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View Full Version : Taxes in California for Pro Gambler

GoodTiMes
12-13-2005, 03:53 PM
This is my first year as a pro gambler and I was told that I was going to have to owe 44%, 9% state tax, 35% income tax.
I will have deductions but this will not account for much and if this is true I will be getting torn a new one.

Is it really this bad?!?
Guthrie
12-13-2005, 05:19 PM
Worse, actually. If you're filing as a pro, then you owe about 17-18% in social security and medicare taxes. And since it's California, you get to pay some other employment taxes. Depending on which city you're in, you may find they require you to get a business license and then they'll tax you some more. Unless you really, really, like living in California, or are making so much money you don't care about the taxes, move out.
ThaHero
12-13-2005, 11:58 PM
Wo is this for real? Best case scenario you keep 39% of your winnings? Thats absurd!
GoodTiMes
12-14-2005, 02:44 AM
Can I move out this year and save myself a quick 100k?
duk
12-14-2005, 01:35 PM
No one pays 35% in federal income tax.

If you make more than $325,000 or something, the amount over that is taxed at 35%.
WhiteWolf
12-14-2005, 09:28 PM
[ QUOTE ]
This is my first year as a pro gambler and I was told that I was going to have to owe 44%, 9% state tax, 35% income tax.
I will have deductions but this will not account for much and if this is true I will be getting torn a new one.

Is it really this bad?!?

[/ QUOTE ]

The numbers you quote are probably the top marginal rates. You would only pay that on any money above and beyond the top tier of income, probably around $100K or so. The money you make below that level is taxed at a lower rate.
GoodTiMes
12-15-2005, 01:42 AM
If you were in my posiiton, would it be a good idea to put one or two hundred k in the retirement account??
Guthrie
12-15-2005, 02:37 PM
[ QUOTE ]
If you were in my posiiton, would it be a good idea to put one or two hundred k in the retirement account??

[/ QUOTE ]
If you have one or two hundred k to put in a retirement account, then you should spend a couple of k on tax advice from professionals.
haakee
12-15-2005, 04:07 PM
No, if you spend enough of the year residing in CA then you are liable for CA state taxes.
haakee
12-15-2005, 04:09 PM
No. Social security tax is capped at around $90K, and the federal marginal rates below $90K are well under 35%.
12-17-2005, 02:01 PM
Hypothetically speaking, what happens if you don't pay taxes on your gambling earnings? How would they find out? How long will it take for them to find out?
J.A.Sucker
12-22-2005, 01:15 AM
If you post your real name and income, I'm sure we can help you answer your question.