Re: poker n taxes
 

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1. Keep accurate records
2. Report the sum of all winning sessions as *other income* on form 1040.
3. Report the sum of all losing sessions as an itemized deduction on Schedule A.
4. Calculate your tax the usual way. Pay what you owe.
5. Save your records in case you're audited.

Do this and you'll be fine.

Remember, you cannot simply report the net of your wins and losses as income. That is expressly forbidden by IRS Publication 529.



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This is probably the best way for most to file taxes but there's also the option for some to file as a professional (Schedule C).

Page with links about filing as a professional and why you may, or may not, want to do it:
http://www.onlinepokerfaq.com/guide/tax-links.html

Re: poker n taxes
 

The forum police really suck.

Some of us don't spend *all* our waking hours on this site.

Give us all a break. Boo on Pooh-bah.

Re: poker n taxes
 

[ QUOTE ]
The forum police really suck.

Some of us don't spend *all* our waking hours on this site.

Give us all a break. Boo on Pooh-bah.

[/ QUOTE ]

well even if your not gonna do it, its best that you know how to if you start making some cash

Re: poker n taxes
 

does anyone live in a state where net gambling is illegal but they pay taxes??? can you PM me , tell me what you do during tax time..

i need some help

Re: poker n taxes
 

I'm not American (no taxes on my poker winnings, HA!) but I have read on several different occasions that the IRS doesn't care whether you derived your income from legal sources or not, and that they won't report you to the police (even if you earned the money selling crack) as long as you pay them their share.

Re: poker n taxes
 

Even if it's not legal in your state you still pay taxes on it like it is. They're not going to go after you for reporting income even if it's from an illegal source. I've seen a case where it was tried and it was thrown out by the judge. State tax forms are usually 98% based on federal forms anyway.

Also, for all they know you won the money in Vegas where it is legal. You don't specify internet gambling.
-f

Re: poker n taxes
 

what do we post poker winnings as?