Won the stars $500+$30...

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In a completely unrelated topic.. if I were to get a neteller account and get a neteller debit card, I could withdraw directly from there without any bank records, right? Just curiosity asking.

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Neteller is a Canadian corporation. Canada is the largest trading partner of the US. Need I say more? [img]/images/graemlins/crazy.gif[/img]

[SenorBeef]

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In a completely unrelated topic.. if I were to get a neteller account and get a neteller debit card, I could withdraw directly from there without any bank records, right? Just curiosity asking.

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Neteller is a Canadian corporation. Canada is the largest trading partner of the US. Need I say more? [img]/images/graemlins/crazy.gif[/img]

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Yes. "Trading partner" doesn't mean "shares invasive banking data".

[Wayne]

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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?

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Someone reported that the Neteller debit card is actually issued by an American bank. Who knows for sure? Do you feel lucky?

[SenorBeef]

If I make 100k this year playing poker, what sort of tax hit am I looking for, including social security and whatever else I'd need to pay? What would my take home be?

[gergery]

The rules on US citizens paying taxes on income are highly dependent on your residency. If you live outside the US for the majority of the year (~11+ months) then you do not pay taxes in the US. Actual tax due depends on the particular country and the number of days you reside in the US in a tax year.

On the S-corp, you can clearly set one up and adjust the type of payments you distribute to yourself to reduce taxes significantly (ie. shift payments from salary to dividends). But the key question is what IRS say about this and what they will allow.

You really need to talk to an accountant for details with this much money at risk, and you could also talk to the IRS for free and anonymously.

Out of curiosity, do you plan to ask your accountant for advice on how to play poker?

--Greg

[$DEADSEXE$]

I wonder how it works if you transfered a serious of $ amounts to different accounts on pokerstars, friends family etc..if you could trust them. Not sure how Pokerstars handles cross account transactions of $1000 and higher.

Beef I started watching your comback when you put in your last $714 bucks...it was some crazy ass [censored]...I think you scared the crap out of everyone at the table except EasyH.

Did you put up the full $500 or did you get in on a satellite and if so which one and how much did you spend in sat's in order to get into the Tourney?

What was your play like up too the top 50/100?

[Mr. D]

Quoting the thread:

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

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

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.

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.

The rules on US citizens paying taxes on income are highly dependent on your residency. If you live outside the US for the majority of the year (~11+ months) then you do not pay taxes in the US. Actual tax due depends on the particular country and the number of days you reside in the US in a tax year.
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Now lets say I have no other job, I make money playing poker online from a laptop as I travel the US and I pay for everything with credit cards. Money moves from Neteller to my US bank account to Citibank to the tune of <50K per year.

Legality aside, do I file my taxes? Can I pretend I was living out of the country?

Howabout if we change the scenario to traveling outside the US for the entire year?

I know you guys aren't tax experts.. but I think permananent vacation funded by online poker from a laptop is a serious consideration for many of us and whether it is a practical necessity to give up a third of it to Uncle Sam is an important question.

Clearly this could be accomplished on a cash basis in the B&Ms, but the additional freedoms of online play are very attractive.

[juris]

This is not sound advice. You are obligated to pay taxes on gross income for the calendar year. Guess what? That money is all gross income-yours.

Transferring it to anyone or anything does not mean you do not have to report it. It's creative advice, but leaves you wide open to an audit and penalties.

[FrankLu99]

congrats!

[JARID]

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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%.



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Vandalay, with all due respect this advice is quite reckless.

First, S-corporations do not pay dividends because they do not have any accumulated earnings and profits from which to pay dividends. (The exceptions are S-corporations that were C-corporations or S-corporations that formed prior to 1983. But this is not the case here.) By contrast, in an S corporation, all business profits "pass through" on a K-1 to the owners, who report them on their personal tax returns. You can take a "distribution" prior to the completion of your K-1, but it still listed on your k-1 and is still taxed as ordinary income. Some owners take funds as needed and report them as distributions, thus avoiding Social Security taxes . However, the owner is the company’s employee and payments of profits are like wages.
Second, an s-corp that doesn't pay a reasonable salary could be a red-flag for an audit.

Third, many people can file Articles of Incorporation, pay the fees, and think that is all that is necessary to complete the formation of a corporation. If they do not issue stock certificates, create minutes of the organizational meeting, elect or appoint directors and officers, authorize banking, adopt bylaws, and generally tending to setting up corporate housekeeping, the IRS will be able to disregard the corporation and go after the owner individually. All of the benefits of being incorporated will be lost. If the principals of a corporation do all this correctly, then fail to hold annual meetings, file annual registrations, and generally treat the business as a business, again they could lose the corp.

I think better advice here is for our hero to consult a good CPA or tax attorney which it seems he is ready to do. If I came off sounding like a dick here, it was unintended, your advice just seems different from what I know to be true.

Regards,
Jarid