taxes
 

id really love to hear from u guys about this bc my dad is buggin over the money i am making and the tax issue.

i play on pokerstars, and im cashing out , say, 1000 a month.

is it neccessary to fill out any paperwork for the government to collect taxes on it? i really have no idea what we are supposed to do.

is there anyone in my same situation (not the not knowing about taxes thing, what i mean is the making 1000 a month thing) who does\does not fill out anything for the government who can tell me what they do.

Re: taxes
 

Yes, you need to pay taxes. Get the book "The Gambler's Guide To Taxes" by Walter L. Lewis. Or get an accountant.

Re: taxes
 

Consult an accountant. Should run you about $200. He will set you up to pay quarterly estimated taxes.

Jeff

Re: taxes
 

Well, I think it depends on what jurisidiction you live doesn't it?

For example, I live in Canada, play on Empire and have cashed out thousands more than I put in, but I don't declare because in Canada gambling winnings are not taxable.

However, there is a provision in most tax codes like U.S. or Canada that if someone ostensibely makes their living solely from poker than an audit might be done and they would have to start declaring. I dunno, but I suspect not until your chartered bank alerts authorities that this might happen, so it would have to be very big numbers (in relation to say your income from a day job).

Having said all this, jurisidictional issues are very complex, especially as it relates to internet, age of consent, et al, and I'm not a lawyer, nor an accountant.

Re: taxes
 

I'll be seeing a professional come tax time next year.

Question: I 'whore' a lot...move moveny in and out of Neteller...but I have yet to cash out to a bank this year. When are you accountable taxwise: In the year you make a single dollar...or the year you cash out to your bank in? IE: should I wait till January 1, 2006 to make my first withdrawl back to my regular bank?

---Leavenfish

Re: taxes
 

Taxes are due on gambling winnings when they are earned, not when they are cashed out. If anyone is cashing out large sums of poker eanings he (or she) can afford to spend some $$$ and consult a true tax professional who can assess what he (she) must do to comply with the US Tax Code. Don't listen to a bunch of posters on an Internet gambling chat room, though some of us are CPAs or lawyers [img]/images/graemlins/wink.gif[/img]

One day the Congress will wake up and legalize Internet gambling. Then each site will have to provide the player with the proper 1099 form, which will make evading the tax man EV-.

Re: taxes
 

alot of you are so paranoid its laughable! [img]/images/graemlins/laugh.gif[/img]

unless you are cashing out hugh sums, lets say over 5 grand at a time and making it your sole income, you don't really need to worry.

I talked to an accountant and he said winnings under a couple grand here and there are so minimal no need to worry. It would be like a waitor or babysitter claiming ever dollar they make.

The government would waste more money and manpower on trying to collect the money you owe for it to even be worth it to them.

SO TO ALL YOU PARANOID freaks!!! GROW A SAC ! [img]/images/graemlins/tongue.gif[/img]

Re: taxes
 

alot of you are so paranoid its laughable! [img]/images/graemlins/laugh.gif[/img]

unless you are cashing out hugh sums, lets say over 5 grand at a time and making it your sole income, you don't really need to worry.

I talked to an accountant and he said winnings under a couple grand here and there are so minimal no need to worry. It would be like a waitor or babysitter claiming ever dollar they make.

The government would waste more money and manpower on trying to collect the money you owe for it to even be worth it to them.

Re: taxes
 

Its not a matter of whether or not they try to collect from everyone. Its a matter of whether or not they try to collect from you.

Good luck with your chosen course.

Re: taxes
 

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id really love to hear from u guys about this bc my dad is buggin over the money i am making and the tax issue.


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Online Poker Tax Info

Be particularly careful about documenting each session you play and don't be tempted to subtract your losses from your winnings--you have to take your losses as itemized deductions!

If you look closely, I'm sure that you'll find that though you are cashing out $1k a month, you are actually seriously in the red if you do your taxes correctly.

Your Dad is very right to be concerned about the tax implications of your online poker play. It is very very hard to do your taxes according to the law as a non professional and make any money.