How to Gamble Tax Free

Gambling brings to mind images of Las Vegas, bright lights and the cheerful sound of coins dinging into the winning bucket. Nowadays, most people do not need to leave the comfort of their homes and instead use Internet gambling sites as sources of endless entertainment. Unfortunately, whether you're gambling at a casino or via an Internet site, there are few opportunities to gamble tax free.

Instructions

Difficulty: Challenging

Things You’ll Need:

• Close record of all wins and losses to report on tax returns
• Receipts and tickets saved from gambling interactions

Gamble With Care

1. Keep a close record of all of your gambling interactions, including both wins and losses. It is important to record all winnings from lotteries, casinos and even raffles when filling out your tax return forms to avoid charges of tax evasion.
2. Remember that it is possible to get money back from taxes on the amount lost gambling. If there are receipts or tickets to back up all of your gambling losses, they can be counted as deductions on your taxes, assuming you include itemized deductions on your tax return.
3. Cash in by gambling tax free as a senior citizen. Senior citizens can receive all gambling profits tax free. It is one of the only ways to gamble tax free in the United States, so use your seniority to avoid having to deduct additional money for taxes from your winnings.
4. Try your luck when overseas at websites like William Hill, which allows tax free gambling for a certain amount of time (see Resources below). However, if a United States resident logs onto this website from home and wins any money, he must claim those winnings on his taxes, even though it is technically a site located overseas.
5. Keep in mind that the United States is still unable to regulate or limit Internet gambling. Websites offer games from blackjack to poker, and these sites accept credit cards for gambling bets. The laws are subject to change, however, and should be followed by avid Internet gamblers to the letter.

Tips & Warnings

• Do not neglect to report all gambling winnings on your tax returns, no matter what type of gambling you participate in. If for some reason you are audited and unreported winnings are discovered, you will be charged with tax evasion.