online gamblining affiliate tax question

[keemosobby]

What is the name of your state? North Carolina

I am a CasinoBlasters affiliate. CasinoBlasters is an online casino gambling company based in Canada. I am a resident of the United States of America. I get paid 50% of the profits when a player that I refer loses money. Do I have to report any of my earnings to the IRS since 1. I am a US citizen and CasinoBlasters is a Canadian company or 2. The nature of the business is online gambling. Would either of these be reason enough not to have to report my earnings to the IRS?

Thanks much,
Darren

 

[abezon]

You have to report all income, regardless of source. You may also need to file a Canadian nonresident return -- see if the casino withholds any $$ for taxes. Also, does the casino report the income as gambling winnings or other income?

Are referrals a business or just a non-business activity that happens to result in a profit? If it's a business, you can take expenses (whatever you do to generate the referrals) & pay self employment taxes on the net profit. If it's non-business, you can't take expenses, but you don't have to pay self-employment taxes either.