Asked in Gaming and Tax Law for New York

Q: Will I have to pay taxes on any gambling winnings earned in other countries (UK), if I bring the money back to the US?

The UK does not tax gambling winnings from casinos, but the U.S does. If I win money at a British Casino, and I bring that money back to the State (I am a U.S resident that has a Visa to stay in the UK), would I need to pay any taxes on such income that I earn? If so, would I need to ask the UK Casino for any documentation or no?

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2 Lawyer Answers
Matthew M Montoya
Matthew M Montoya
Answered
  • Tax Law Lawyer
  • Lone Tree, CO

A: US Citizens or resident aliens are required to report income from whatever source, US or abroad. It doesn't matter whether you bring it back or not - you are required to report it on a US tax return. Failure to properly disclose income from foreign sources or foreign accounts can result in steep penalties.

You should probably contact a professional that regularly handles these kinds of foreign-income and foreign asset disclosure returns. It's better to get compliance right the first time through instead of it potentially becoming a much bigger issue later.

Kunal Patel
Kunal Patel
Answered
  • Tax Law Lawyer
  • Houston, TX

A: If you are either a US citizen or permanent resident, or meet the substantial presence test, you are required to report worldwide income. You'll have to pay taxes in the US on that income, but you can deduct any gambling losses against your gambling income. I would suggest getting all the necessary documents from the UK casino and discussing with a tax attorney who understands expatriate tax. There is a US-UK tax treaty which may provide some relief.

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