Do we need to Pay Tax on Poker income?

[oldfish]

Hi,

Just a questions for all those winner:

1. Do we need to pay tax on online poker winnings?

2. If we earn some money from affilicate programs online, how do we report and pay tax?

Anyone got some ideas?

[over_c]

1. Yes. All gambling earnings are subject to tax. I'm not sure if it is income tax or capital gains tax though. But you still have to pay.

2. I would guess that affiliate earnings are taxable income as well.

[Redhotman]

[ QUOTE ]
Hi,

Just a questions for all those winner:

1. Do we need to pay tax on online poker winnings?

2. If we earn some money from affilicate programs online, how do we report and pay tax?

Anyone got some ideas?

[/ QUOTE ]
there are many ways to avoid taxes and prevent anything from showing up on the books, pm me for more info....

[Prickly Pete]

Affiliate income and poker winnings are both taxable as regular income.

[lorinda]

1. Yes, but England (and I believe Canada) are exempt.

Lori

[IJW]

Affiliate income prop income etc..
COULD also be taxable in the uk.

[4Finger]

Signing up for Neteller and a debit card is a nice way to avoid goverment control

[Cyndie]

I was thinking that prop income might be taxable there, but there is such a good case in most prop programs that the prop compensation is a promotion...and as such would just be part of your winnings.

Lorinda, RamJam, you have a good feel for that...would it matter if you were paid by the hour, or rebated your rake, or paid so much per hand played?

[oldfish]

but now the thing comes: how do we report the amount?

WInning minus lose? plus other related expense?

[Cyndie]

I am reading through my copy tonight...and will give a couple quotes, but strongly recommend you get on the list to buy the book, and if you like Ebooks...let him know. I really believe ebooks are cheaper and easier to update than paper books...especially for this type of information.

The things I found especially interesting were the court cases that were needed to get gambling treated as a "business" instead of a chance happening. The final outcome is still not fair IMO for the serious part-time gambler who looks to poker to supplement his income, or to provide a "job" after an early retirement!

I am going to be asking for some clarification on treatement of prop players, and affiliate income...but the book is excellent and readable.

So get your questions posed, and I will try to find the short quotes...longer answers can be given directly by the author. I asked if he would do email consultations, and he said he would. Not sure what he would charge, but when I asked how much fees would be to get a friend back in compliance after a year or two of non filing, he guessed probably five hundred to a thousand dollars...a lot of money, but a lot less than getting caught before you tried to file!