Posts Tagged ‘taxes’

Question by Nicolas: How do taxes work for online poker tournaments?
I am an online poker player and I have made a good amount of money online or at least I’d like to think so… I am a little worried about taxes.

I only play poker tournaments, absolutely no cash games. Would taxes apply to the amounts I cash out and the amounts I deposit?
I make at least 5-10 deposits and 5-10 cashouts per month. When I mean cashout, I mean asking a check from the poker website.
I forgot to mention that I live in California (United States)
Example: I deposit $ 150… Lose that. Deposit $ 150 again. I get to $ 600 and Cashout. Deposit $ 150 again. etc….

At the end of the month I have $ 2000 in cashouts and $ 1000 in deposits. Are the cashouts my wins and what I’m supposed to tax?

Best answer:

Answer by Dan H
“There are several cases in law that would suggest that betting and gaming (and poker, as a game of skill) are tax free occupations.”

I think it is tax-free in the UK, but not in the States.

Edit: In that case it seems to be more complicated.

http://www.onlinepokerfaq.com/guide/us-taxes.html

http://answers.yahoo.com/question/index?qid=20071217133348AAPgx2X

Sorry I don’t have time do more than send you the links.

What do you think? Answer below!

Question by mkelly13207: If you win a large sum of money playing online poker, do you have to pay taxes on your winnings?
A friend I know plays a lot of online poker and he is afraid that if he were to win a lot of money and did not pay taxes on it that he would be subject to the american penal system.

Best answer:

Answer by Rich Z
Luckily most people who win big online never get paid so he really has nothing to worry about.

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Question by Rickls: I just lost a hundred bucks at online poker, can I write that off on my taxes???
I just lost a hundred bucks at online poker, can I write that off on my taxes??? Or any other gambling expense??

Best answer:

Answer by Tushar
Hahah.. Unlucky.. =( Unfortunately not.

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Question by t3tsuo: Online poker & Taxes: Do I have to report winnings if I did not cash out?
I started playing poker online in 2008 and won a few bucks. I never transferred the money to my bank account because I want to keep growing my bankroll.

Still, do I have to report my winnings on my tax return?

Best answer:

Answer by v b
Every year.

Even though it’s illegal income, the IRS will still want it’s cut.

By the way, in the unlikely event the account has $ 10K or more in it, you must file a TDF 90-22.1 form. Fines are steep on that one.

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Question by Sweeb: How much taxes do you owe on Online Poker winnings?
I live in Pennsylvania. How much money would I have to win in online poker for it to warrant claiming it on my Tax Return, and how much would I owe for state and federal taxes (percentage)?

Best answer:

Answer by LegFuJohnson
It’s income, so the tax percentage depends on your overall income level. If you are in a 20% bracket, you’ll pay 20%. If you are in a 10% bracket, you’ll pay 10%.

You are supposed to declare anything you win. Whether you do or not is up to you.

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Question by Matthew G: How much money in taxes do you pay for playing online poker?
If you play online poker regularly, and say you’ve earned a hypothetical ,000 in one year. How much in taxes would you pay? Would there be any exceptions or special circumstances?

Best answer:

Answer by LegFuJohnson
Depends on the country.

Then it depends on your income. (And of course, if you declare it).

If you make 20K a year, then you’d add the 5K and pay taxes on 25K. If you make 100K a year, then you’d declare 105K and pay taxes. You’d pay a higher rate of taxes if you made 105K..

It’s income tax, not a gambling tax.

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Question by beatzscientifik: How do taxes work for winnings from online poker/gambling sites based outside the US?
If you win ,000+ from an online poker/gambling site based outside the US, is there any way to cash out the money without having to pay taxes? If not, can someone explain how taxes would work?

Best answer:

Answer by snwbrder0721
You may want to contact a tax specialist or CPA, but my understanding is that since online gambling is illegal your only option for taxes is to report it under “other income earned” on a tax form. It’s like a catch 22 since it’s illegal earnings, but yet the government also wants to tax those illegal earnings. I’ve heard advice of getting an account with an offshore bank and taking out cash from an ATM so that it’s not as tracable if you were audited. You might lose a % with fees and such, but your best bet may be to keep it in cash so there aren’t as many paper trails to follow. If you do end up paying taxes on it you would pay in the high bracket like a lottery winner, upwards of 35% I believe.

My advice, if you’re really making that kind of money you’re either good or lucky. In either case look into a trip to Vegas and keep everything legal so you can enjoy your winnings to the fullest without worrying about the FBI knocking down your door.

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