#1
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taxes for a new SSNLer
Hi,
I've browsed all the taxes threads I can find and they are all about people making >$5000 a year. I started playing poker online in september with a $75 deposit and now am up to $1200, and now that school is out for a month, I hope to double that by next semester's start. Assuming I have >$1500 come new years and >$2000 by march, will I need to file? Do most of you new 25NLers and other small stakes players file? Do I need to get a CPO to answer my questions? HR Block did my taxes last year (summer job+part time work study+random temp work on holidays, ~$7000 all told). I have never cashed out, and I don't intend to until I am playing some serious stakes ($200NL probably). I'm at $50NL now. Don't know if this makes a difference. Thanks |
#2
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Re: taxes for a new SSNLer
if you're at $50NL with only $1200, you probably won't need to worry about filing as soon as you hit the slightest variance.
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#3
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Re: taxes for a new SSNLer
assuming I have >$1500 come new years and >$2000 by march
What you have by March is irrelevant. The tax year ends on 12/31. After that, you start all over again. |
#4
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Re: taxes for a new SSNLer
If you continue to make decent wins, you're going to want to find out about prepaying your taxes quarterly. I'm not sure what the $ limit is, but somewhere in there, the IRS can assign penalties for not prepaying for non-W2 income.
I'd invest some of your winnings in a consultation with a tax accountant just to make sure you don't get bitten for it later. |
#5
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Re: taxes for a new SSNLer
Here's a web page on poker and taxes.
taxable talk Basically, you have to file a tax return on any income even if your net tax to the feds will be zero. You don't file, you're breaking the law. You must claim $ won at each session. You cannot net you winnings and losses and only claim the difference as income. I am not an accountant or tax attorney so do not take anything I say at face value. Check around. go to the web page I listed and read all 5/6 posts he has up about poker and taxes. It will be enlightening. |
#6
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Re: taxes for a new SSNLer
So it is my understanding that every single US player at Party Poker should be reporting to the IRS every time they come out ahead for a session?
If I do report my winnings, given the scenario I described in the OP, is it feasible that I will lose money (due to additional taxes and inability to use the standard ~4750 deduction) in spite of a $1500 net win? How many of you success-stroy type players reported taxes while playing the 25s and 50s during your first few months? |
#7
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Re: taxes for a new SSNLer
[ QUOTE ]
you probably won't need to worry about filing as soon as you hit the slightest variance. [/ QUOTE ] Assuming I lost all 29.2 buyins in the next two weeks (current bankroll = $1460), I'd still have to report my winnings and deduct my losses up to the amount I won, right? |
#8
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Re: taxes for a new SSNLer
No you can use the standard deduction if you don't itemize. You have to add all your winning sessions together and claim it as income. If you don't own a house or have other itemized deductions shown on schedule A then all you can claim is the standard deduction. You just can't net out all your winning and losing sessions and claim that is your income from poker.
once again my disclaimer is you should talk to a tax professional as I are not one! [img]/images/graemlins/grin.gif[/img] |
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