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Thread: taxes in vegas & visa

  1. #1
    bots's Avatar
    bots is offline PNW Lurker
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    Default taxes in vegas & visa

    Hi all,

    Hoping someone could assist me.

    I am heading to vegas for the world series, just wondering I am under the impression that you have to pay taxes on winnings in vegas, so how much are the taxes & how does it work?

    Also as an Australian do you need a Visa to travel to the US? Never been to US

    Thanks in advance

  2. #2
    danx is offline PNW Lurker
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    Default Re: taxes in vegas & visa

    to travel to USA, u need to register with ESTA. its like a visa i guess..
    last time i went, i forgot about it and had to do it on my laptop at check in. only takes about 10 mins or so. if i remember correctly, it gives u a reference number and u use that when checking in with passport.

    as for taxes, im pretty sure its 30% on winnings over $5000, after tourney entry fees.

    if u play a $1500 tourney, u only pay tax if u cash out $6500.

    i may be wrong, so feel free to correct me.

  3. #3
    JK.
    JK. is offline PNW Elite
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    Default Re: taxes in vegas & visa

    I have been to USA several times.Never needed a viza.
    But don't take information third hand.
    Go to a travel agent and ask.
    About taxes and viza,call the American or Australian Embassy for any information.They are great help.
    John Kocbek.

  4. #4
    bots's Avatar
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    Default Re: taxes in vegas & visa

    Quote Originally Posted by danx View Post
    to travel to USA, u need to register with ESTA. its like a visa i guess..
    last time i went, i forgot about it and had to do it on my laptop at check in. only takes about 10 mins or so. if i remember correctly, it gives u a reference number and u use that when checking in with passport.

    as for taxes, im pretty sure its 30% on winnings over $5000, after tourney entry fees.

    if u play a $1500 tourney, u only pay tax if u cash out $6500.

    i may be wrong, so feel free to correct me.
    thanks mate

  5. #5
    FSL009 is offline PNW Grinder
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    Default Re: taxes in vegas & visa

    Most of the casino's on the strip have a sign at the buy in cage about it and i think they will give you some details if you ask.

    but the 5K sounds right (although i have not looked it up in a while) the 30% is correct and its on winnings so not the return of your own money.

    so that sounds right as well.

    Unfortunately Australia's DTA with the USA doesnt restrict the USA levying withholding tax on gambling winnings of Australian tax residents.

    Have fun, and only worry about the tax if you win.
    Kd FTW

  6. #6
    SwoopAE is offline PNW Semi-Pro
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    Default Re: taxes in vegas & visa

    5k profit is tax free

    anything over is 30% withholding unless you have a passport from a tax treaty country

  7. #7
    SwoopAE is offline PNW Semi-Pro
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    Default Re: taxes in vegas & visa

    also keep receipts of tournaments you dont cash in they're deductable from profits over 5k if you make profit from the trip im pretty sure although i dont know how that works exactly as I play on a no-tax-withholding passport in the US

  8. #8
    luckyshades is offline PNW Elite
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    Default Re: taxes in vegas & visa

    Quote Originally Posted by SwoopAE View Post
    5k profit is tax free

    anything over is 30% withholding unless you have a passport AND LIVE IN a tax treaty country
    FYP.

    No point showing them your passport from a tax exempt country if you list an Australian address.

  9. #9
    Monkey is offline PNW Railbird
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    Default Re: taxes in vegas & visa

    Whenever this is brought up, someone always says "keep the receipts becaues its deductable" etc but never elaborate

    So if I went to the WSOP and played 5 tournaments for a total buyin of $5000.00 (1k each)

    I cashed in one tournament only, for 21k and was taxed 6k for a total of $14k profit

    So overall, I ended the trip with 10k profit (leaving the US with 15k in cash) and payed 6k in taxes, with 5k in tournament buyins

    How much, and how do I claim back? Is it a lengthy drawn out process for a measly $200? Can it be done from Australia? Is it difficult? Will I need an accoutant creating extra fees etc?

    Would appreciate help
    Last edited by Monkey; 09-02-2012 at 12:36 AM.

  10. #10
    FSL009 is offline PNW Grinder
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    Default Re: taxes in vegas & visa

    also keep receipts of tournaments you dont cash in they're deductable from profits over 5k if you make profit from the trip im pretty sure although i dont know how that works exactly as I play on a no-tax-withholding passport in the US
    If your not a professional then you pay on gross - no deductions.

    if you are a professional then you pay on net winnings but you need to be able to show your a professional if the IRS ever want to see your records.

    So as i understand it (which is limited given I am not a tax person from the US and only deal with Aussie tax in my job) is that you pay on your net winnings in that tournament and can not deduct other losing tournaments. you can also not deduct losses from cash games etc. if you are a professional you can offset the losing tournaments against the winning ones.

    My suggestion is if you think your a professional then go to an accountant/tax advisor in Vegas who can set you straight with the actual position. Especially if you do bink one.

    Most of the decent sized firms are on there and there are a few guys that post around 2+2 and DC that are specialists in this field.
    Last edited by FSL009; 09-02-2012 at 09:23 AM.
    Kd FTW

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