Rakeback, taxes, and an argument for the IRS

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Believe whatever you want, and pay your taxes accordingly.

I consider it income - I pay on everything I take from Neteller to my checking account. Makes it pretty simple for me.

Dogmeat [img]/images/graemlins/spade.gif[/img]

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That surely does make it simpler for you, but it doesn't make it correct. Whether your income (winnings, bonuses, rakeback) is kept at a poker site, at Neteller, or in your checking account doesn't affect its categorization as taxable income.

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I hope this isn't a dumb question but how does a tax auditor know about your neteller account? It's not like neteller sends a form reporting what you have every year. I probably will not pay taxes until I make a decent amount. I work and goto school full time so what I make isn't much.