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#11
03-06-2005, 03:05 AM
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Re: When are internet poker earnings taxable income?
So do all of you actually report your winnings/losses or just saying that is how it works?
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#12
03-06-2005, 03:31 AM
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Re: When are internet poker earnings taxable income?
[ QUOTE ]
So do all of you actually report your winnings/losses or just saying that is how it works? [/ QUOTE ] My guess is that most people just say that's how it works. I'm sure a lot of people report it, but just the overall number, not wins and then deduct losses. Technically you're supposed to report wins and subtract losses, though.
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#13
03-06-2005, 02:48 PM
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Re: When are internet poker earnings taxable income?
[ QUOTE ]
I think Greg's answer is correct. If you use poker tracker, its easy to export all your sessions to an excel spread sheet, then use an if statement to separate the wins and losses. Remember, you only have to report the total of your winning sessions under miscellaneous income and then subtract the total of your losing sessions (up to the amount of your winnings) on schedule A. What most of you will find, howerver is that if you had a break even or losing year you will pay more taxes than otherwise because your gross income will be higher. It's not fair but it is the law. [/ QUOTE ] I'm reporting as a professional player, so all this goes on schedule C, along with expenses such as travel, internet access, computers, etc. This means you don't have to report on a session by session basis either and it doesn't artificially pump up your AGI. I can do this because I made a profit from, and devoted significant time to playing poker. My tax advisor is comfortable with this, but I recommend consulting your own, as I am an idiot, and my tax advisor may be one too.
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#14
03-06-2005, 10:32 PM
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Re: When are internet poker earnings taxable income?
[ QUOTE ]
My tax advisor is comfortable with this, but I recommend consulting your own, as I am an idiot, and my tax advisor may be one too. [/ QUOTE ] I've talked with an accountant about this and he basically agrees. You don't need to track on a session by sesion basis. As long as you have a log of your winnings and it matches up with what you declare the IRS will accept it. But you need some type of log and of course if you declare a lot less than you made the IRS might make you explain those extra deposits, etc.
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#17
03-07-2005, 01:36 AM
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Re: When are internet poker earnings taxable income?
http://www.irs.gov/individuals/page/0,,id%3D14476,00.html
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#18
03-07-2005, 03:39 PM
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Re: When are internet poker earnings taxable income?
I agree all income earned from gambling must be declared to satisfy the IRS.
I was just commenting on how "sessions" are recorded with respect to online poker. I believe this is different than live because you don't have ready access your internet poker account, where a live poker player can go to the cage and get cash. Internet poker players have to go thru a process to cash out, so it's more like stocks where the value fluctates day to day, so you only record earnings you "sell/cashout", so to speak.
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#20
03-07-2005, 04:01 PM
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Re: When are internet poker earnings taxable income?
[ QUOTE ]
I was just commenting on how "sessions" are recorded with respect to online poker. I believe this is different than live because you don't have ready access your internet poker account, [/ QUOTE ] I would think that a session would be defined differently on-line. I really doubt that players that won at PokerSpot owed tax on their winnings.
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