Chumba Casino General
LV native and table games whizz
Chumba Casino General
LV native and table games whizz
Although Chumba Casino is primarily a ‘Freeplay’ casino site, where you’ll play with virtual Gold Coins, if you enter sweepstake contests, then you can redeem real money prizes. So, you’ll want to know if Chumba Casino taxes have to be paid on your earnings.
Unfortunately, if you’re lucky enough to land a big win, then Chumba taxes will be applied before you can redeem the funds. In this short guide, we’re going to go through how that works and tell you what to expect.
Chumba Casino is pretty much like any other online casino in that it offers you the chance to play a variety of slot games and casino table games. But the big difference is that Chumba is a social casino.
You might want to read our Chumba Casino review if you’d like a full explanation of exactly how Chumba operates, but for now, it means you get to play great slots and casino table games for free using a virtual currency called Gold Coins.
Chumba Casino coins are deemed to have no monetary value within the laws of 50 US states, meaning that the Chumba Casino is much more widely available to US citizens than any real money casino would be.
Playing with virtual currency doesn’t mean that you won’t get similar benefits to those found at real money online casinos either. In true keeping with the casino ethos, there is a Chumba Casino promo code available when you sign up, which entitles you to 2,000,000 Gold Coins to play on any games of your choice as a welcome to the site.
For those of you who opt to sign up via the newly-launched Chumba Casino app, which is available for specified iOS and Android devices, you will get an extra 1,000,000 Gold Coins as a thank you. But don’t worry if your device doesn’t meet the specs, you can still play via any HTML5 compatible web browser instead.
There is just one small downside here: the app currently available, which is called Chumba Casino Lite, does not have all of the same features as the main website. Regrettably, that means that there are some Chumba Casino cheat codes you can’t use and not all of the slot titles are available for app users either. That said, Chumba is intending to upgrade it further in the near future.
The bad news is that all gaming profits are fully taxable in every US state. As with winnings from sports betting sites and casinos, any winnings from lotteries, sweepstakes and even game shows are taxable as well. For you, that means Chumba Casino taxes will have to be paid if you come out on top.
The Internal Revenue Service (IRS) always makes sure that it can collect its dues. All gaming sites are required to report prize earnings over a certain amount. For wins on sweepstakes, it’s $5,000 and the tax applicable is 24%. US laws state that any tax liability must be deducted at source, meaning that Chumba Casino taxes the amount you redeem in cash.
When you complete your personal tax assessment for the year, you must report the total of your gaming earnings for that period, in addition to any other income from employment using IRS Form 1040.2. In the section titled ‘Other Income’ you’ll get the chance to show the exact details of your Chumba prize and the tax you have already paid.
Personal tax in the US is calculated on a sliding scale and there are currently seven tax brackets. Depending on where you land on the scale, you may have to pay additional tax on your earnings, or you might even be reimbursed.
When you first sign up with the Chumba Casino, you’ll be asked to confirm that you have read the terms and conditions. Within those T&Cs is a clause which advises you that Chumba Casino taxes will be applied to any prizes which exceed the maximum amount prescribed by the IRS.
As we mentioned earlier, 24% of any prize over $5000 must be deducted by Chumba by law. That will happen automatically; you won’t have to complete a Chumba Casino tax form or anything like that.
However, it’s worth noting that you will not be permitted to redeem any cash prizes until such time as Chumba has initiated the correct taxation processes. So, for big rewards, you are likely to wait a little longer for a prize redemption to reach your account.
We are big fans of the Chumba Casino and the opportunities it offers to those of you who live in US states where it’s not legally permitted to play at real money online casinos. As with the majority of online casinos, you can claim the new sign-up offer, which is a Chumba Casino slots sign up bonus, and there are plenty of ongoing promos to get involved with.
We think that the opportunity to enter sweepstakes contests legally, with the potential to redeem big prizes, is one that you shouldn’t miss out on. The fun you’ll have on this site far outweighs the downside of having to pay Chumba Casino taxes on your earnings, so go for it!
The IRS is very specific about the taxation of all gaming profits. To find out how much tax you can expect to pay and how that is handled by Chumba, please head over and read our Chumba Casino taxes guide.
The Chumba Casino is much like any other online casino except that you will play games using virtual currency. To find out exactly what Chumba has to offer you and why it’s a great idea to sign up, head over and read our Chumba Casino review.
The Chumba Casino is available to players in most US states. Why not check out our in-depth Chumba Casino review where you’ll find all of the information you’ll need about this innovative online casino?
|Company||VGW Games Limited|
|Headquarter||5-7 Matilda Court, Giuseppe Cali' Street, Ta' Xbiex, XBX 1423 Malta|
|Year of Founding||2016|
|Customer Support||Phone, Email Support|
|Licence||MGA - Malta Gaming Authority|