Do you have to pay tax on bitcoin gambling winnings?

Discussion in 'General Bitcoin Gambling Discussion' started by 2damoon, Jun 16, 2016.

  1. moneyDay

    moneyDay Guest

    Yeah, useful info, thank you from 2020:)
  2. Gooch

    Gooch Member

    I'm not sure about other countries but in the United States at least, gambling winnings are generally subject to federal and state income taxes. This includes winnings from cryptocurrency and stablecoin casinos, sports betting, lotteries, and other forms of gambling. The Internal Revenue Service (IRS) requires that all gambling winnings be reported on your tax return, regardless of whether the winnings were received in cash or other forms such as cryptocurrency or prizes.

    The amount of tax you owe on gambling winnings will depend on a number of things, including the amount of the winnings and the taxpayer's tax bracket. In general, gambling winnings are considered taxable income and are subject to federal income tax at the taxpayer's ordinary income tax rate. Additionally, some states also impose state income tax on gambling winnings.

    If you generate a lot of income from gambling, my advice would be to keep accurate records of your gambling winnings and losses, including the date, location, and amount of each gambling activity. This information will be needed when preparing your tax return and may also be requested by the IRS if you are audited.

    I'm not an accountant so I would recommend that you work with a tax professional or accountant if you have questions about how to report your gambling winnings and any associated tax obligations.

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