Taxed winnings?

[NewtoCruisewKids]

Has anyone won enough to receive a 1099G form from the cruiseline? Does this happen? What are the dollar limits? I plan on winning a lot on my next cruise ;)

[Iamrc]

Has anyone won enough to receive a 1099G form from the cruiseline? Does this happen? What are the dollar limits? I plan on winning a lot on my next cruise ;)

 

Yes, you have the option of paying tax up front when you win same as home 1200.00

 

They give you a copy of your 1099g at the time they give you your winnings, it's up to you not to lose it. You can fax a request for your losses and total winnings for tax purposes in 2013. I know that NCL has a form.

 

Good luck hope you win.

[MrCo9]

This only applies to winnings on slot machines. Table game winnings are not taxed (unless you hit a Fire Bet or big payoff on Caribbean Stud or similar game), but if you cash out or buy-in for more than $10,000 in a 24 hour reporting period the IRS will hear about it.

[TVLady3]

A few weeks ago I hit on a 2 cent penny machine (Quick Hits) Played max an got the jackpot for $15,000!

I received a 1099G and now have to claim it on my federal income taxes next year.

[VideoTech]

Has anyone won enough to receive a 1099G form from the cruiseline? Does this happen? What are the dollar limits? I plan on winning a lot on my next cruise ;)

 

Yes, several times. I think the form you receive is actually the W2G for any single wins at or over $1,200 just as on land. You are required to claim any wins on your income tax for that year, and of course you can declare your offsetting losses too.

 

Best of luck with that plan to win a lot on your next cruise...it doesn't happen often!

[Daghis]

I was "high rolling" a bit on the Allure of the Seas last year and got a couple $1800 hits. I was surprised that the machine didn't lock up and I was able to cash out the normal way (TITO).

 

Both times, I took the ticket to the cashier, who was a bit surprised at the size the first time, and he gave me the money. No one mentioned a W-2G at all.

 

I know that larger amounts do require a handpay as I saw that for someone who had won a few thousand dollars on a $25 machine. I don't know whether he got a W-2G, but he was more of a likely candidate.

[VideoTech]

I was "high rolling" a bit on the Allure of the Seas last year and got a couple $1800 hits. I was surprised that the machine didn't lock up and I was able to cash out the normal way (TITO).

 

Both times, I took the ticket to the cashier, who was a bit surprised at the size the first time, and he gave me the money. No one mentioned a W-2G at all.

 

I know that larger amounts do require a handpay as I saw that for someone who had won a few thousand dollars on a $25 machine. I don't know whether he got a W-2G, but he was more of a likely candidate.

 

Strange. You can, of course, accumulate smaller wins and cash out over $1200 with no W2g. But a single hit of $1800 should have earned you a hand pay and a W2g.

[sept10dsm]

Maybe they will mail it.

[dna1990]

Flying a flag from another country and gaming in International waters - how does the U.S. IRS get their claws in to make them file on you?

[grod19]

Flying a flag from another country and gaming in International waters - how does the U.S. IRS get their claws in to make them file on you?

 

Almost all the cruise line corporate offices are based in the states so I doubt they want to annoy Uncle Sam

[VideoTech]

Flying a flag from another country and gaming in International waters - how does the U.S. IRS get their claws in to make them file on you?

 

The cruise lines are U.S. companies, with headquarters in the U.S. They must follow U.S. tax laws. Even though you are in international waters, the casino is, in effect, a casino operating in the U.S.

 

The ship's owners (who are not necessarily the cruise line) use the flag of convenience to dodge U.S. taxation on the vessel itself, and to dodge U.S. operating & crew laws. But unfortunately, we private citizens cannot do the same thing.

[mtrocall]

Hi All,

 

Do you know if you are from outside the US and win big on the cruise ships are you likely to have to pay TAX?

[Iamrc]

Hi All,

 

Do you know if you are from outside the US and win big on the cruise ships are you likely to have to pay TAX?

 

The withholding rate for nonresident aliens is 30%. Not coincidentally, the tax rate for nonresident aliens is also 30%. So, if a citizen of a foreign country wins $1 million cash at a slot machine in Las Vegas, he will find he is paid only $700,000. The remaining $300,000 is sent to the IRS. The foreign citizen is unlikely to ever file an income tax return, but the IRS gets paid in full anyway.

 

When my mother in law visits from abroad, she is always taxed...Canada has a treaty with the US so it is done differently. You need to find out if where you live has treaty with the USA and how it affects your own tax situation, but the ship will withhold tax.

[VideoTech]

The withholding rate for nonresident aliens is 30%. Not coincidentally, the tax rate for nonresident aliens is also 30%. So, if a citizen of a foreign country wins $1 million cash at a slot machine in Las Vegas, he will find he is paid only $700,000. The remaining $300,000 is sent to the IRS. The foreign citizen is unlikely to ever file an income tax return, but the IRS gets paid in full anyway.

 

When my mother in law visits from abroad, she is always taxed...Canada has a treaty with the US so it is done differently. You need to find out if where you live has treaty with the USA and how it affects your own tax situation, but the ship will withhold tax.

 

Can a foreign national file a claim with the IRS to have the money that was held out returned? Just curious.

[Iamrc]

Can a foreign national file a claim with the IRS to have the money that was held out returned? Just curious.

 

http://usgamblingrefund.com/gambling-tax-refund-eligibility.html

 

Under 871(j) certain gambling winnings are free of withholding.

(j) Exemption for certain gambling winnings

No tax shall be imposed under paragraph (1)(A) of subsection (a) on the proceeds from a wager placed in any of the following games: blackjack, baccarat, craps, roulette, or big-6 wheel. The preceding sentence shall not apply in any case where the Secretary determines by regulation that the collection of the tax is administratively feasible.

 

Under treaty, gambling winnings are free of tax in certain countries:

Gambling income of residents (as defined by treaty) of the following foreign countries is not taxable by the United States: Austria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, Russian Federation, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine, and the United Kingdom.

 

Claimants must give you a Form W-8BEN (with a valid U.S. Taxpayer Identification Number (TIN)) to claim treaty benefits on gambling income that is not effectively connected with a U.S. Trade or business.

 

Expedited TIN

 

Regulations generally provide that a taxpayer identifying number (TIN) must be furnished on a Form W-8BEN or Form 8233 in order for a foreign individual to obtain the benefit of reduced withholding under an income tax treaty. The U.S. Treasury Department and the IRS are aware of certain unusual cases in which an unexpected payment to a nonresident alien individual claiming treaty benefits arises on short notice. In general, a foreign individual receiving such an unexpected payment currently may be unable to obtain a TIN prior to payment. In such a case, unless the foreign individual already has a TIN, the withholding agent would be required to withhold tax at the 30 percent rate, rather than the treaty rate, and the foreign individual would be required to file for a refund in order to obtain the benefits of the income tax treaty. To alleviate this filing burden on foreign individuals, IRS has put in place administrative procedures that will allow certain withholding agents, who also are acceptance agents and who make unexpected payments to foreign individuals, to apply for and obtain an individual taxpayer identification number (ITIN) for such individuals on an expedited basis. See U.S. Taxpayer Identification Number Requirement for when you can accept a Form W–8BEN without a TIN.

 

Refer to Treasury Decision 8977, Treasury Decision 9023, and Treasury Regulation 1.1441-6 for more information.

 

You must have an ITIN to claim a refund if you are eligible for same.

 

For Canadians

http://www.taxtips.ca/personaltax/usgamblingtaxes.htm