Won the stars $500+$30... - Page 3

Mr. D · #21 07-26-2004, 03:01 PM

Is Poker Stars run out of the United States? I heard from a tax guy that poker winnings on Party Poker aren't taxable because the site is run from outside the US. Can anyone shed any light on taxes as far as Party Poker is concerned?

swami · #22 07-26-2004, 03:18 PM

US citizens must pay tax on all worldwide income regardless of their residency or source of the income.

Toro · #23 07-26-2004, 03:20 PM

Of all the sites, Pokerstars is probably the one I would least worry about. But having said that, there is no way I would leave 80K sitting in there.

I know you're loathe to pay all those taxes, I would be too, but you know in the end you're not going to risk it.

So, get the money out and secure in your own bank.

vandalay · #24 07-26-2004, 03:32 PM

Have it paid to your S-corp (300 to create one), and then you can pay yourself a 1-time dividen at the end of the year of 80k. Of that, you will only pay dividen taxes of 15%.

-VI

SenorBeef · #25 07-26-2004, 03:48 PM

If I had a neteller account and a neteller debit card (they offer those, right)... that would never end up being reported to the IRS, would it?

Mr. D · #26 07-26-2004, 03:50 PM

> US citizens must pay tax on all worldwide income
> regardless of their residency or source of the income.

So if I move to canada and get a job up there, the US expects me to pay taxes? Does the US let you relinquish your citizenship? What happens to people with dual-citizenships? Dual taxes on a single income? This seems absurb! (not that absurdity in US law is unpresidented)

I guess it comes down to evidence and enforceability, but I sure wish I lived somewhere with fair, rational laws. Anyone know of such a country thats accepting new citizens? [img]/images/graemlins/tongue.gif[/img]

fnurt · #27 07-26-2004, 03:55 PM

Unless you renounce your US citizenship, you always have to pay US taxes, no matter where you live and work.

It's easy to label this draconian and unfair, but there seem to be a lot of people who would rather pay these taxes than renounce their US citizenship. You'd almost think it was worth it or something.

fnurt · #28 07-26-2004, 03:59 PM

[ QUOTE ]
Have it paid to your S-corp (300 to create one), and then you can pay yourself a 1-time dividen at the end of the year of 80k. Of that, you will only pay dividen taxes of 15%.

-VI

[/ QUOTE ]

This is very bad advice. You should speak to a tax authority if you are considering setting up anything of the sort.

PrayingMantis · #29 07-26-2004, 04:42 PM

[ QUOTE ]
Unless you renounce your US citizenship, you always have to pay US taxes, no matter where you live and work.

[/ QUOTE ]

I'm no expert, but as far as I know there are agreements between the US and other countries, as to individual taxing. As it does not make any kind of sense if a person with double-citizenship (USA and X), and is living in X, will pay his full taxes to X (as he must do), AND, on top of it, full taxes to the US.

I believe the question of actual residency is very importnat in such cases.

fnurt · #30 07-26-2004, 04:52 PM

This is true. The point I was attempting to convey was that you are still subject to US tax laws if you live abroad, not that you are treated the same as a US resident in all respects.

For example, my roommate, who just returned from a stint in Thailand, was not required to pay US taxes on any income up to $80,000. I don't know whether this amount varies country-by-country or if it is a generally applicable rule for all citizens working abroad.