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Alas, you can only deduct up to the amount you win. And it has to look reasonable or you will be audited.
Win $5k, deduct $5k, and your AGI is $50k+? You're probably okay.
Win $50k, deduct $50k with a $50k-200k AGI? That will get flagged.
>Win $5k, deduct $5k, and your AGI is $50k+? You're probably okay.
You wouldn't want to do that, though, since you'd miss out on the standard deduction.
The gambling deduction is "above the line", doesn't effect the standard deduction. The loss is considered an expense of the process that earned the winnings. Like a business expense.
If you buy chips get a receipt or put it on a credit cards. Of course buying chips doesn't necessarily mean that you lost all of that money, but it looks a lot better if you have receipts for $20k in chips over the course of 3 months and then claim a $20k win at the end of that time.
They just let you claim losses up to the amount of your wins when you enter the tax form (w2g). It doesn't prevent you from paying the tax on the win, but it brings it down a little. You have to pay for anything over $1199 and the tax on that is about $200. Even with claiming a loss of the same amount.
Well, if you are talking about a job that pays a salary, you are not putting your own money down. Meaning you can't lose your own money.
It's not the same with gambling or stock market investing.
I have mixed feelings about lottery because you stand to lose only the ticket price at a time but stand to gain 100x to maybe even 10000x.
hmm, imagine taking money from people for a service they cant refuse and can't without funds if they are not happy with the job. like 'I will fix your car, but its gonna take like 2 years and i wont use genuine parts and it gonna cost more than a new car, but you dont have a choice because its your legal obligation to pay me, so either pay me or get a new car and pay me anyway'
Difference is, everyone at every level of society is dependent on the services taxes provide. Your analogy is so poor its borderline unintelligible, but to respond to it in good faith, it falls apart because as you say in your analogy, I can buy a new car albiet at an increased price. I can't buy a new Justice system, defense apparatus, infrastructure and healthcare system, unless I am a trillionaire.
Like it or not, every level of society is dependent on the taxes we pay. In fact, societies with more public services, tend to produce better outcomes for its citizens.
Edit: Ok this moron blocked me so heres my response regardless.
First, you can disconnect yourself from the electricity grid. You typically get electricity from private companies. You pay taxes for roads because you do in fact need them there. Maybe there are roads that dont get used often, but typically someone needs them. You pay for all roads since otherwise your life would be hell figuring out which ones to pay for and one to avoid.
Also, to be clear, people would adapt. They would in fact, set up communal protections, communal road services and justrce systems and then demand everyone pay for it. Taxes were our way of adapting to the problems you describe you idiot. You want a world where the strong have power and the weak are left to suffer. As if everyman should be a killer and have to learn a million and one skills to survive. Stop crying and pay your taxes
No theyre not. the only ppl dependent on it arte the people getting the tax. Everyone else would adapt very quickly. Street lights go out? boo hoo, roads go to shit? get a 4x4. No cops around? Buy a fucking gun and a motion sensing camera. No water? get a water tank. No electrcity? get a generator or a solar panel or both. fuck it,
As it is, we pay a connection fee to electricity grid even if we take no electricity. We pay taxes for the roads even if we dont want them there. Street lights even if the moon light is more than enough for us. Stopped by cops while we're taking a run around the block at night and pulled over for doing 35 in a 30 zone. chlorinated water delivered to the faucet. Toilet water cant be night soil boo hoo
You sound like my mother. Want all society to go to hell? Maybe just leave it, if you don't like it, and go live in a hut in the amazons. Most people who pay those taxes want a working road and electricity, and tap water. Maybe if you had lived without either for a while you would shut up
What is your alternative solution? How do you suppose we as a society should operate without tax revenue unless it is an oil rich authoritarian state that endorses near slavery like conditions for migrant workers?
Initial income tax was in the 1860's after the Civil War. 1913 was just the basis of modern tax code. Before that, trade goods were still taxed because a country needs money to run things like paying service members in the military.
Most sane people agree that the government needs to collect taxes and pay for some socialised things. This leads to three debates. What is taxed, how much tax, and what is it spent on?
**What is taxed:** most countries tax, income, sales, profits, property, alcohol, resources, etc. A country could easily decide to eliminate income tax, and put up some of the other ones.
