Big Jackpot win in Intl waters?

Hello! I've read on some random posts that the ships are now making US citizens complete a tax form for large jackpots, even in Intl waters??? Can anyone confirm this?

 

 

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Hello! I've read on some random posts that the ships are now making US citizens complete a tax form for large jackpots, even in Intl waters??? Can anyone confirm this?

 

 

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Yes. See http://www.oceanplayersclub.com/vip-services/faqs.aspx

This is shocking

 

 

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This has always been the case on NCL. Reason given is that NCL's corporate offices are in Miami and therefore they follow U.S. tax laws. I suspect this is the case for RCCL, and Carnival, and any other cruise line with headquarters in the U.S.

 

But jackpots are so rare on cruise ship casinos that it's hardly a problem!

This is shocking

Not shocking at all! US law states that all earnings by US citizens no matter where earned are subject to US Income Tax. There are some exemptions, but gambling income is not one of them. Even less known is the fact that someone receiving Social Security type old age pensions from a foreign country is subject to a "double dipping" reduction (up to 40% IIRC) in their US Social Security pension payment! Uncle Sam has his hand in my pocket no matter what.

It does not matter if you fill out a form at the time of win or not. It does not matter the amount you win. ALL gambling winning are fully taxable as earned income for federal tax purposes doe US citizens. The form that is filled out is only and ADDITIONAL requirement for the entity awarding the prize and is required under certain circumstances (such as a win that is above a certain odds of winning, etc). However this form in no way affect the winners required reporting of the winnings. Specifically it is NOT what makes the winnings reportable at tax time.

IRS code reads that we citizens are liable to claim winnings in international waters. If a ship port in US, been for only one stop it is required to report winnings to the IRS.

 

 

 

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DH won $1500 slot payout on Carnival about 5 years ago and yes, they filled out forms to report to the IRS. Stinks!

What others have posted regarding claiming ANY gambling winnings is true. Regardless of receiving the w2g, IRS says you must claim.

 

W2g form: Royal does not issue them, although other lines do.

I won a little over 10k on the Emerald Princess last month, 4 separate jackpots, and they gave me W2 forms for my taxes. Of course you can claim losses up to the amount of your wins.

Everyone is talking about US citizens. How does it affect us Australians when cruising on US ships in International waters. Wiinings from lotteries, gambling etc are tax free for us unless you are a professional gambler.

Everyone is talking about US citizens. How does it affect us Australians when cruising on US ships in International waters. Wiinings from lotteries, gambling etc are tax free for us unless you are a professional gambler.

It depends whether you have a reciprocal tax treaty agreement with the US IRS on gambling income. I know the UK does and basically UK big winners don't have to pay the tax. there is a list of countries somewhere but i don't remember Australia being on it :confused: