Taxes on WSOP-cashes
 

Hey,

Im currently living outside the US, but going to play the WSOP Main Event. I know I can play the event as a foreign (because of dual citicenship), submit an ITIN number and then only pay taxes in my country of residence (which is the standard procedure for non-US players). But I was wondering how high the taxes are in the US on money won this way? And IF they are lower than in my home country, I would like to be able to just play the event as an American with no connection to my country of residence...? Is that possible? I dont wanna do anything illigal, im just very unsure of how the situation is.

Re: Taxes on WSOP-cashes
 

If you are a resident in Denmark as you 'loc' suggest your winnings from an event in the US will be taxable with income tax in Denmark. If you pay an american tax then you can deduct the amount paid in tax in US before calculating the tax in Denmark.

So if you win $50.000, pay $5.000 in US tax the $45.000 will be taxable with income tax in Denmark.

Only winnings from an event in the EU where the company sporting the event pays tax for the event to a country in the EU are not taxable in Denmark.

Re: Taxes on WSOP-cashes
 

Ok thx.

Another question, is it illigal for me to play the event as an American, cash in it, and then just never bring the money into my country and just deposit it in a Swiss bank account or whatever...? And if I do this, what is the % i have to pay in the US of the winnings?

Re: Taxes on WSOP-cashes
 

Why worry about it? Highly unlikely you will win anyway, right?

Re: Taxes on WSOP-cashes
 

[ QUOTE ]
Why worry about it? Highly unlikely you will win anyway, right?

[/ QUOTE ]

I would hate to get arrogant here like so many other posters... [img]/images/graemlins/wink.gif[/img] So instead i will use this comment for a BUMP [img]/images/graemlins/smile.gif[/img]

Re: Taxes on WSOP-cashes
 

[ QUOTE ]
Ok thx.

Another question, is it illigal for me to play the event as an American, cash in it, and then just never bring the money into my country and just deposit it in a Swiss bank account or whatever...? And if I do this, what is the % i have to pay in the US of the winnings?

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I don't know how high the american taxes are, but any money that you'll earn while living in Denmark is taxable in Denmark. The only way to get around this is to move to the US, live there for a sufficient while (ie something like a full year) so that you are not paying taxes in Denmark while you win your big prize. After that then you can freely take your money into Denmark without paying taxes.

The method you suggest is still tax evasion as long as you are a danish tax payer in the year that you win a tournament prize.

I better not comment on how high the risk is, that you are caught [img]/images/graemlins/smile.gif[/img]

Re: Taxes on WSOP-cashes
 

UK players (non US citizens) can just fill the form in and get the lot tax free :-)

Re: Taxes on WSOP-cashes
 

[ QUOTE ]
Ok thx.

Another question, is it illigal for me to play the event as an American, cash in it, and then just never bring the money into my country and just deposit it in a Swiss bank account or whatever...? And if I do this, what is the % i have to pay in the US of the winnings?

[/ QUOTE ]

Try asking your country's tax people. If you win it will be public knowledge so you can't evade their attention anyways so better ask them. It is highly unlikely anyone on this forum knows how laws in your country are.

Re: Taxes on WSOP-cashes
 

[ QUOTE ]
Try asking your country's tax people. If you win it will be public knowledge so you can't evade their attention anyways so better ask them. It is highly unlikely anyone on this forum knows how laws in your country are.

[/ QUOTE ]

Not that unlikely [img]/images/graemlins/laugh.gif[/img] going by his location, I live in the same country, and I do have quite a bit of knowledge of the local tax laws. But your advice is very good [img]/images/graemlins/wink.gif[/img]