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?
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.
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.