Question on paying taxes on poker winnings.

[h_ven]

The last two weeks I've cahsed out $10,000. I won a $35,000 R&A and paradise and cashed some money out from the Empire500 deal. What do I do about paying taxes on these. I've talked to several people, some say I can get away with it since paradise is in another country, and some say I have to up to 40%. Please give me some comments.

[ChicagoTroy]

Talk to an accountant.

I like the idea that you don't have to pay taxes because the site is hosted in another country, that's a howler.

[Stefan Prodan]

What's a R&A?

[Kevroc]

rebuys and add-ons

[ZeeJustin]

Regardless of what country Paradise is in, as a US citizen, you are legally and morally required to pay taxes on your winnings.

[Kurn, son of Mogh]

you are legally and morally required to pay taxes

Legally, yes. "morally" is debatable.

[Ficus]

Kurn,

A bit of history is in order. Once upon a time, there was a breed of warriors known as Vikings. What a Viking could defend was what he was able to own. Even the leader of a Viking band needed a trusted companion to watch his back while he relieved himself, lest someone take his position (and possessions) through assassination.

In modern-day America, we have the police and courts to enforce laws which guarantee property rights. We have the military to protect the country and its laws from external threats. None of the things you have or the money you make would mean anything if you were without these protections. Taxes are the price we pay for these protections (as well as other public services and benefits), and by being an American, you have agreed to hold up your end of the deal. You have already accepted the benefits of this social contract, thus you have a moral obligation to meet its terms, as concisely detailed in the U.S. tax code.

Perhaps you don't feel a moral obligation to pay taxes which will fund programs that you oppose or will not benefit from directly. However, they are part of the social contract, as negotiated by your representatives in Congress and your state legislature and your town council. When the contract finally reaches you, it is strictly an all-or-nothing deal, which is just the way it works.

[Warik]

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Perhaps you don't feel a moral obligation to pay taxes

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His gambling profits have already been taxed because his initial buyin consists of his own money that he has already paid tax on and his winnings consist of other peoples' money that they have already paid taxes on.

Income tax on gambling winnings is bullshit, as is income tax in general.

[astroglide]

your employer pays you with money they pay taxes on. their investors paid taxes on the money they made. etc. there's nothing unfair about paying taxes on winnings, but the mechanics of it could certainly be improved.

[nykenny]

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Income tax on gambling winnings is bullshit, as is income tax in general.

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u read my mind? [img]/images/graemlins/laugh.gif[/img] i wish i didn't have to pay tax at all, i'd be not poor [img]/images/graemlins/grin.gif[/img]