Paying Taxes

If I am making decent money each year via off shore books, I am still obligated to pay taxes in the US as that money is a form of income.  I don't live in Nevada, so technically would be considered illegally gambling to my understanding.  

I am guessing you are a client of bettingresource? Me too!

every single thing you said is 100% incorrect!! Actually it is stunning how wrong you are! 

Ugh Joanne 

Thx a ton Gaza.  All of that makes sense.  I'm not familiar with "Bettingresource".  

This is pretty much all wrong.  In fact, the US tax code is designed so that you will NOT get in trouble for reporting "illegal" income.  Simply report it as gambling income and you'll be fine from a legal standpoint.

If we're talking about a few thousand dollars here and there, you're probably fine.  If you're bringing in over 10,000 on a yearly basis, you'd risk jailtime if you didn't report the income.  Especially if it's over several years.

Thanks Kdawgy.  Simply reporting as gambling income sounds right.  No way to know I didn't make that money in Vegas, unless they really dug into my affairs.

Some bad advice on here.  If you get audited you need to explain away every cent.  Simply using your credit card and paying it off with money you get from WU transfers won't cut it.  The IRS will ask you where you are getting this money to pay off your Credit Cards because they will see it is not coming from your banking accounts. 

It all depends how significant your winnings are.  If it is a few thousand, you have nothing to worry about.  If it is more than $10000 net over the year, then you could be in trouble if you get audited. 

Bling, if I were taking 10K+, Id definitely claim every cent.  I guess my bottom line question is, would there be issues with this income coming from off shore books because it is illegal in most states?  Or would it just be the IRS wanting to see the details of the income and gambling law not really coming into play?  I want to be by the book and not have to live in Vegas.

Just don't report any winnings to the IRS. Online Gambling is illegal to begin with and to report winnings to the IRS will open up a can of worms. 

More bad advice.

Federally, you have nothing to worry about.  Now if you live in a state where it is explicitly stated as illegal, like Washington, then I am not sure if the law statute states they can go after you for reporting it as income. 

It is actually pretty simple to report gambling income when you do your tax forms, and you don't even have to list where it came from.  So in reality, the IRS will not know where it came from when they look over your taxes. 

Thanks again Bling.  Seems like the right call is just reporting as winnings on the tax form.  IRS just wants their cut.  

If you do report gambling income from an offshore sports book/s as "other income" on a 1040, aren't you also required to file a W2-G form?

Also, anyone familiar with a W2-G form, can see that a payer's information is required, such as name, street address, Federal ID number etc.
Most or all offshore sports books do not mail a W2 (for obvious reasons), so what then?

what if you win 30k one year and pay taxex. then lose 40k next year. can you get a tax refund on the tax you paid previous year by writing off the loss?

since they dont give a w-2 file it quarterly at 28% if you recieve a w-2g in vegas its 25% pay taxes and keep records the irs doesnt give a rats behind that you gambled offshore they do care why taxes on 30k didnt get paid

I lived in Las vegas for 8 years and never had a job or a paycheck.I made all my income from sportsbooks.I made +$100k per year and never filed an Income Tax because it was none of their business.Even after the Banking Act of 1990,when you had to give a SS# if you bet 10K the fact you bet 10k didn't mean you won 10k.I never got hassled after 1990 and just used chips to skip the whole ss# problem.Cash is your friend and is accepted everywhere,ain't nobodys business but your own. Sportbooks don't hand out W2Gs on 11/10 wagers so how does the IRS know anything?Unless the bet pays off 600-1 a w2g never comes into play. IRS can't audit cash.