If you are looking to win progressive jackpots in online gambling casinos, it is prudent to also understand the tax implications of your winnings. Many online gamblers have the misconception that they don’t have to pay taxes on their winnings due to the following reasons.
Online gambling sites are located overseas
According to the US tax code, all income, whether earned in the US, online or overseas, is taxable. Therefore, even if the online casinos are located in some other country, you still have to pay taxes on your winnings.
Online gambling is illegal
It does not matter if you earn money legally or illegally. As long as you are making a profit, you owe taxes to the government. Think back to Al Capone. He went to prison for tax evasion and not for his illegal deeds. That should tell you how important it is to pay taxes on your progressive jackpot wins.
Online gambling winnings have to be repatriated to pay taxes
This belief is a myth. If you enjoy playing for progressive jackpots and end up a winner, you have to declare it as other income and pay taxes on it regardless of where the money is kept.
You should be aware that you need to pay both federal and state income tax. However, if you live in a state where there is no income tax, you only pay federal income tax. As an online gambler, it is best to consult a qualified CPA, who will let you know how much of your winnings are taxable and what deductions you can take, if any.
The thrill of winning at progressive jackpots is indescribable. Once you have sorted out the tax conundrum, you can focus on enjoying yourself. Finding the best online casinos for progressive jackpots is not as difficult as you think. Just get onto Big Jackpots, and access reliable and reputable online casinos that offer exciting online progressive jackpot games.