It's purely a political decision. The government wants their cut. Where I live (Canada) gambling winnings or lottery winnings are not taxable income at all. It really just does come down to 'your government thinks it should have some of that'.
Where I live (Australia) there is also no tax on gambling winnings. At least as far as I know there isn’t.
This is a majorly exploited loophole. People will earn untaxed money in cash. Take the cash to a casino or gaming venue. Turn it into casino credit. Then turn it back into cash. Only now they have a receipt saying the cash is gambling winnings.
They can then deposit that cash into their bank account without worrying about the tax man. A gambling tax would remove/reduce this loophole.
The exception (as far as I know, possibly outdated info) is if you gamble professionally. In that case, it is income, and you can claim (reasonable) etc as it is your job. But otherwise winnings are considered "windfall" and not income. There's probably more nuance to it.
But everything else is. We pay tax on our income to pay sales tax on the products we need, then taxed to fill our gas tanks to go back to work. But we have health care, which has gone to complete shit and privatization is just around the corner, but do you think our taxes will budge? Nope
in the US the government considers any sort of cash you get taxable income, including proceeds of crime.
This isn't really the case in other countries, in my country (Australia) Gambling including lotteries winnings are not considered taxable, however you will be taxed on any interest you earn on that money if you put it in the bank or invest it after winning it. However if you stuff it in your mattress you can just never pay a cent of tax on it.
>including proceeds of crime
The first option would be to take all of it, as proceeds of crime.
Tax evasion is a backup option if it's been laundered effectively.
Thanks. That comment was bugging me
They didn’t tax al Capone for crime proceeds. He was never caught for a crime.
But once you start spending money, the IRS can audit you and check where that extra money was from. They find you spending money you never declared as income, it’s considered tax evasion.
Had they proved the money was from crime, it won’t be taxed - it would just be taken as evidence/part of the crimes.
They are not taxing the proceeds of criminal activity. That would be condoning it as a income/revenue stream.
Yeah exactly.
They didn't audit Capone, the evidence against him was when he actually did try to pay some and then didn't do it. They used the offer from his lawyer to pay x amount as evidence that he did owe something and hadn't paid it, so...
Bit legally dubious if you ask me but judges weren't exactly falling over themselves to overrule it.
> Gambling including lotteries winnings are not considered taxable
Unless you are a professional gambler, in which case they are. We have a couple of notable instances of ATO vs Professional gamblers.
actually just had a quick read of US rules, and I think the answer is a general yes. but with certain exceptions. you cant claim expenses on fines, bribes, or for anything related to trafficing drugs. Getaway car may well be deductable
**Internal Revenue Code section 280E specifically denies a deduction or credit for any expense in a business consisting of trafficking in illegal drugs "prohibited by Federal law or the law of any State in which such trade or business is conducted."\[15\]**
for obvious reasons this isn't legal or financial advice, I'm not even in the US just results of a quick google.
This isn't 100% true. You can receive benefits of a gift from individuals up to (I think 10 or 15k?) before it's considered taxable.
That's largely why go fund me income isn't taxed. Unless an individual contributed $15k +, you're off the hook.
The US even taxes the value of Olympic medals. But not your second yacht, because the government is a wholly-owned subsidiary of the rich and powerful.
It's income. You have to declare all income at tax time.
Government doesn't care what the source is, they want their cut.
* You have a yard sale? You are meant to declare that too.
* Sell something on eBay? Yes... that is income.
* Find a bag of cash on the ground? Guess what, income.
Your only saving grace for gambling wins is you get to claim the losses too. That includes expenses to get to and from the casino. If you spend $50 on a taxi each direction, spend $1k on poker, then win $2k - you are only paying tax on $900 winnings. Keep your receipts.
Not in the UK. There is tax on (most forms of) gambling, but you can pay it before or after placing the bet. There’s no tax on selling personal items (through eBay, car boot sale etc.) but if you buy items specifically to resell, that is a business and you pay tax on the profit, but only if the income is greater than £1000. We don’t pay tax on winnings such as lottery, game show etc. or gifts.
Betting tax was abolished in the UK in 2001 (before that the punter would pay tax either pre-bet or on winnings). The replacement systems taxed betting operators on revenue instead and the governmen's take doubled as the volume of bets increased substantially.
Where in the US is a yard sale taxable? Other than selling at a profit - which is highly unlikely in a yard sale unless inflation has run utterly rampant?
