Do you have to pay taxes on Bingo winnings?

[shep]

Was wondering if you had to pay taxes if you won a large amount of money...
Since you are out of the country...Do you claim it?

 

[aprilgail2]

I won just over 350 and didn't have to pay anything on it...not sure about the big jackpot though.

 

[Masonpips]

My dh won $5,100 in final jackpot bingo and he had to take posession of the money (in cash no less and all $100 dollar bills) before midnight on our way back from Castaway.

At that time, since you're in "international waters" there are no taxes due.

I was quite nervous on the rest of the trip (went to the parks) with all of that cash. We bank through a financial institution and couldn't really find a branch to deposit it at. We paid cash for everything we could (which was WONDERFUL to come home without any credit card bills showing up later) and split the money up between us so we weren't carrying as much (plus used the safe when we could)

 

[AUDREY BELCHER]

a few years ago we went to play bingo and before the game started they pulled a name out of a bin and we won a suite for the rest of the cruise it was the 3rd of a 11 day cruise. We moved from a inside cabin to a suite. how sweet it is.

 

[one princess]

How sure are you that you don't have to pay taxes? I was under the impression that you have to claim anything over 2,000. I won 3,400. My SIL is a CPA and she confirmed this but I am pretty sure she didn't look it up or anything and I am sure she has never had it come up before. What I have heard before is that if you win anything over 2,000 at a casino that is out of the USA you have to claim it. BUT that is different than international waters. I won it in Jan. so don't have to do anything until next year and would sure LOVE to not pay taxes!

Jackie

 

[pjacobi]

From searching around at IRS.GOV this is my understanding of the rules:

1) IRS wants you to account for every penny! Gambling losses may be deducted from winnings.

2) In the US, if you win $600 ($1200 bingo/slots, $1500 Keno), the payer must file form W-2G.

3) In the US, if you win over $5000, the payer must withhold 25% tax. If you fail to provide Social Security number, the payer must withhold 28%.

4) If you win outside the US, the payer does not need to file W-2G or withhold any tax, but the winner still must report it on the 1040 and pay any taxes.

Practically speaking, the IRS would have a hard time tracking any wins under $600 or any wins outside the US where there is no paper trail.

As Jiminy Cricket says, "Always let your consciense be your guide!"

 

[tvguy]

I think the best response is....Disney does not withhold taxes from Bingo winnings like a Casino in Nevada would, but technically you have to report the winnings and pay taxes on them.
Any waiters or waitresses out there? Do you report ALL your tips to the IRS?

 

[wannabecruiser]

I think the best response is....Disney does not withhold taxes from Bingo winnings like a Casino in Nevada would, but technically you have to report the winnings and pay taxes on them.
Any waiters or waitresses out there? Do you report ALL your tips to the IRS?

Why of course we do!!!!!!

 

[ohioworkingmom]

I am a practicing CPA and did a quick check on this. According to the tax code "the US taxes the worldwide income of US citizens without regard to whether the income arose from a transaction or activity originating outside its geographic borders." So to simplify, yes it would be taxable on your form 1040, no you will not receive a W-2G to show that you won the money, so your conscience is what is at stake. As to the deductibility of losses, you can only claim gambling losses to the extent of gambling winnings, and losses are shown on Schedule A, subject to a 2% deduction (based on your adjusted gross income) whereas you winnings are reported on the front of your 1040, as other income. Therefore the losses will not completely reduce the amount of tax you owe on the income you claim, and you need to maintain proof of you losses, so save those receipts!

 

[jhorstma]

What is the reporting Customs/Immigration threshold, if any, for bringing cash into the US? Doesn't that start a paper trail that IRS can audit on?

 

[jhorstma]

Also, you might want to ping RCCL or Carnival (either web site or, if no info there, either cruise lines phone number) about how casino winners on their boats are handled vis-a-vis taxes and reporting.

 

[ivanova]

What is the reporting Customs/Immigration threshold, if any, for bringing cash into the US? Doesn't that start a paper trail that IRS can audit on?

From Customs:

MONEY AND OTHER MONETARY INSTRUMENTS
You may bring into or take out of the country, including by mail, as much money as you wish. However, if it is more than $10,000, you will need to report it to CBP. Ask the CBP officer for the Currency Reporting Form (FinCen 105). The penalties for non-compliance can be severe.

“Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders, and negotiable instruments or investment securities in bearer form.

So if you win more than $10,000 DCL might not have to file a W2-G with the IRS, but I bet they need to tell Customs. And if you don't report it to Customs, you're in deep doo-doo. And I bet Customs will report $10,000+ to the IRS......

 

[DisneyElf]

Good point -- so if you win Bingo -- make sure it is under $ 10,000

 

[jrabbit]

Good point -- so if you win Bingo -- make sure it is under $ 10,000

I'll bet you that on the repo cruises someone wins over $10,000 on the final jackpot.