Do I need to pay Tax on my Crypto Gambling Winnings? A guide - page 5.

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Quote from: wxa7115 on March 23, 2021, 02:21:42 PM

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

The problem isn't about doing like that small job and showing it that way, but it's like when it's not even allowed in your country (illegal let's say) but you still do it, they'll definitely get you and make you either pay a hefty sum to save yourselves from their trap or get trapped. It's about how you manage to take your money out of it.

Quote

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Doesn't really matter as even if the name doesn't flash anywhere, the gambling companies that abide by a state's rules are definitely going to give the details of all the trades/deals/bets they go through. So you'll be caught there. If you try hiding it with crypto, then too you'll eventually need to pay taxes on your capital gains through crypto.

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Quote from: wxa7115 on March 23, 2021, 02:21:42 PM

Quote from: goinmerry on March 18, 2021, 05:38:21 PM

Quote from: mindrust on March 18, 2021, 04:47:28 PM

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Hard to believe on which a country doesnt really have any tax because we know that when it comes to development and progress then this tax plays a vital role
which means to believe that citizens wont really be needing to pay up something.

Back on topic about paying up tax with crypto gambling winnings then for sure this will basically focused if those funds had been converted to fiat.

Ive seen that most people doesnt have a problem with that because crypto isnt still regulated into their places.Therefore, they are still on the safe side.

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Quote from: chaser15 on March 23, 2021, 03:11:11 PM

Quote from: wxa7115 on March 23, 2021, 02:21:42 PM

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Big or not, it depends on the law per country.

For example, in a lottery (fiat), there are countries that charge tax when someone hit the jackpot. Recently if I'm not mistaken, maybe last January or February, there is a thread here that someone won a big jackpot on the lottery but the winner is charged with a tax. That was a usual regulation. And here in our country, lottery winners are tax-free regardless of how much they won.

Playing in a crypto-gambling site, there is no worry that we will pay tax because almost all gambling sites related to crypto aren't under the jurisdiction of any countries. The worst-case scenario however is, if that country totally bans gambling in their country whether physical or online, not just tax but the user involve will face some charges accordance with their law.

The location of the casino itself is completely irrelevant when it comes to paying your taxes, what matters is where are you located and what is your citizenship, if the country in which you are located currently does not charge any tax on your gambling winnings then you are in good luck but as far as I know you still need to declare that you got those winnings.

But if the country in which you live actually charges taxes over your gambling income then you have no other choice but to declare those winnings and pay those taxes, and if those winnings were in a cryptocurrency casino this can be even more complex because you may end up having to pay capital gains taxes as well.

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Quote from: wxa7115 on March 23, 2021, 02:21:42 PM

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

Big or not, it depends on the law per country.

For example, in a lottery (fiat), there are countries that charge tax when someone hit the jackpot. Recently if I'm not mistaken, maybe last January or February, there is a thread here that someone won a big jackpot on the lottery but the winner is charged with a tax. That was a usual regulation. And here in our country, lottery winners are tax-free regardless of how much they won.

Playing in a crypto-gambling site, there is no worry that we will pay tax because almost all gambling sites related to crypto aren't under the jurisdiction of any countries. The worst-case scenario however is, if that country totally bans gambling in their country whether physical or online, not just tax but the user involve will face some charges accordance with their law.

wxa7115

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Quote from: goinmerry on March 18, 2021, 05:38:21 PM

Quote from: mindrust on March 18, 2021, 04:47:28 PM

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

Unless you are living in a country with no income taxes you still need to pay depending on where you live, however as people have said before if the amount you have won is small do not even bother, this is similar to what happens when a kid does some odd jobs during the summer to buy a video game or a bicycle, no one is going after him even if he generated some income.

But if the wins are big and your name figures out somewhere then the government is going to find out and come knocking at your door, so in that instance it is better to consult a professional and pay the required taxes.

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Quote from: Rengga Jati on March 18, 2021, 06:07:10 PM

OP, can you explain this?
Or you are part of the team and you are the content writer of the website?
If yes, at least you need to link your site and gives the link in your profile. But you don't do it.
So, I really doubt that it is you.

The OP hasn't been online for a week now (three days after this thread was created) - I really have my doubts that the OP is who they say they are (they probably started the thread in the hopes of gaining some merits then farming the merits on to their main account)

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Quote from: Vishnu.Reang on March 15, 2021, 01:59:37 AM

Here in India we are facing an even bigger issue. Gambling (both physical and online versions) are not legal here. So if someone wins a big amount, that can't be credited directly to the bank account. Some of my friends have faced the issue. They had to spent a lot of time and money in consulting tax experts and finally resolved the issue by showing the amount as gift received from non-family member.

And there's also another ban for cryptocurrencies. This means that two things, gambling, and cryptos are banned there.