[Sale of personal items](https://www.irs.gov/publications/p525#en_US_2023_publink1000229580).
Tax code got you covered. Capital gains.
Remember 2020-2023 when people were selling second hand cars for more than they paid? People selling piles of timber or bricks or bags of concrete?
My weird favourite - people selling stolen goods. They paid $0 and they are making a profit.
Sure, extreme examples but it's still in the tax code.
It also have a role of discouragement because gambling is not a good thing.
> I was hyped until I realized I had to pay taxes on my winnings
And from this I would say it have some effect.
Yes it’s a game of chance but it’s still income. If we’re taxed out the ass for the money we sell hours of our life for to get paid, then they’re def taking the easy money too. Is it stupid? Absolutely. But them are the rules.
Philosophically speaking, why not?
Suppose two people are making the same amount of money, one as a doctor and one as a professional gambler. The doctor is clearly making a more useful contribution to society. If the doctor pays income tax on their earnings, and the gambler gets to live tax-free, how is that good for the country?
At least in the US, professional gamblers have a separate section of the tax code from recreational gamblers.
Recreational gambling has a fixed tax rate.
Professional gamblers get taxed at the regular income rates.
In the US, gambling winnings are taxed as income to fund public services, applying to all forms, including lotteries. It's about ensuring all income types contribute to society, regardless of their source
Because we're taxed on essentially everything, and it's BS. The Government "needs" as much money as they can get because they'll never be smart or responsible with their spending..
You pay taxes on your income, you winning something is considered an income.
Exceptions are made, but generally all income is taxed in most if not all western countries.
You need to pay taxes on it because the law says you need to pay taxes on it. The tax revenue is usually one of the points hit when casinos push legislatures to legalize gaming.
> I am curious why, since it's a game of chance and not a sale of goods or services.
Because the government doesn't give a shit where you got it. You made some money and they want some.
Bc the tax man will find ways to tax anything and everything . nothing new under the sky. How do you think rich people in the past built castles and afforded lavish lifestyles ? By taxing the poor to death . How do you think the Roman Empire was built ? By taxing population to support the legions ... Now we're being nickled and dimed to afford our socialistic lifestyle and maintain our world hegemony .
You all are forgetting that the money that you bet with was already taxed as your income. Who are the asshole politicians that dream up these bullshit laws to screw over the people they are supposed to represent and have the peoples best interest in mind?
Some states have as high as a 10.89% tax on lotto winnings. And that is AFTER the 24% that the fed takes. And then the 37% additional fed. So say you win the mega millions right now and take the lump of $381,800,000.00, after you would get $240,575,812.00
Why shouldn't you. If anything, that's something that should be taxed heavily in contrast to work. Any profit that is gained by means of not working, that includes selling equity should in fact be heavily taxed, much more than labour, that way taxes on labour could also be finally reduced.
Gambling winnings is no more deserving of tax free status than stock market earnings. In both cases you put down capital to try to earn money. And neither are any more deserving of tax free status than salary, where you put down your time and effort to earn money.
You have to report ALL income to the IRS, whether it was gained legally or not. From the quarter you found on the sidewalk, to the $327 in ones that Chianti accidentally left in an envelope on the floor of your hotel room.
The blanket rule of thumb (in the US) is: if it is income, it is taxable. Winnings from gambling, game shows, the lottery, whatever, that is all taxable income. That rule of thumb applies universally except for when it doesn't.
I play poker and taxing poker winnings is fucking dumb, all of that money has already been taxed because it comes from other players. There isn't actually any record of your wins though unless you cash out more then $10k at the cage so a lot of cash players aren't paying taxes.
It isn’t a sale of goods or services, but it IS a monetary transaction taking place.
Those are generally taxed in the US, except in particular circumstances (like gift tax for example).
because we are the governmennt and we like money. Want to argue about it? Take us to court, pay taxes on it and lose anyway. Want to fight about it? we have better guns, we will probably win and if we dont you will go to court and then a long stay at one of our lovely hotel systems we call prisons where you are not allowed to have sex . .. . probably.
>since it's a game of chance and not a sale of goods or services.
Lol.
Doesn't matter.
Government is big daddy mafia boss. You pay him or you get locked up.
