U.S. Online pros that pay their taxex....Question for you

[rusty JEDI]

What keeps you in the U.S.?

Why not move to some tax free location? You'd probably save enough to make mulitple trips per year back 'home.'

rJ

[MelK]

US citizens owe taxes on money earned outside the US.

[Pokeraddict]

I had a hard enough time getting my wife to move to a better school district for our kid, much less somewhere cold/rainy/overcrowded/whatever but you are right. I actually thought gambling income in Canada was taxable if it is a profession and not a jackpot, this not true?

[rusty JEDI]

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I actually thought gambling income in Canada was taxable if it is a profession and not a jackpot, this not true?

[/ QUOTE ]

As i understand it it is taxable. I dont play professionally though so I dont make enough to make moving out of the country to avoid a little in taxes worth it. Add to that the fact I already live in the greatest Country in the world and there is really no reason to move.

I could never and have never made an attempt to play professionally. To be totally honest I cant stand playing poker (BORING) and today is the first day in 3 months that ive played. I am still working on some school stuff and i only play enough to pay off all of my living expenses and tuition. I also take a summer job with other students just for some form of work atmosphere socialization.

rJ

[4thstreetpete]

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I actually thought gambling income in Canada was taxable if it is a profession and not a jackpot, this not true?

[/ QUOTE ]

Be aware that a lot of the tax advice that you find on this forum are from 18-20yr olds that has never paid income taxes before much less report any of their poker winnings to Rev Canada or the IRS.

If you're a pro in Canada, you're "suppose" to pay taxes on it. Of course the vast majority don't. If you play live at B&Ms there's no way for the government to catch you.
When you play online however, there's a large paper trail that leads from neteller to your bank.

I would guess the the percentage of people who report their poker earnings on their income tax goes WAY up the more you make. If I made 5K a year I'll probably take a chance because it's not worth it for the government to go after you, but if you make like over $100K then that's a totally different story.

I live in Canada and I pay taxes on all my poker earnings. There's times I feel like such a dummy for doing it but the amount I earned during my first year as semi pro was too much for me not too. I will be making considerably more the next following years. However, the main reason I did was because I believe my earning potential is a lot higher than what it is now and I didn't want to do anything that would jeopardize that.

I talked to a lot of people and most of them don't report any taxes. I also talked to a canadian pro here that made about $200K this year that did not report any of it on their income tax. He has a wife and kids which kinda blew me away. I'm not sure I could take that chance if I had a family dependant on me as you'll get in a lot of trouble if you get audited and they find a regular stream of income coming into your bank. I think a lot of people underestimate what kind of trouble they'll get themselves into for tax evasion.

I play online almost exclusively as it's still a pretty far drive to the nearest casino. I'll be looking to play a lot more live in the future.

[MicroBob]

I would/am seriously considering it.

Income made outside the US is ta-free for the first $80k I believe which is pretty significant (especially if you move aborad to a low cost of living area).

[tablecop]

[ QUOTE ]
I would/am seriously considering it.

Income made outside the US is tax-free for the first $80k I believe which is pretty significant (especially if you move aborad to a low cost of living area).

[/ QUOTE ]

Foreign EARNED income is exempt upto an amount.

one IRS page of interest

[Shoe]

[ QUOTE ]
[ QUOTE ]
I would/am seriously considering it.

Income made outside the US is tax-free for the first $80k I believe which is pretty significant (especially if you move aborad to a low cost of living area).

[/ QUOTE ]

Foreign EARNED income is exempt upto an amount.

one IRS page of interest

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Is income you file on your schedule C not considered to be "earned"?,

[Nigel]

As a pro in Canada, you're supposed to be paying taxes as well.

US citizens still have to pay taxes even if we live overseas. You might as well just stay here and cheat the IRS from home.

Nigel

[ctv1116]

because America kicks ass.