Poker as Taxable Income

Namdrahsirhc · #1 02-23-2005, 09:30 AM

Ive been thinking about how professional poker players deal with the IRS. Is gambling taxable income? If so how does one go about proving how much one made (or didnt make) in any given year. Looking for responses from anyone who has poker as their main source of income. Any comments appreciated

Seijuro · #2 02-23-2005, 12:53 PM

It doesn't count as taxable income in the UK. God knows if it's taxable for yanky doodle dandys though. I too would be interested in finding out.

JonLines · #3 02-25-2005, 01:32 PM

[ QUOTE ]
It doesn't count as taxable income in the UK. God knows if it's taxable for yanky doodle dandys though. I too would be interested in finding out.

[/ QUOTE ]

Yeah living in the UK rules! Plus you can leave as many trails as you like in a holiday in Vegas, come home and be free from the IRS.

I think the USA might be the only country that actually taxes gambling winnings. Anyone know of any others?

Kurn, son of Mogh · #4 02-26-2005, 01:03 AM

One reality about the US is that, while we have the lowest tax rates of any industrialized country, we also have the most draconian tax enforcement.

Loci · #5 02-26-2005, 01:08 PM

Excellent use of the word Draconian, Mogh.

tek · #6 02-23-2005, 01:29 PM

Tournament winnings are taxable (they give you a W2G).

Cash game winnings are usually not taxable. If you win over 10k they'll probably ask for your numbers.

bobbyi · #7 02-23-2005, 01:49 PM

[ QUOTE ]
Tournament winnings are taxable (they give you a W2G).

Cash game winnings are usually not taxable. If you win over 10k they'll probably ask for your numbers.

[/ QUOTE ]
You seem to be confusing things for which you are required to fill out forms with things that are taxable. If you make money playing poker, it is income and you are legally obligated to pay taxes on it (in the US).

tek · #8 02-24-2005, 01:26 PM

Maybe you internet players have to pay taxes on your cash game winnings becuase you have an audit trail.

In live B&M cash games, there is no audit trail. You cash in and cash out. End of story. Only if you win more than 10k in a 24 hour period cumulaative in the same casino do you have an audit trail.

And as I said before, live poker tourneys will W2G you for any amount you win at the final table.

BugsBunny · #9 02-24-2005, 01:33 PM

You're confusing an audit trail with "is it legally taxable income". It's true that there's no audit trail. It's also true that it's still legally taxable income. Now will you get caught if you don't report it? That's another issue altogether.

Schwartzy61 · #10 02-25-2005, 04:07 AM

All income from whatever source is taxable except for certain tax exempt investments and things.

To put it another way, if you sell drugs and make a profit that profit is taxable income. There isn't an audit trail and you earned it through illegal methods but the income is still taxable. The IRS really doesn't care how you made the money it just wants some of it.