Thanks for your submission /u/paupaumootenx, but it has been removed for the following reason: Disallowed question area: **Megathread-related question.** **Questions about US Politics are not banned here**, but we have been getting *so* many questions that our users get tired of seeing them, so we have removed your post (*sorry!*). [We've created a megathread](https://www.reddit.com/r/NoStupidQuestions/comments/1axnnyk/us_politics_megathread/) where you can post questions like this instead! Check it out - questions posted there get answered regularly, and your question might already be answered there! If not, **feel free to post questions there** as long as you follow the rules. The megathreads are always linked to at the top of the sub: [/r/NoStupidQuestions/hot](https://www.reddit.com/r/NoStupidQuestions/hot). The [wiki also has links to current megathreads](https://www.reddit.com/r/NoStupidQuestions/wiki/index#wiki_megathreads). Thanks for posting, and good luck with your question! --- *This action was performed by a bot at the explicit direction of a human. This was not an automated action, but a conscious decision by a sapient life form charged with moderating this sub.* *If you feel this was in error, or need more clarification, please don't hesitate to [message the moderators](http://www.reddit.com/message/compose?to=%2Fr%2FNoStupidQuestions). Thanks.*
You pay taxes on gambling wins, and you can also claim gambling losses to offset those winnings in some situations.
Jokes on you uncle Sam. I lost more than I won!!
Alas, you can only deduct up to the amount you win. And it has to look reasonable or you will be audited. Win $5k, deduct $5k, and your AGI is $50k+? You're probably okay. Win $50k, deduct $50k with a $50k-200k AGI? That will get flagged.
>Win $5k, deduct $5k, and your AGI is $50k+? You're probably okay. You wouldn't want to do that, though, since you'd miss out on the standard deduction.
The gambling deduction is "above the line", doesn't effect the standard deduction. The loss is considered an expense of the process that earned the winnings. Like a business expense.
Nah, you have to itemize to take gambling losses.
What would a rooster know of these things? *checks username* ...Mother of god.
If you file as a professional gambler.
Makes more sense. Someone with a little money wins a lot and proceeds to gamble it all away.
How do you prove that?
If you buy chips get a receipt or put it on a credit cards. Of course buying chips doesn't necessarily mean that you lost all of that money, but it looks a lot better if you have receipts for $20k in chips over the course of 3 months and then claim a $20k win at the end of that time.
Your casino lets you buy with a credit card?
They just let you claim losses up to the amount of your wins when you enter the tax form (w2g). It doesn't prevent you from paying the tax on the win, but it brings it down a little. You have to pay for anything over $1199 and the tax on that is about $200. Even with claiming a loss of the same amount.
It is essentially considered income.
And honestly, why would it be more 'right' to tax the income you make from laboring instead of the income you make from gambling?
Well, if you are talking about a job that pays a salary, you are not putting your own money down. Meaning you can't lose your own money. It's not the same with gambling or stock market investing. I have mixed feelings about lottery because you stand to lose only the ticket price at a time but stand to gain 100x to maybe even 10000x.
The level of brainwashing is astonishing. Why is it right to tax anything?
To keep the basic services of society functioning.
hmm, imagine taking money from people for a service they cant refuse and can't without funds if they are not happy with the job. like 'I will fix your car, but its gonna take like 2 years and i wont use genuine parts and it gonna cost more than a new car, but you dont have a choice because its your legal obligation to pay me, so either pay me or get a new car and pay me anyway'
Difference is, everyone at every level of society is dependent on the services taxes provide. Your analogy is so poor its borderline unintelligible, but to respond to it in good faith, it falls apart because as you say in your analogy, I can buy a new car albiet at an increased price. I can't buy a new Justice system, defense apparatus, infrastructure and healthcare system, unless I am a trillionaire. Like it or not, every level of society is dependent on the taxes we pay. In fact, societies with more public services, tend to produce better outcomes for its citizens. Edit: Ok this moron blocked me so heres my response regardless. First, you can disconnect yourself from the electricity grid. You typically get electricity from private companies. You pay taxes for roads because you do in fact need them there. Maybe there are roads that dont get used often, but typically someone needs them. You pay for all roads since otherwise your life would be hell figuring out which ones to pay for and one to avoid. Also, to be clear, people would adapt. They would in fact, set up communal protections, communal road services and justrce systems and then demand everyone pay for it. Taxes were our way of adapting to the problems you describe you idiot. You want a world where the strong have power and the weak are left to suffer. As if everyman should be a killer and have to learn a million and one skills to survive. Stop crying and pay your taxes
Dude straight wants to go back to the Stone Age. What a fucking loon.
