tax help

[jackfrost]

A friend sent me to this forum to find out info on taxes, couldn't find the proper thread. I read another thread on this but it didn't really touch on what i'm looking for. If you are familliar with a thread covering the info i'm inquiring about, please post it.

Play online for a living.

I'm assuming that I will need to pay medicare and social security along with the taxes so if that could be included in the answer i would appreciate it.

How much will i pay in taxes if I make:
$20,000
$40,000
$60,000
$80,000

An estimate or a link to some info on this would be appreciated.

Also I heard something about the poker sites sending a statement to the IRS. Any truth to that?

Thanks

[gabyyyyy]

[ QUOTE ]
How much will i pay in taxes if I make:
$20,000
$40,000
$60,000
$80,000


[/ QUOTE ]

You will generally pay between 15-30 percent tax for FICA (Social Security), Medicare and Federal Income Tax withholding combined. If you live in a state that has income tax you may have to pay that as well.

[ QUOTE ]
Also I heard something about the poker sites sending a statement to the IRS. Any truth to that?

[/ QUOTE ]

No. However, your bank may report deposits that exceed a certain amount. I think that the threshhold is $10000

As always, your best resource for tax information is http://www.irs.gov

[Patrick del Poker Grande]

It seems to me that situations such as this could be somewhat sticky. Strictly speaking, how legal is it to play online in the US, and in particular, different states? Not paying taxes is obviously quite illegal (i.e. Willie Nelson) - it seems like a bit of a catch-22 situation if you've got a load of cash from somewhere and you're not paying taxes on it, but if you claim $100k from online poker, that may interest some people you'd rather not take an interest in your play.