Quote from: Vishnu.Reang on March 15, 2021, 01:59:37 AM

Still, this method is not 100% safe, as the tax authority can ask for additional clarification at any point.

That's a suspicious reason if it's going to be a gift from someone. Tax staff would really suspect and find it odd if you say so.

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Quote from: Timelord2067 on March 09, 2021, 03:55:46 AM

You wrote that?

On the page it says the Author is "BitEdge" - is that you? Welcome to the Forum.

(Did you know there's already a user here call "BitEdge" who's profile has links to that site already? Roll Eyes

OP, can you explain this?
Or you are part of the team and you are the content writer of the website?
If yes, at least you need to link your site and gives the link in your profile. But you don't do it.
So, I really doubt that it is you.

Well, about tax, in my country itself, gambling is something illegal and of course, there will be no tax for it. Sometimes, we also feel difficult to withdraw the rewards from gambling sites into our local exchanges. Sometimes, it needs more time to the exchange to process and also investigate the transaction.

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Quote from: goinmerry on March 18, 2021, 05:38:21 PM

Quote from: mindrust on March 18, 2021, 04:47:28 PM

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

Correct. This would matter always on the rules or laws that had been set and also varying on the situation because as mentioned about regulated company where those winning tax had already been paid
which simply shows that there are exclusions just because it had been already done by the operator or handler of such service neither if its talking about gambling or any other out there.
Also, why you would really be needing to declare and go to the government and do tell that you do need to pay up tax just because you do win in crypto.It would really be
just ending up into their own pockets.

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Quote from: mindrust on March 18, 2021, 04:47:28 PM

If you inform the government about your winnings you'll probably always have to pay taxes.

Not exactly. It's not how it works. What if you got that winnings on a regulated company? The government won't bother with your winnings. Taxes are paid by the companies and site owners if regulated and not to their users.

For crypto, they also won't bother as it out of their jurisdiction especially when there are no clear regulations about crypto in that country. It's now with the crypto exchange how they will put terms regarding receiving money from a gambling site.

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Quote from: mindrust on March 18, 2021, 04:47:28 PM

If you inform the government about your winnings you'll probably always have to pay taxes.

This will depend on which country they live in, I guess the most strict countries that have also very strict on implementing to pay tax is in the US.
But if you're using cryptocurrency and not using the custodial wallet, that will I guess fine but if so, it is better to file and report your tax claim.

However, that is not mandatory or traceable if you know how it works. You can completely avoid taxes if you want because the government nothing have to do with the cryptocurrency since isn't regulated. So I guess, that's not mandatory at all and you nothing to worry about.

mindrust

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If you inform the government about your winnings you'll probably always have to pay taxes.

Why bother with it if they cannot find out about it unless you tell them? (I am assuming that you are not using Coinbase wallet because these mf'ers would probably report your suspicious outgoing tx's to the IRS)

wxa7115

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Quote from: judeafante on March 13, 2021, 04:32:34 PM

Quote from: AOBTCT6 on March 09, 2021, 03:37:41 AM

A common question that I see asked is "do I need to pay tax on my crypto gambling winnings?".

Even if I want to, our country does not have rules or tax filling form about online gambling, our income tax does not include online gambling yet, I don't want to declare it now, since they are not asking and do not have regulation on it, maybe in the future when they have an entry for gambling winnings, since I play in Crypto type of online gambling our government does not have a regulation yet on taxing people who are involved in Cryptocurrency too.

This is definitely an issue, most governments still ignore bitcoin which means that even a citizen that wants to pay his taxes for the most part has no way to do it, it is better to not bring attention to yourself by asking how to do it especially if the amount is small.

But in the case the profits you have had are significant then it is time to consult with a lawyer about how to pay them because even if cryptocurrencies are not specifically stated in the tax code there could still be ways in which you could pay the taxes you owe to the government.

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Quote from: Vishnu.Reang on March 15, 2021, 01:59:37 AM

Here in India we are facing an even bigger issue. Gambling (both physical and online versions) are not legal here. So if someone wins a big amount, that can't be credited directly to the bank account. Some of my friends have faced the issue. They had to spent a lot of time and money in consulting tax experts and finally resolved the issue by showing the amount as gift received from non-family member. Still, this method is not 100% safe, as the tax authority can ask for additional clarification at any point.

banned gambling is worst than allowed gambling but you can get taxed because you can choose to pay tax and play gambling . its risky playing gambling if if its not legal but if its not legal why will your friends got charge by a tax ? smells fishy huh .
where would the amount go if not in banks , was it in a crypto wallets but why would they find out when crypto transactions are anonymous and it was thier advantage if the money wont go in a bank because bank will question you and will charge you big

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Quote from: jostorres on March 17, 2021, 07:54:41 AM

Quote from: ReiMomo on March 13, 2021, 05:09:43 PM

I guess there is a minimum amount that you can able to report your gambling winning in your country, if that is a small amount, I guess don't bother them because they are busy compiling all files of big taxes. That is fine if a small amount, but if those worth billions of dollars, it will I guess good if you claiming casino winnings on your taxes.

