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• Gambling Tax In Nj New Jersey
• Online Gambling Tax New Jersey
• Nj Casino Revenue Report
• Gambling Tax In Nj County
• New York State Gambling Tax

Answer 1 of 16: Last night doing my taxes - had a number of W2s from 2009 for gambling wins easily offset by losses. However for the 1st time the tax preparer's program asked him why we weren't filing a NJ return due to those winnings. For many of us, gambling means buying the occasional lottery ticket on the way home from work, but the Internal Revenue Service says that casual gambling also includes raffles, casino games, poker, sports betting—and, yes, even fantasy football. When you win, your winnings are taxable income, subject to its own tax. As a result, bet winnings are now subject to the New Jersey Gross Income Tax. NJ Sports betting taxes apply to all institutions and all bet winnings are taxable and need to be reported. Failure to report winnings can result in hefty fines and interest. It is also a surefire way to elicit an audit.

It’s everyone’s favorite time of the year again – tax time!

In case you missed our four part series on understanding tax liabilities associated with playing online poker or otherwise gambling via the Internet in the state of New Jersey, below is a brief summary of each installment.

The series was written by Brad Polizzano, a New York-based tax attorney and accountant.

Part I: Introduction

The first part of the New Jersey online gambling tax guide is an introduction.

This segment deals with understanding when federal tax is owed, what constitutes a gambling session, how to track winnings and losses, distinguishing amateur play from professional play, and more.

Part II: New Jersey Residents

Part two of our Garden State tax guide is specifically focused on residents of New Jersey.

Learn the difference between recording gambling earnings and losses for New Jersey state tax filings as opposed to a federal return, find out what constitutes a New Jersey resident, and more.

Part III: Residents of Other States

The third article in the series centers on residents of other states who play at New Jersey’s online casinos and poker rooms.

Players who record winnings may be subject to taxes in New Jersey as well as in the player’s home state.

This part also addresses tax implications for players from the nearby states of New York, Pennsylvania, Connecticut, Maryland, and Delaware.

Gambling Tax In Nj New Jersey

Part IV: International Players

The fourth and final installment of the New Jersey online gambling tax guide series is geared toward players who are not residents of the United States.

Even non-U.S. residents are subject to taxation on gambling winnings.

This article explains the different tax circumstances facing amateur players and professional players from outside the United States, and also addresses tax situations encountered by players from treaty countries.

Gambling In America

Online Gambling Tax New Jersey

If you've ever won a jackpot in Las Vegas, you probably know that your excitement diminishes at least a little when the casino throws a W-2G tax form in your face. In fact, if you don’t provide your social security number, the casino will automatically withhold up to 30% of your winnings. The same goes for lottery and horse racing wins above $1200. Yet when playing online, paying taxes isn’t always so black and white.

Americans who play at US-based online casinos will usually have to deal with withholding taxes just like in Las Vegas. Yet that only represents a small fraction of your entertainment options. When playing at licensed offshore online casinos or poker rooms, American players usually won’t hear the words taxes mentioned at all.

Sadly, it is never safe to assume that your winnings are ultimately tax-free. It is true that Americans who play at internet gambling sites outside of the USA won’t be subject to withholding taxes when withdrawing their winnings. Yet you may be required to report these gains when you file your taxes in April. The greatest determinant is the number, size, and frequency of your wins. The actual threshold varies from state to state and whether or not you are an amateur or professional. For more information on reportable gambling winnings visit the IRS guide: https://www.irs.gov/instructions/iw2g/ar02.html

Professional Gamblers

Whether or not you qualify as a professional gambler doesn’t solely depend on your performance at the tables. The main litmus test is the expectation and probability of profit in the eyes of the Internal Revenue Service. Your success and whether or not you have a regular job on top of gambling may also be factors.

With even amateur gamblers having to deal with taxes, professional gambling does have benefits. You can actually deduct your wins from your losses when your treat your gameplay as a business. No matter what your current status is and how often you play, it's best to keep tabs on your performance to develop strategies, stick to a budget, and simply know where you stand. You can find this tip sheet courtesy of the IRS: https://www.irs.gov/taxtopics/tc419.html

Whether or not the IRS can actually track your winnings is another matter entirely. Yet you should be aware of your obligations. With a huge budget deficit and ballooning debt, the federal government is looking to fill their financial holes any way they can. Between the NSA and modern forensic accounting practices, covering your digital tracks is more difficult than it used to be.

Tax Obligations Outside Of The USA

The United States is a bit of an outlier when it comes to taxing gambling winnings. In the United Kingdom, the government taxes the gross profits of casino operators rather than players. Canadians can play the lottery, live casinos, poker and online games without paying taxes unless they are a professional. Likewise, Australians and New Zealanders can also gamble tax-free. To put things in perspective, Americans do pay some of the lowest personal income taxes in the first world. Things tend to even out in the end.

Like anything else, interpreting the rules is always a matter of debate. Here's an interesting tax perspective for Canadians: http://business.financialpost.com/personal-finance/tax-expert-a-gamble-over-poker-winnings

Things To Consider

Nj Casino Revenue Report

Keep in mind that Americans have to deal with both Federal and State taxes on most forms of income. Always keep basic records no matter how often you play or win. This will make things easier during tax season.

Gambling Tax In Nj County

Accountants Have The Answers

New York State Gambling Tax

No matter where you live, it's always best to discuss your personal situation with a licensed tax professional in your area. You can usually get a short consultation for free with complete confidentiality. It's the best way to play by the rules while minimizing your tax burden.