Re: poker taxes
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- Generally speaking, you are required to pay either quarterly estimated tax or tax withholding on all income. If you get a salaried paycheck, they already withhold taxes; if you generate any other income that is not already withheld, you are expected to pay estimated taxes on it (because the government wants its money now instead of next year). However, if you fail to pay your estimated taxes, there is an allowable margin of error when you file your taxes next year, but if you fall outside this margin (i.e you made TOO much money gambling) you will have to pay an estimated tax penalty; see the instructions for the IRS 1040 for more info (the estimated tax penalty is at the bottom of the second page). Personnally, I just bought a house this year and my real-job income has stayed constant, so my resulting deductions will offset my gambling winnings, so I will not have to pay an estimated tax penalty.
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I was planning on having my non-poker employee withhold extra moeny from my paycheck every week to cover gambling winnings. Do you (or does anybody) know if this is ok?
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