I'm researching the topic on how many users actually report their winnings or losses to the tax authority, and from the current research there's a major discrepancy in the processes from country to country;
Now I'm quite curious how other gamblers are managing this part of the story, if they manage it at all.
So, question to you, did you ever consider paying taxes on your gambling winnings, or deduct the taxes with the losses you've created? If not, what is the reasoning behind it?
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#1. Residents of the UK, Canada, and Australia don’t need to pay anything at all, as these governments view this money as the result of good fortune and do not view gambling as a profession. These earnings do not need to be reported, and nothing is owed on them.
#2. Malta is also pretty simple. Gambling winnings are only taxed if the player is a professional gambler, though this term is not strictly defined, but if you're earning above the "grace amount" of 12950 EUR, you can apply for it.
#3. The US taxes all gambling winnings as income. In fact, there’s even a special form for documenting your gambling wings: Form W-2G. This money is counted towards your yearly income and will be taxed at whatever bracket you fall into at both the state and federal levels. You must keep track of the type of gambling, the amount of the gambling winnings, and the general ratio of the winnings to the wager, as these will all be needed for filing. Conversely, any gambling losses that occur on a real money online casino platform can be tax deductible in an amount up to your total yearly winnings. Losses and winnings must be filed separately and not as a net amount.
Source: EsportsHeadlines.com #2. Malta is also pretty simple. Gambling winnings are only taxed if the player is a professional gambler, though this term is not strictly defined, but if you're earning above the "grace amount" of 12950 EUR, you can apply for it.
#3. The US taxes all gambling winnings as income. In fact, there’s even a special form for documenting your gambling wings: Form W-2G. This money is counted towards your yearly income and will be taxed at whatever bracket you fall into at both the state and federal levels. You must keep track of the type of gambling, the amount of the gambling winnings, and the general ratio of the winnings to the wager, as these will all be needed for filing. Conversely, any gambling losses that occur on a real money online casino platform can be tax deductible in an amount up to your total yearly winnings. Losses and winnings must be filed separately and not as a net amount.
Now I'm quite curious how other gamblers are managing this part of the story, if they manage it at all.
So, question to you, did you ever consider paying taxes on your gambling winnings, or deduct the taxes with the losses you've created? If not, what is the reasoning behind it?
There are exceptions but you could generally consider most gamblers to be in the general league when it comes to their finances. It's a fun hobby and they spend a bit of leisure cash on it, winning some weeks and losing other weeks. There is only a tiny fraction of people who will need to look at their gambling winnings to the level that you are suggesting. People who might be in the esports scene, especially good sports bet gamblers and even professionals in areas like poker. I wouldn't imagine that most countries will benefit from doing anything when it comes to their gambling spend, they won't get any tax breaks because it is considered a leisure/optional activity and has even traditionally been frowned upon as a "sin" so is more likely to be penalized than anything.
), but I don't think I've ever won anything big enough that I need to pay tax for it, at least from what I know. I never really looked up the minimum amount needed for tax reports anyway. 
