Tax on WSOP winnings

chaff822

I am fully aware that it is extremely unlikely that this problem will ever effect me, however it is something worthy of consideration even for those just dreaming of cashing in the WSOP. How much tax would an English citizen pay on their winnings in this event? I have scouted the web and received ambiguous information. Some suggest that for the English there would be no tax on winnings as that is our domestic law, whereas some say it is 25% and others 40%. Has anybody on here cashed in the WSOP ? Or know someone who has and can definitively answer this?

Thanks in advance

beaneh

I haven't had the pleasure to find this out myself, but yes you get screwed by the US government for all they can if you try and take money out of their economy. They are a massive bunch of ska nks.

dantb10

When i cahsed last year i just had to fill loads of forms out and i didnt get taxed anything. Dont ask me how it all works tho!!

ACESOVER8s

Dantb already has a WSOP cash so i expect he would be able to answer as a fact but i don't see why an English resident would pay tax on any money they win in America. As you would pay income tax in your country of residence, and as in this country the game does not constitute an earning but merely a "Gambling Win" i would hope that the money would not be taxable (unless the casino take the tax at point of payment)

**** Edit**** dan managed to answer prior to me posting but it wasn't there when i started lol

beaneh

In Response to Re: Tax on WSOP winnings:

Dantb already has a WSOP cash so i expect he would be able to answer as a fact but i don't see why an English resident would pay tax on any money they win in America. As you would pay income tax in your country of residence, and as in this country the game does not constitute an earning but merely a "Gambling Win" i would hope that the money would not be taxable (unless the casino take the tax at point of payment) **** Edit**** dan managed to answer prior to me posting but it wasn't there when i started lol
Posted by ACESOVER8s

I'm very sure they do take some from any decent cashes, i'm pretty sure i've read this on other forums.

hmm maybe it's changed...

"Foreign Residents of U.S. Tax Treaty Countries: Must provide an Individual Tax Identification Number to avoid 30% tax withholding.

The following countries currently have a tax treaty specific for gaming winnings:

Austria, Czech Republic, Denmark, Finland, France, Germany, Hungry, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, Russian Federation, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine and the United Kingdom.

dantb10

Yeah i got an identification number thingy so it meant i didnt have to pay

offshoot

we are lucky enough to live in one of the few countries where gambling winnings are not taxed and because of that treaty^^ we dont have to pay on wsop winnings either. I kinda hope the US doesnt legalise online poker because it might give our government their own ideas.

Im not really averse to being taxed, just they never come up with a system which is fair. The ones in europe are particularly ridiculous where they tax you everytime you win but you cant deduct losses from that.

beaneh

In Response to Re: Tax on WSOP winnings:

we are lucky enough to live in one of the few countries where gambling winnings are not taxed and because of that treaty^^ we dont have to pay on wsop winnings either. I kinda hope the US doesnt legalise online poker because it might give our government their own ideas. Im not really averse to being taxed, just they never come up with a system which is fair. The ones in europe are particularly ridiculous where they tax you everytime you win but you cant deduct losses from that.
Posted by offshoot

Taxing gambling is retar ded.

Durr must be loving it, win 7million, pay taxes of like 1.5-2mill. first week of new year -5million downswong and the government remind you that if you win anything you gotta be taxed on it. Such a joke. Not a fan of the swedish system either. UK ftw.

Tikay10

As a British Citizen, you do not have to pay any tax on poker winnings in Vegas....AS LONG AS......

....you sort yourself out an "ITN", which any Cardroom in Vegas will organise for you.

Ideally, organise the ITN in ADVANCE of any "anticipated" (!), big win, it's easier that way.

And finally, if you do cash BIG, & then ask the Cardroom/Venue to sort it out for you retrospectively, they WILL TRY TO LIFT YOUR LEG. For several years, The Rio had a "tax Consultant" resident in the Cardrooms at WSOP Time, who promised "to sort everything out for you Sir". And they did, they were very good. But they charged 10% of your winnings......to fll in a form that any Vegas Cardroom will do free of charge, & in fact you can do yourself in a few moments. 

Right, that's th tax sorterd, now go win the money.....

PS - You playing the Viva Las Vegas Satellites on here Mr Chaff?

wartic

Im actually very happy for the govt to tax all my winnings from poker, horses, rugby, football and the occasional skyvegas £5 special as long as they dont tax my wages. Is that the faint faint chords of Jerusalem i hear in the background (and im a scot) as im prepered to pay tax on my vast gambling winnings and they can even have 50%. Where do i get my tax rebate cause there is no winning only differing degrees of loses

chaff822

I had never even considered the thought of paying taxes on gambling winnings as I wasn't old enough to be gambling when we taxed people in England. I read an article about a scandinavian guy who, after winning nigh on 9 million, only received just over 2 million dollars as the majority of his winnings was hit at a rate of 75%. Gambling would be a far less attractive proposition if tax was brought into this country, especially considering it isn't even tax on overall profit, just winnings. Basically, in America you either lose and lose all your entrance fee or win and pay a massive amount in tax - how can anyone be profitable?

Now you have cleared that up Tikay, I am certainly far more inclined to participate. The whole idea seemed far less appealing when I thought I would have had to pay 30-40% of any winnings in the unlikely event I made it to Vegas and cashed. I will probably enter but I cannot afford to jump too far forward, the 13 pound level is where I shall have to start my journey.

BelovedLtd

In Response to Re: Tax on WSOP winnings:

As a British Citizen, you do not have to pay any tax on poker winnings in Vegas....AS LONG AS...... ....you sort yourself out an "ITN", which any Cardroom in Vegas will organise for you. Ideally, organise the ITN in ADVANCE of any "anticipated" (!), big win, it's easier that way. And finally, if you do cash BIG, & then ask the Cardroom/Venue to sort it out for you retrospectively, ...
Posted by Tikay10

I think people have covered the not getting taxed - but just a point

it's possible, but I'm led to believe that it's very hard to get an ITIN before you actually need it

But in terms of the actual question of the WSOP, as already mentioned - they'll guide you through the papers and sort it out so you can take home your cash (and the time it takes to fill in all the forms in triplicate is all made worth it when they give you the cash)

You get the actual ITIN number posted some months later - then you can save that on a mobile for example - ready for the next time you get there and cash again

NoseyBonk

Search me! Search me! Oh wait, that's Customs & Excise