Are poker winnings considered normal income when it comes to taxes?
 

For example. If I have only 2 sources of income, my job and the money I make from poker. Suppose I make 8000 a year at my job and 2000 a year at poker. Is this the same as me making 10000 a year at my job without playing any poker?

In other words would I still be in the lowest income bracket and would my poker winnings be taxed on that brackets rate (i think its 10% for the lowest income bracket)?

Re: Are poker winnings considered normal income when it comes to taxes?
 

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Re: Are poker winnings considered normal income when it comes to taxes?
 

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Re: Are poker winnings considered normal income when it comes to taxes?
 

Yes, Yes, and Yes. The only problem is you can't net your wins and losses for a final total.

You have to report your winning sessions as income, and then deduct your losing sessions on Schedule C.

Re: Are poker winnings considered normal income when it comes to taxes
 

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Yes, Yes, and Yes. The only problem is you can't net your wins and losses for a final total.

You have to report your winning sessions as income, and then deduct your losing sessions on Schedule C.

[/ QUOTE ]

Yeah. That is truly insane. No business has to report its income, and then deduct the losses, and end up having to pay taxes on "profits" that exist only on paper. But because it's "gambling", we get the shaft. Sigh....

-Mike

Re: Are poker winnings considered normal income when it comes to taxes
 

Just one quick question as a UK player dont have to worry about taxes but.......

If in most states in the US online gambing is illegal how come it is fine for you to pay taxes on it. Surely if you are declaring income from online gambling it is admitting guilt if such activities are proved illegal.

To me its almost like a drug dealer or prostitute declaring their income from their illegl activities.

I realise its a very grey area in the law but it seems a double standard, your government does nothing to protect you when gambling online but is quite happy to take the proceeds.

Re: Are poker winnings considered normal income when it comes to taxes
 

Isn't there any way around this? I mean that is ridiculous, I don't even keep track of how much I win, and then how much I lose, I only keep track of my net. What am I supposed to do just make up some numbers that come out to my net? What does the IRS expect me to do? Ridiculous...

Re: Are poker winnings considered normal income when it comes to taxes?
 

No

Re: Are poker winnings considered normal income when it comes to taxes
 

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I realise its a very grey area in the law but it seems a double standard, your government does nothing to protect you when gambling online but is quite happy to take the proceeds.

[/ QUOTE ]

I really do wonder what they do when one does declare their winnings from onlin gambling

Re: Are poker winnings considered normal income when it comes to taxes