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Online Gambling Tax Myths
Internet gambling blasted onto the international scene several years ago. The issue of online casino legislation is a tricky one as many countries have not legalized internet gambling, yet their citizens continue to gamble at off-shore online casino sites. Add to this complex situation the issue of taxation and it is no wonder that there are so many misconceptions and falsehoods surrounding the topic. Let us look at some of the myths about taxation and online casino gambling.
The first thing that many online casino gamblers think is that, since they are gambling on the internet, the online casino is overseas and therefore they are exempt from taxes. This is totally false as United States law specifically states that any income, whether earned in the country or abroad, is taxable. Another amusing misconception is that since online casino gambling is illegal in the United States anyway, the gambler need not pay taxes. Again, this is a falsehood as it is common knowledge that the United States taxes both legal and illegal income.
Some people feel that if they did not receive any tax paperwork from the online casino, they do not to declare any of their winnings. Unfortunately, we are liable for our own paperwork and if the online casino did not provide you with a W-2G form, it does not mean that you can ignore the fact that you need to pay tax anyway.
