The unsettled debate at the legality of playing at online casinos within the US is causing issues to arise for those wishing to fairly pay taxes, but additionally expecting fair treatment in return. Despite the dep. of Justice's stance that every one Internet gambling is illegal, no federal law prohibits gambling at online casinos.This leaves frequent players in confusion as to what's taxable and what's deductible. Consistent with an editorial within the Wall Street Journal, the IRS doesn't have a distinct policy for online gambling, lumping it in with all other wagering.
This means all winnings need to be declared, and losses can also be deducted, so long as they are often substantiated. While producing records to turn gaming losses for land-based casino clientele could also be problematic, online casino customers have ready access to deposit records.
But the Journal says some states, similar to California, are far less accommodating toward Internet gamblers. A spokesman for the California taxation department told Journal writers that taxpayers are accountable for proving a deduction comes from legal and bonafide sources.
This signifies that winnings are still taxed, but no credit given for losses, unless the state decides to simply accept the deduction. Unless state laws are explicit in denying online casinos legal status, as is right in six states, the federal confusion over online gambling legality will continue to permeate to many branches of government.
Published on November 22, 2009 by VirginiaMaddox
Read More... [Source: California Gambling News]
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