Why do i get a W2-G casino tax form if my ship didn't originate nor going to a USA port?

[fstuff1]

I'm currently on the Infinity to Antarctica.

It originates and returns to Buenos Aires, south america.

 

I won a handpay in the casino.

Why do I get a W2-G?

 

[paulh84]

If you are a US citizen the location your earnings were won does not matter. It is still taxable income. 

[bEwAbG]

And since it's being reported to the IRS, make sure you report it on your taxes as income.  There are ways to offset wins with losses but if you do that, you have to report all wins and all losses (so usually more trouble than it is worth).  Consult your personal tax advisor, of course.

[fstuff1]

51 minutes ago, paulh84 said:

If you are a US citizen the location your earnings were won does not matter. It is still taxable income. 

yes, still taxable but why is this ship  giving me a tax form?

i've won equivalent of over $1200 in Mexico and no w2-g from them.

 

why is the infinity facilitating the paperwork since the ship neither originated or going to a usa port?

 

Edited February 18, 2023 by fstuff1

[paulh84]

5 minutes ago, fstuff1 said:

yes, still taxable but why is this ship  giving me a tax form?

i've won equivalent of over $1200 in Mexico and no w2-g from them.

 

why is the infinity facilitating the paperwork since the ship neither originated or going to a usa port?

 

 

Are you a US citizen? Location of the earnings simply does not matter. Just like if you have a rental property in a foreign country, as a US citizen the income is taxable. I would not consider anything that occurred in Mexico as the gold standard in following the rules. There is a difference in reporting games of chance versus skill but ultimately it's still reportable income. You would have to ask the casino why they are following the rules.

[WonderMan3]

Because it's an American-based company.

[mayleeman]

15 minutes ago, fstuff1 said:

yes, still taxable but why is this ship  giving me a tax form?

i've won equivalent of over $1200 in Mexico and no w2-g from them.

 

why is the infinity facilitating the paperwork since the ship neither originated or going to a usa port?

 

 

 

3 minutes ago, WonderMan3 said:

Because it's an American-based company.

 

And no doubt there is some obligation to report if they want to keep having US docking privileges. The Mexican casino likely doesn't have a direct connection to operations in

the US.

[WonderMan3]

1 minute ago, mayleeman said:

 

 

 

And no doubt there is some obligation to report if they want to keep having US docking privileges. The Mexican casino likely doesn't have a direct connection to operations in

the US.

Correct. And if you sail with a non-U.S.-based cruise line like MSC then they don't issue the tax forms to U.S. citizens, at least not on their European cruises (can't speak to any MSC cruises that visit U.S. ports).

[Peteymil]

1 hour ago, fstuff1 said:

I'm currently on the Infinity to Antarctica.

It originates and returns to Buenos Aires, south america.

 

I won a handpay in the casino.

Why do I get a W2-G?

 

Taxable income

[Fly and Sail]

Would a non-U.S. citizen receive one as well? Respectively, do they withhold a portion of the winnings as Las Vegas does? Sadly I never had a hand pay on Celebrity.

[kwokpot]

1 hour ago, Fly and Sail said:

Would a non-U.S. citizen receive one as well? Respectively, do they withhold a portion of the winnings as Las Vegas does? Sadly I never had a hand pay on Celebrity.

No

[jwlane]

5 hours ago, fstuff1 said:

i've won equivalent of over $1200 in Mexico and no w2-g from them

 

Not sure, but that's probably YOUR responsibility to self report.  Especially since you've announced it on the interweb.

[Georgia_Peaches]

Congratulations!  What game were you playing?  

[Hlitner]

So here is a very sad fact.  The USA is the only country (in the entire world) to tax its citizens and legal residents (Green Card holders) no matter where they live or work in the world!

 

Hank

[NutsAboutGolf]

11 minutes ago, Hlitner said:

So here is a very sad fact.  The USA is the only country (in the entire world) to tax its citizens and legal residents (Green Card holders) no matter where they live or work in the world!

 

Hank

 

Hate taxes but love the US?  You avoid income federal tax, income state tax and capital gains tax in Puerto Rico if you are willing to:

1) Buy property in Puerto Rico

2) Live there for 183 days a year

3) Make an $10,000 annual donation to an PR approved charity

 

While many will claim the electricity always goes out many buy generators and/or solar panel especially for new builds

[Dar & Bob]

22 hours ago, fstuff1 said:

yes, still taxable but why is this ship  giving me a tax form?

i've won equivalent of over $1200 in Mexico and no w2-g from them.

 

why is the infinity facilitating the paperwork since the ship neither originated or going to a usa port?

 

So if you know it's taxable, why worry why they issued it.  Just curious since I assume you claimed your winnings from Mexico 🙂  

[ijscheer]

23 hours ago, bEwAbG said:

And since it's being reported to the IRS, make sure you report it on your taxes as income.  There are ways to offset wins with losses but if you do that, you have to report all wins and all losses (so usually more trouble than it is worth).  Consult your personal tax advisor, of course.

As a certified tax counselor, I can provide the following information concerning Gambling Losses.

1 - Losses are only deductible as an Itemized Deduction.  Because of the increased standard Deduction, most taxpayers do not itemize deductions.

2 - The amount of Loss Deduction cannot exceed the amount of Gambling Winnings.

[WonderMan3]

3 hours ago, Hlitner said:

So here is a very sad fact.  The USA is the only country (in the entire world) to tax its citizens and legal residents (Green Card holders) no matter where they live or work in the world!

 

Hank

Other countries have their own tax situations too. I won a jackpot once at a casino in Cannes, France (around 2000 Euro) and they took around a 14% tax off the top before paying me. I was baffled since I wasn't a French citizen and asked if non-citizens could get the money refunded like with VAT and they told me no, it was a tax that everyone pays regardless of citizenship and no one gets it back. When I told a local about that later they told me "Yes, that's why everyone goes to Monte Carlo to gamble; no taxes there."

[ronandcarla]

On 2/19/2023 at 12:18 PM, Hlitner said:

So here is a very sad fact.  The USA is the only country (in the entire world) to tax its citizens and legal residents (Green Card holders) no matter where they live or work in the world!

 

Hank

What is so sad about that?

[mahasamatman]

On 2/19/2023 at 9:18 AM, Hlitner said:

The USA is the only country (in the entire world) to tax its citizens and legal residents (Green Card holders) no matter where they live or work in the world!

 

The U.S. is far from the only country to do this.

[Hlitner]

4 minutes ago, mahasamatman said:

 

The U.S. is far from the only country to do this.

You think?  Please name another.

[markeb]

4 hours ago, Hlitner said:

You think?  Please name another.

 

Apparently Eritrea. I saw one list that had North Korea on it. But that's about it. Didn't know that until this thread...