with the IRS to pay taxes on his profits. He didn’t fear legal consequences for the operation itself, but he did fear the IRS and paid.
If it’s in the bank, you have to report it. This is why people typically deal in cash during illegal transactions. #1 rule of the US legal system: don’t get caught.
I believe you’d legally have to report illegal drug sales on your taxes lmao. They don’t care what you did, so long as you give them their share