Q: Do I need to file taxes for online gambling winnings as an F-1 student in PA?
I'm an F-1 student currently residing in Pennsylvania. In 2024, my gross winnings from online gambling apps playing blackjack, roulette, slots, etc., totaled around $17,000, with wagers around $16,000, resulting in a net income of less than $1,000. The apps did not generate a tax document for me based on my activity, and these gross winnings are spread across multiple platforms, with the largest being about $5,000. I have some records available within the apps. Do I need to file taxes for these winnings, and if so, what forms do I need to file? What is the general taxation rate for such winnings?
A:
As an F-1 student in Pennsylvania, you are still subject to U.S. tax laws on your income, including winnings from online gambling. Even though the gambling apps did not issue a tax document, you are still required to report the winnings on your tax return. Since your net income from gambling is less than $1,000, it may not result in a large tax liability, but you still need to file.
You will likely need to file a federal tax return (Form 1040NR, since you're on an F-1 visa) and report your gambling winnings. You'll need to include the winnings as "Other Income" on your return. While gambling winnings are taxed as ordinary income, you can also deduct your losses up to the amount of your winnings, so keeping track of your wagers is essential.
The general taxation rate for gambling winnings depends on your total income and the applicable tax brackets. In your case, since the winnings are relatively small, your tax liability may be minimal. However, it’s a good idea to report everything accurately to avoid potential penalties. If you’re unsure about how to proceed, consider reaching out to a tax professional who is familiar with F-1 student tax issues.
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