IRS tax on slot pull winnings?

[chengkp75]

19 minutes ago, BruceMuzz said:

f they get wind that a foreign flag ship that does not call at US Ports is flagrantly violating USPH Standards, they threaten to retaliate against any sister ships that do call at US Ports. This is very hush-hush,and very effective.

Why would they care?  This doesn't pass the smell test for me.  The USPH/CDC are only tasked with controlling the introduction of disease into the US, so why would they care, or spend their budget, worrying about a ship that doesn't come to the US?

[ldubs]

We moved from taxes on casino winnings to public health bullies.  Gotta love cruise critic!  😀

 

Anyway, answers are all over the place.  Maybe it depends more on individual cruise line policy than anything else.  

 

I'm still not understanding how someone from another country with income from outside the US would need to report that income on a 1040.    

[chengkp75]

18 minutes ago, ldubs said:

I'm still not understanding how someone from another country with income from outside the US would need to report that income on a 1040.

That would be like all the foreign crew on the ship having to report their income to the IRS.  Just ain't gonna happen.

[Zach1213]

Damn we better figure these earth laws out soon, it's only 40 years until Zefram Cochrane invents the warp drive and then we have a whole universe of legal issues. 

[Aquahound]

Jurisdiction over US persons on the high seas is derived from the US’s Special Maritime and Territorial Jurisdiction, and only applies to certain circumstances. Only certain entities can exercise that jurisdiction. FBI and Coast Guard are the only 2 that come to my mind. Certainly not Navy. 

[chengkp75]

From RCI's FAQ section, winnings for a non-US citizen or resident alien, will only be reported to the IRS, if the winnings happen within US territorial waters.  US citizens or Resident Aliens will have all winnings reported to IRS, regardless of where it happened.

Edited April 18, 2023 by chengkp75

[Elaine5715]

2 hours ago, chengkp75 said:

From RCI's FAQ section, winnings for a non-US citizen or resident alien, will only be reported to the IRS, if the winnings happen within US territorial waters.  US citizens or Resident Aliens will have all winnings reported to IRS, regardless of where it happened.

Land casinos in the US will withhold taxes for non US citizens unless they have a special type of number in advance but even when withheld by land casino, the winners just need to follow their government steps to be refunded. US Citizens can ask that US land withhold taxes for them.

Carnival does report winnings for US citizens as required but they do not withhold any taxes.  You are on your own to pay them. I don't see them withholding taxes for non citizens who aren't required to pay them at all.  

[Aquahound]

So, in an effort to hopefully bring closure to the original question, I contacted some of my sources.  One is an IRS agent and the other works for a cruise line here in Seattle.  

 

The short answer is no.  Canadians and other non-U.S. persons should not be paying U.S. income taxes on cruise ship casino winnings.  U.S. persons should be handed the tax form in order to report their winnings because regardless of where they won, it is still income. 

 

A ship should not be withholding the money themselves.  If a ship is doing that, it would only be an internal policy (a very odd internal policy), not a legal mandate.  My cruise line contact said he has never heard of a ship doing this but said he wouldn't be surprised.  Cruise ships misinterpret U.S. laws all the time.  The ship is foreign flagged and operating the casino outside of U.S. waters, so there is no requirement for them to withhold income taxes in the manner an employer would in the U.S.  

Edited April 18, 2023 by Aquahound