Gambling winnings obtained by casual gamblers are fully taxable and must be reported as income on your tax return. Whether your success is in lotteries, casinos, horse racing, raffles or other bets, the cash winnings or value of prizes won must be declared.
It is the payers responsibility to issue you with a Form W-2G if your winnings are subject to federal income tax withholding or you receive certain gambling winnings. It is then your duty to report all winnings on your Form 1040 under line 21 (Other Income), in addition to all winnings that are not reported on the form you were given by the payer. You may be subject to pay estimated tax on additional income.
Any gambling losses can be deducted if you kept a record of where you have won and lost and use Form 1040, Schedule A to itemise them. Record keeping is a requirement if you wish to make a claim, so ensure you can provide evidence such as receipts, statements or tickets of both wins and losses. Loss deductions must not be higher in value than the amount of income made from gambling that you reported on your return. When claiming the losses, file them under 'Other Miscellaneous Deductions' as this is not subject to the 2% limit.
If, for income tax purpose, you are a nonresident alien wishing to file gambling winnings, Form 1040NR must be used. You are however, unable to deduct gambling losses.
Just like US Citizens and Green Card holders, US businesses must report and pay tax on their worldwide income. The individual filing requirements of each entity can be dependent on a number of factors. This article aims to break down the basics of the filing requirements for common types of foreign entities.
With the huge tax hikes introduced by the US over the last 5 years has brought more and more US citizens living abroad deciding to get rid of their American citizenship once and for all.
Can you renounce your US citizenship?
So you think you want to renounce your US citizenship? A person wishing to renounce his or her U.S. citizenship must voluntarily and with intent to relinquish U.S. citizenship:
If you missed the June 15th tax deadline there are a number of steps you can take to get back on track. We are expert on assisting US expats on all of their tax matters and concerns.
In order to get compliant with your US taxes, there are a number of steps you should take.
According to sources reported in The Telegraph, the Treasury is considering the dividend allowance in the Autumn Budge 2018, which will be released on the 22nd November 2018. It will be no shock to most if cuts are once again made against business owners, directors and shareholders hand. The same was done in the Autumn Budget 2017 when the dividend allowance was cut from £5,000 to £2,000.
As an accountant to film companies and professionals in the US we are expert in film industry tax exemptions and reliefs. One of the major tax reliefs available to film companies is the Film Production Tax Credit, which allows a tax credit of 30% on qualified costs incurred in New York State for eligible productions.
As the owner of an ecommerce business that works in the US, it is important to have an in-depth understanding of US corporate taxes. A growingly important and complex area of tax for ecommerce businesses in the US is Sales Tax.
As an American entrepreneur living abroad there are several tax considerations you should make before starting a business overseas.
Below we have put together a summary of the US tax implications of being a self employed US expat abroad
As an American Citizen living in Canada it is likely that you are obligated to file a US Expat tax return every year. There are a number of forms you may be obliged to depending on your residency status, level of income and source of income.
As a US citizen living and working outside of the US, it is often possible to exclude part- or even all of your foreign income and self-employment income from federal tax through the Foreign Earned Income Exclusion (FEIE).