Now OP, Whether on a weekend in Vegas or watching a football game with our buddies, most of us have won or lost a little money gambling. But did you know that you must report gambling wins and losses to the Internal Revenue Service? With cryptocurrency-based gambling quickly increasing in popularity, Bitcoin users must be aware of the tax liability imposed on their winnings.
Just like the mafia of old Vegas, the IRS wants its cut after the fun and games are over. Anyone who wins money gambling or wagering must pay taxes. This includes not only typical card games, sports books, and casinos, but also racetrack bets, gameshow winnings, lotteries, and even Bingo.
Gamblers should be aware of the tax rules that apply to gambling income. Regardless if winnings are paid out in prizes, traditional cash, or cryptocurrency, winning bets create taxable income. I. Casinos and gaming sites may withhold these taxes for you. In these cases, they provide gamblers with a Form W-2G, which they use to report how much they won and how much tax was withheld. However, even if you dont get a Form W-2G, you are responsible for reporting all gambling winnings to the IRS.In order to be sure of which tax rules affect your gambling income, be sure to consult with a qualified tax professional.
Its critical to keep your records in proper order in case the IRS audits your tax return. The government expects all of us to keep detailed financial records, including gambling wins and losses. So, anyone who gambles using cryptocurrency or traditional money should keep all related receipts, tickets, payment slips, statements, and key tax forms like Form W-2G and Form 5754.
If you plan to deduct gambling losses, you must be able to prove your winnings and your losses. The IRS suggests that you do so using a gambling log or diary, but often online gaming sites like example here Betchain, 7bitcasino , Fortune jack and even my favorite VegasCasino.io provide a detailed history of your activity that can be used for this purpose.
Online gambling using Bitcoin and other cryptocurrencies has increased in popularity over the past few years. In fact, online gaming was one of the first mainstream uses of virtual currencies. As a result, many cryptocurrency users may have tax liability on their gambling winnings and not even know it. If you gamble, you must report your wins and losses on your tax return or else IRS will be knocking on your door very soon .