If you win money at a casino on a cruise ship are you subject to taxes?

Question

If you win a large amount of money on a cruise line and you are paid in American currency,do you have to pay taxes on it? You are in the ocean and not on American soil but still its American currency. I went on a cruise 2 months ago and won $2500 at the slot machine on the boat.

Answer 1

Let me answer it this way, technically the income is taxable in your place of residency so not only will you pay Federal taxes but you will also be liable for state taxes. I have never won big on a cruise ship so I do not know exactly what they will do. My guess is they will not report it. If they do you will receive from them a form W-2G. If you don't receive one, it's really up to you whether you want to report it or run the risk of eventually getting caught. (Odds are extremely small that you will ever get caught) You will, however, technically be breaking US tax law. (statute of limitation is 3 years)

Answer 2

Richard Hatch won $1,000,000 while he was in another country.  He is now in jail in the United States because he did not pay taxes on the money he won.

Richard Hatch (born April 8, 1961) is the winner of the first American Survivor series, which aired in 2000 and was set in Borneo. He is currently incarcerated for tax evasion.

http://en.wikipedia.org/wiki/Richard_Hat...

My recommendation is, you better declare the winnings and pay your taxes on it.

Answer 3

I'm no expert, but it seems to me that if you're not in any country's jurisdiction, nobody can tax you. Just who do you think would have authority to tax you if you were on Jupiter?

Answer 4

if you had to give them ue information...like socoial security  #....they are going to tax you

Answer 5

As I frequent casino player, but rare winner of any big money, I do know that if/when you win more than $600. in a US casino they will take your SS #, have you sign a form, and issue to you a form 1099 along with your cash.  That 1099 is the report sent to the US IRS documenting your winnings (I had one just once ,,,LOL).  You should keep your copy and file information from it with your tax returns.

If they didn't issue you a 1099, man you are home free.  And if they did issue you a form 1099 we all know that you played that machine for hours and spend about  $1500 in that casino before you won, so your net winnings was only $1,000.  (Hint)

Answer 6

What touch said :-)

Answer 7

If you received a W2-G form when you won then you'll probably have to pay.  Most winnings over $1200 on slots is considered taxable as 'other income'  on your filings.  Even though you weren't on american soil, the IRS still looks at is as taxable income (i.e. same as if you were working in japan, you'd still pay partial taxes to the US).  If they don't have your info or players card, you're probably cool.