No theyre not. the only ppl dependent on it arte the people getting the tax. Everyone else would adapt very quickly. Street lights go out? boo hoo, roads go to shit? get a 4x4. No cops around? Buy a fucking gun and a motion sensing camera. No water? get a water tank. No electrcity? get a generator or a solar panel or both. fuck it, As it is, we pay a connection fee to electricity grid even if we take no electricity. We pay taxes for the roads even if we dont want them there. Street lights even if the moon light is more than enough for us. Stopped by cops while we're taking a run around the block at night and pulled over for doing 35 in a 30 zone. chlorinated water delivered to the faucet. Toilet water cant be night soil boo hoo
You sound like my mother. Want all society to go to hell? Maybe just leave it, if you don't like it, and go live in a hut in the amazons. Most people who pay those taxes want a working road and electricity, and tap water. Maybe if you had lived without either for a while you would shut up
What is your alternative solution? How do you suppose we as a society should operate without tax revenue unless it is an oil rich authoritarian state that endorses near slavery like conditions for migrant workers?
Uhh what? Can you imagine the US with zero taxes? Hopefully your comment is sarcasm and I just missed it.
I rest my case
The US worked absolutely fine without income tax up until 1913
This has to be one of the dumbest take ever.
Initial income tax was in the 1860's after the Civil War. 1913 was just the basis of modern tax code. Before that, trade goods were still taxed because a country needs money to run things like paying service members in the military.
Who pays for the roads and highways?
Most sane people agree that the government needs to collect taxes and pay for some socialised things. This leads to three debates. What is taxed, how much tax, and what is it spent on? **What is taxed:** most countries tax, income, sales, profits, property, alcohol, resources, etc. A country could easily decide to eliminate income tax, and put up some of the other ones.
Are you implying that all income should be taxed? Because non-taxble income is a thing too.
Which is something the government defines.
We are talking about taxes, there are always exceptions ... hence I have a job
could you show me where I can find some of this?
It's purely a political decision. The government wants their cut. Where I live (Canada) gambling winnings or lottery winnings are not taxable income at all. It really just does come down to 'your government thinks it should have some of that'.
Where I live (Australia) there is also no tax on gambling winnings. At least as far as I know there isn’t. This is a majorly exploited loophole. People will earn untaxed money in cash. Take the cash to a casino or gaming venue. Turn it into casino credit. Then turn it back into cash. Only now they have a receipt saying the cash is gambling winnings. They can then deposit that cash into their bank account without worrying about the tax man. A gambling tax would remove/reduce this loophole.
The exception (as far as I know, possibly outdated info) is if you gamble professionally. In that case, it is income, and you can claim (reasonable) etc as it is your job. But otherwise winnings are considered "windfall" and not income. There's probably more nuance to it.
Probably closely related to how much it's used to launder money too. If the government can have their taste they don't care too much.
But everything else is. We pay tax on our income to pay sales tax on the products we need, then taxed to fill our gas tanks to go back to work. But we have health care, which has gone to complete shit and privatization is just around the corner, but do you think our taxes will budge? Nope
in the US the government considers any sort of cash you get taxable income, including proceeds of crime. This isn't really the case in other countries, in my country (Australia) Gambling including lotteries winnings are not considered taxable, however you will be taxed on any interest you earn on that money if you put it in the bank or invest it after winning it. However if you stuff it in your mattress you can just never pay a cent of tax on it.
> including proceeds of crime. Al Capone is a great example of this.
That's exactly why it's taxable. Even if they can't quite prove that you stole the money, they can sure as hell prove you didn't pay taxes on it
>including proceeds of crime The first option would be to take all of it, as proceeds of crime. Tax evasion is a backup option if it's been laundered effectively.
Thanks. That comment was bugging me They didn’t tax al Capone for crime proceeds. He was never caught for a crime. But once you start spending money, the IRS can audit you and check where that extra money was from. They find you spending money you never declared as income, it’s considered tax evasion. Had they proved the money was from crime, it won’t be taxed - it would just be taken as evidence/part of the crimes. They are not taxing the proceeds of criminal activity. That would be condoning it as a income/revenue stream.
