Asg123

If on a visit to the UK you go to a turf accountant and place a bet on the EU referendum or US election and win, would you have to declare it and pay US tax?

Nutmegger

TOTALLY OFF TOPIC WARNING! Turf accountant! Haven't heard that in an age -- what a wonderful euphemism that is!

Sorry, OP, back to your query . . .

lansbury

If you are a resident in the US and pay taxes here than I would say yes. Gambling winnings is treated as income in the US and tax is paid on it, so I would expect that to apply to world wide gambling income.

Bob

I wonder how many people actually do though?

It's like that line on the state tax that you're supposed to declare purchases made in other taxes, especially tax free ones. Well it might only be a MA thing because we're next to NH

lansbury

Our State lottery deducts taxes before payouts on any prize which the merchant cannot give out. The casinos do the same. But you are right I doubt many declare it otherwise.

I have a plan for a good scam. Erect a customs post on the border of Washington and Oregon and collect Washington sales tax on anything being taken out of Oregon. See how much I can collect before being found out.

Pulaski

NC expects people to declare out of state purchases "imported" to NC and untaxed on-line purchases on their tax return. Not all my fellow North Carolinians are as honest as I am.

penguinsix

Yes, you have to pay taxes on gambling winnings. In fact, if you do it online there is an argument that you have to report the existence of an online gambling account on the FBAR.

FBAR Penalty for Failure to Report Online Gambling Accounts

mrken30

This also includes premium bonds I believe.

"A client living outside the UK should check whether local regulations permit them to hold Premium Bonds. For example, the US has strict gaming laws which may mean it isn’t possible or practical to hold Premium Bonds while living there. Where Bonds are permitted, your client will need to apply by post, then register for our online and phone service to manage their holding."

cautiousjon

California expects the same.

mrken30

Fortunately we don't have to pay tax on out of State purchase, so I guess that keeps everyone honest.