Online poker and taxes...?
 

I'm just curious how the government keeps track of gambling wins/losses over the internet. Someone told me that on partypoker the government looks at cashouts over $1500, which seems to make sense considering my large cashouts seem to take a bit longer. I tend to cashout/deposit a lot and have honestly lost track of my wins/losses...is this a big deal, something I need to be taking close tabs on? I am by no means a professional, more of a recreational player. It seems that it would be a bit of a hassle keeping track of all my sessions wins/losses, but at the same time I don't want to get myself in trouble with Uncle Sam. Also, typically what % of reported winnings go to the government?

Thanks

Re: Online poker and taxes...?
 

Yes, you should be keeping track of all of your sessions (not just for tax reasons). Just start a simple spreadsheet.

There a ton of posts on taxes. Just do a search, and you'll find answers to all of your questions.

Re: Online poker and taxes...?
 

I've made 3000 this year. However, I only work 3 months a year, and the majority of that money is tips, therefore, 3000 is more than what I make in reported wages.

Should I worry about reporting such a small amount of money.

Re: Online poker and taxes...?
 

[ QUOTE ]
I've made 3000 this year. However, I only work 3 months a year, and the majority of that money is tips, therefore, 3000 is more than what I make in reported wages.

Should I worry about reporting such a small amount of money.

[/ QUOTE ]

Of course you need to report it. Most people don't consider $3,000 chump change.

Re: Online poker and taxes...?
 

[ QUOTE ]
I'm just curious how the government keeps track of gambling wins/losses over the internet.

[/ QUOTE ]

They don't. You're supposed to. You should report winnings as income, if you don't, you are breaking the law. Is this a big deal? Depends who you ask. To me, it seems stupid not to pay your taxes.

Re: Online poker and taxes...?
 

[ QUOTE ]
I've made 3000 this year. However, I only work 3 months a year, and the majority of that money is tips, therefore, 3000 is more than what I make in reported wages.

Should I worry about reporting such a small amount of money.

[/ QUOTE ]
Legally speaking, you should also be reporting all of your tips as well.

Re: Online poker and taxes...?
 

[ QUOTE ]
[ QUOTE ]
I've made 3000 this year. However, I only work 3 months a year, and the majority of that money is tips, therefore, 3000 is more than what I make in reported wages.

Should I worry about reporting such a small amount of money.

[/ QUOTE ]

Of course you need to report it. Most people don't consider $3,000 chump change.

[/ QUOTE ]

Obviously I should. However, it costs me 300 dollar in taxes. Is the IRS really going to designate resources to audit me in order to get 300 dollars?

Re: Online poker and taxes...?
 

If every American did that, it would cost $88Billion.

It isn't the idea that your $300 is ultra important, in and of itself, but there needs to be fear that you can't cheat the government.

As I learned in college: Don't mess with the revenue, that can't be argued... expenses...different story.

Re: Online poker and taxes...?
 

[ QUOTE ]
If every American did that, it would cost $88Billion.

It isn't the idea that your $300 is ultra important, in and of itself, but there needs to be fear that you can't cheat the government.

As I learned in college: Don't mess with the revenue, that can't be argued... expenses...different story.

[/ QUOTE ]

I'm going to make the assumption that you don't already realize that every American already underreports at least 300 dollars of tax revenue a year.

GAO knows this and compensates with a higher tax rate. Thus, the government basically lays a small percentage to every citizen [img]/images/graemlins/grin.gif[/img].

Re: Online poker and taxes...?
 

I heard that party poker doesn't report anything to the IRS.