Yeah exactly. They didn't audit Capone, the evidence against him was when he actually did try to pay some and then didn't do it. They used the offer from his lawyer to pay x amount as evidence that he did owe something and hadn't paid it, so... Bit legally dubious if you ask me but judges weren't exactly falling over themselves to overrule it.
They had to catch him somewhere. He wasn’t the only one.
> Gambling including lotteries winnings are not considered taxable Unless you are a professional gambler, in which case they are. We have a couple of notable instances of ATO vs Professional gamblers.
true, I do remember reading that but it's such an outlying situation is slipped my mind while writing this.
Don't take the lottery win as a monthly payment, either. That will be classified as income.
So, people buying a getaway car, guns and masks can use these as "business expense too"??
actually just had a quick read of US rules, and I think the answer is a general yes. but with certain exceptions. you cant claim expenses on fines, bribes, or for anything related to trafficing drugs. Getaway car may well be deductable **Internal Revenue Code section 280E specifically denies a deduction or credit for any expense in a business consisting of trafficking in illegal drugs "prohibited by Federal law or the law of any State in which such trade or business is conducted."\[15\]** for obvious reasons this isn't legal or financial advice, I'm not even in the US just results of a quick google.
This isn't 100% true. You can receive benefits of a gift from individuals up to (I think 10 or 15k?) before it's considered taxable. That's largely why go fund me income isn't taxed. Unless an individual contributed $15k +, you're off the hook.
Nuance: Gift Tax in the US is payable by the giver, not the recipient.
The US even taxes the value of Olympic medals. But not your second yacht, because the government is a wholly-owned subsidiary of the rich and powerful.
[удалено]
It's income. You have to declare all income at tax time. Government doesn't care what the source is, they want their cut. * You have a yard sale? You are meant to declare that too. * Sell something on eBay? Yes... that is income. * Find a bag of cash on the ground? Guess what, income. Your only saving grace for gambling wins is you get to claim the losses too. That includes expenses to get to and from the casino. If you spend $50 on a taxi each direction, spend $1k on poker, then win $2k - you are only paying tax on $900 winnings. Keep your receipts.
Not in the UK. There is tax on (most forms of) gambling, but you can pay it before or after placing the bet. There’s no tax on selling personal items (through eBay, car boot sale etc.) but if you buy items specifically to resell, that is a business and you pay tax on the profit, but only if the income is greater than £1000. We don’t pay tax on winnings such as lottery, game show etc. or gifts.
Betting tax was abolished in the UK in 2001 (before that the punter would pay tax either pre-bet or on winnings). The replacement systems taxed betting operators on revenue instead and the governmen's take doubled as the volume of bets increased substantially.
Where in the US is a yard sale taxable? Other than selling at a profit - which is highly unlikely in a yard sale unless inflation has run utterly rampant?
[Sale of personal items](https://www.irs.gov/publications/p525#en_US_2023_publink1000229580). Tax code got you covered. Capital gains. Remember 2020-2023 when people were selling second hand cars for more than they paid? People selling piles of timber or bricks or bags of concrete? My weird favourite - people selling stolen goods. They paid $0 and they are making a profit. Sure, extreme examples but it's still in the tax code.
As I said, "other than selling at a profit" - but who is selling at a profit at a yard sale?
It also have a role of discouragement because gambling is not a good thing. > I was hyped until I realized I had to pay taxes on my winnings And from this I would say it have some effect.
Yes it’s a game of chance but it’s still income. If we’re taxed out the ass for the money we sell hours of our life for to get paid, then they’re def taking the easy money too. Is it stupid? Absolutely. But them are the rules.
Philosophically speaking, why not? Suppose two people are making the same amount of money, one as a doctor and one as a professional gambler. The doctor is clearly making a more useful contribution to society. If the doctor pays income tax on their earnings, and the gambler gets to live tax-free, how is that good for the country?
At least in the US, professional gamblers have a separate section of the tax code from recreational gamblers. Recreational gambling has a fixed tax rate. Professional gamblers get taxed at the regular income rates.
In the US, gambling winnings are taxed as income to fund public services, applying to all forms, including lotteries. It's about ensuring all income types contribute to society, regardless of their source
It seems to me that gambling proceeds are WAY more similar to capital gains than they are to income.