If you are paying taxes on your winnings then either small or big, comply with the laws because it makes no sense saving small taxes and getting into trouble later despite paying the bigger taxes when winning big. I don't think anyone has ever won billions of dollars though from any crypto casino, but yeah I get the point.

If you actually win such a huge amount you will be most likely asked for KYC and then you are obviously forced to pay taxes because the casino might report your winnings to the legal departments.

This is the best option. If you are liable to pay taxes, just pay it. Pay your due properly and promptly and you will not be worrying about it anytime. If you will try to get away from your tax responsibilities, you are to blame if the time will come when the IRS or your country's tax department will come after you, prosecute you, or even put you to jail. That is not worth it.

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Quote from: ReiMomo on March 13, 2021, 05:09:43 PM

I guess there is a minimum amount that you can able to report your gambling winning in your country, if that is a small amount, I guess don't bother them because they are busy compiling all files of big taxes. That is fine if a small amount, but if those worth billions of dollars, it will I guess good if you claiming casino winnings on your taxes.

If you are paying taxes on your winnings then either small or big, comply with the laws because it makes no sense saving small taxes and getting into trouble later despite paying the bigger taxes when winning big. I don't think anyone has ever won billions of dollars though from any crypto casino, but yeah I get the point.

If you actually win such a huge amount you will be most likely asked for KYC and then you are obviously forced to pay taxes because the casino might report your winnings to the legal departments.

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Here in India we are facing an even bigger issue. Gambling (both physical and online versions) are not legal here. So if someone wins a big amount, that can't be credited directly to the bank account. Some of my friends have faced the issue. They had to spent a lot of time and money in consulting tax experts and finally resolved the issue by showing the amount as gift received from non-family member. Still, this method is not 100% safe, as the tax authority can ask for additional clarification at any point.

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Quote from: ?? on ??

Indeed. We do not want to make our bank suspicious and ask us about the money, so we need to prevent withdrawing in a large amount. If you really need big money, maybe you can search for help from the local seller, so they will send the money to your bank account, which can avoid the bank's suspicion. Even if we need to pay the taxes, I think the taxes will apply to us at the end of the month and not every time we make a transaction.

I hate it when the Banks interrogated me about my own money, they will ask you questions that already been asked before just to make sure that you're telling them the truth about your money source. Banks are tricky that's why if you have a huge amount of money in your wallet, you should know how to withdraw them separately once you withdraw them at once things will not look good especially when you don't have any documents to show them.

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Quote from: ethereumhunter on March 14, 2021, 09:37:56 AM

That will depend on your country's regulations because each country will use a different thing for the gambling business. If your country prohibits people from playing gambling, but you are still playing gambling using VPN, I do not think you need to pay the taxes because your government will not know that you are playing gambling unless you withdraw the money in a large amount. If so, that can make your bank suspicious and investigate your account, and they will ask you where the money comes from.

It's quite hard to withdraw money from banks when it comes in gambling profit sometimes even if it comes in trading, so make sure to only withdraw minimal amount especially if the country is not yet aware that crypto exist since even banks don't know what crypto is and become too suspicious whenever your bank account received suddenly money. The taxes will follow once the money is converted into fiat so it's fine even there's no tax in winnings.

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Quote from: Latviand on March 10, 2021, 09:58:49 PM

Quote from: Twentyonepaylots on March 10, 2021, 04:57:16 PM

Uhh, I'm not sure that question is asked 'that much' here to be discussed in its own right. Still, if you're the real BitEdge then thanks for it anyway. To answer the general questions of the people when it comes to taxation and gambling, you have to understand that it depends on case per case, usually country of operation being the biggest factor and licenses as well.

Some countries don't regulate the taxation in a gambling platform that well so it always depends on your location.

We all know that some countries are prohibiting all forms of gambling, online or physical, fiat or crypto, it doesn't matter as long as there will be no gambling happens.

So it is much better if you will use a licensed gambling platform and it is okay even if you need to pay for taxes with your winnings so that you can continue playing with it.

Taxes are normal and it is needed for the country's economic situation.

Lucky are those countries that don't regulate taxation. In our country, even a small lottery is being taxed. Our government is always looking for ways to collect tax and they will surely let gambling escape being taxed. They legalize gambling for the benefit of getting taxes.

Topic: Do I need to pay Tax on my Crypto Gambling Winnings? A guide - page 5. (Read 996 times)