land-based casinos) file a W-2G tax form with the U.S. tax law provides that all American citizens and permanent residents are subject to income tax on money earned (or in this case won) anywhere on the face of the earth, and you are required to report it on the “Other Income” line when you fill out the old 1040.īut the next question often heard is whether cruise ship casinos (like all U.S. Since cruise ships with casinos are all registered outside the United States - with their casinos only open when the ships are in international (or at least non-U.S.) waters - a frequent question is whether a slot jackpot or other big win on the high seas is subject to U.S. To ask a question on Tax Talk, go to the 'Ask the Experts' page, and select 'Taxes' as the topic.įollow us: on Twitter | Bankrate on Facebook Taxpayers should seek professional advice based on their particular circumstances. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. You can offset the cruise ship winnings with Louisiana casino, lottery ticket, pari-mutuel and similar gambling losses. Your gambling losses can come from any source as long as they were incurred in the same year.

Gambling losses are not reduced by 2 percent of adjusted gross income, or AGI, as are other miscellaneous deductions. The IRS has not released the 2009 Schedule A, so use the equivalent line when completing your returns for 2009. Gambling losses are deductible as miscellaneous itemized deductions on Schedule A Line 28. These taxes would be included with other withholding on Form 1040 Line 61. Depending on the type of wager, taxes may have been withheld. Gambling winnings are reported on Form 1040 Line 21. The IRS will certainly want to see your winnings on your 2009 Form 1040. The cruise ship most likely handed you a Form W-2G for gambling winnings and of course they will provide the IRS a copy. Neither Florida nor Texas impose individual income taxes, so your only partner in the winnings is Uncle Sam. Not only were you lucky on the high seas, you're also lucky there are no state income taxes involved. How do I report the winnings? Can I also use Louisiana losses toward this?

I won gambling money on a cruise ship in international waters they gave me a form for Florida.

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