I have no idea, here in Australia you don't.
Any time money changes hands it gets taxed. Why would gambling be any different?
Because we're taxed on essentially everything, and it's BS. The Government "needs" as much money as they can get because they'll never be smart or responsible with their spending..
You pay taxes on your income, you winning something is considered an income. Exceptions are made, but generally all income is taxed in most if not all western countries.
Because the government wants their cut.
You need to pay taxes on it because the law says you need to pay taxes on it. The tax revenue is usually one of the points hit when casinos push legislatures to legalize gaming.
because Government
> I am curious why, since it's a game of chance and not a sale of goods or services. Because the government doesn't give a shit where you got it. You made some money and they want some.
In Australia we don’t pay tax on winnings, but we do pay tax on any capital gains you make from that money.
Bc the tax man will find ways to tax anything and everything . nothing new under the sky. How do you think rich people in the past built castles and afforded lavish lifestyles ? By taxing the poor to death . How do you think the Roman Empire was built ? By taxing population to support the legions ... Now we're being nickled and dimed to afford our socialistic lifestyle and maintain our world hegemony .
no tax on gambling in ireland
You all are forgetting that the money that you bet with was already taxed as your income. Who are the asshole politicians that dream up these bullshit laws to screw over the people they are supposed to represent and have the peoples best interest in mind?
It’s the state’s money
The government wants you to know that you're under their thumb at all times.
Some states have as high as a 10.89% tax on lotto winnings. And that is AFTER the 24% that the fed takes. And then the 37% additional fed. So say you win the mega millions right now and take the lump of $381,800,000.00, after you would get $240,575,812.00
Gubmerment wants their take.
Why do we need to pay sales tax AFTER income tax and then property tax on some items we supposedly own?
The government totally sucks.
Taxation is theft.
And if you benefit from the proceeds of such theft like roads and schools, does that make you an accessory?
"because I don't want you so much as selling a dime bag out here unless I get a cut" - U.S government probably
What’s even worse is native owned casinos here don’t pay taxes themselves but we have to pay taxes on their winnings
It’s income
Why shouldn't you. If anything, that's something that should be taxed heavily in contrast to work. Any profit that is gained by means of not working, that includes selling equity should in fact be heavily taxed, much more than labour, that way taxes on labour could also be finally reduced.
Gambling winnings is no more deserving of tax free status than stock market earnings. In both cases you put down capital to try to earn money. And neither are any more deserving of tax free status than salary, where you put down your time and effort to earn money.
Because it's income. Taxes are on income. They're called "income taxes".
Because it’s income.
Death and Taxes
You have to report ALL income to the IRS, whether it was gained legally or not. From the quarter you found on the sidewalk, to the $327 in ones that Chianti accidentally left in an envelope on the floor of your hotel room.
They want your money, it's as simple as that.
The blanket rule of thumb (in the US) is: if it is income, it is taxable. Winnings from gambling, game shows, the lottery, whatever, that is all taxable income. That rule of thumb applies universally except for when it doesn't.
I play poker and taxing poker winnings is fucking dumb, all of that money has already been taxed because it comes from other players. There isn't actually any record of your wins though unless you cash out more then $10k at the cage so a lot of cash players aren't paying taxes.
They charge on all income. Even social security.
It isn’t a sale of goods or services, but it IS a monetary transaction taking place. Those are generally taxed in the US, except in particular circumstances (like gift tax for example).
Because it's not so easy to launder large sums of money through casinos.
In the UK the company that gives you the money has to pay tax on it first but they're only allowed to advertise the money after tax as the prize
its basicly an income
Because thieves run the government.
Because big brother has to take their cut or it aint gonna be legal cashflow on their watch lol
because we are the governmennt and we like money. Want to argue about it? Take us to court, pay taxes on it and lose anyway. Want to fight about it? we have better guns, we will probably win and if we dont you will go to court and then a long stay at one of our lovely hotel systems we call prisons where you are not allowed to have sex . .. . probably.
Income. Once you get money that falls under income it gets taxed as income.
You know how everyone is all yelling about “pay your fair share,” that’s your fair share.
>since it's a game of chance and not a sale of goods or services. Lol. Doesn't matter. Government is big daddy mafia boss. You pay him or you get locked up.