#11
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Re: Online poker and taxes...?
I'll ask this question here since it's as good a place as any....
Those of you who report your online poker income(I just started playing, so I'm not in that position), do you still do so if you live in a state that prohibits on-line gambling? It all gets reported as gambling income, correct? There's no need to specifiy where it came from? |
#12
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Re: Online poker and taxes...?
Of course they don't. But why does that matter?
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#13
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Re: Online poker and taxes...?
You are REQUIRED to report your income. You also have a right against self-incrimination. Thus, the state or feds could not use your tax-info against you in this way to try to 'get you' for playing poker online...otherwise being forced to file taxes would completely contradict one's right against self-incrimination. This is my understanding anyway. I believe I read this in Gambler's Guide to Taxes by Walter Lewis as well as on here. Not sure though. About the $1500 thing - slot-machine and other casino wins of $1500 (or is it $1199...whatever) require a W-2 form or something. But party-poker isn't in the US. They don't have to file anything. You can win $100k from them and they still won't file anything to the US. You are required to report it however. Similar situation - On the PartyPoker tourney/cruise I made the money and won $5215. I was just givenmost of this money in cash ($3k right into my hand...the rest into my party account). since it was a partypoker cruise that took place on international-waters (in other words, not in the U.S.) they didn't take any taxes out. However....I believe that if I make the money in the WSOP main-event I will have some sort of tax-form to fill out and they might remove the taxes from the winnings right there and then. There's a difference between winning money in a tourney IN the U.S. and operated by a U.S. company as opposed to winning money OUTSIDE the U.S. in a tourney operated by a non-U.S. company. |
#14
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Re: Online poker and taxes...?
[ QUOTE ]
I'm going to make the assumption that you don't already realize that every American already underreports at least 300 dollars of tax revenue a year. [/ QUOTE ] every american? i didn't underreport. [ QUOTE ] GAO knows this and compensates with a higher tax rate. Thus, the government basically lays a small percentage to every citizen [img]/images/graemlins/grin.gif[/img]. [/ QUOTE ] so basically the people who underreport are screwing the honest ones. |
#15
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Re: Online poker and taxes...?
[ QUOTE ]
About the $1500 thing - slot-machine and other casino wins of $1500 (or is it $1199...whatever) require a W-2 form or something. [/ QUOTE ] yeah, the W2G thing is >= $1,200. the casino is also supposed to withhold taxes...i believe it's 20% if you give them a SSN, 28% otherwise. |
#16
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Re: Online poker and taxes...?
That only applies to certain types of wagers. If you win a $1200 pot at $40/$80 they certainly don't stop the game to issue a W2.
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#17
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Re: Online poker and taxes...?
unless you are making annulally over 50,000 or are pulling in cashouts of over 10,000, no need to really worry about it.
The government is like any other business, its not profitable for them to go after someone who owes them a grand or two in taxes, they go after people who they can get tens of thousands from or more and they are alot of other ways people are making alot more money then online gambling. |
#18
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Re: Online poker and taxes...?
unless you are making annulally over 50,000 or are pulling in cashouts of over 10,000, no need to really worry about it.
The government is like any other business, its not profitable for them to go after someone who owes them a grand or two in taxes, they go after people who they can get tens of thousands from or more and they are alot of other ways people are making alot more money then online gambling. ok |
#19
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Re: Online poker and taxes...?
If you win a bad beat jackpot or a tournament, they will make you fill out a W2-G. Live poker and house banked table games are not subject to this, as far as I know, but if you cash out (or buy in for) more than $10,000, they will file a Currency Transaction Report. It's easier to get away with non-reporting for cash games, if you're so inclined, because you are paid in cash. Online, you are going to have to make a bank deposit, which, while not reported to the IRS, does leave an audit trail that the IRS can find should they audit you. If they do, you are subject to penalties and interest on the unpaid tax, and possibly criminal prosecution, if they want to get nasty. Of course, if you are playing live games for high enough stakes that you are depositing winnings in a bank, or making large purchases, this can also be picked up by an audit. If you're winning a few hundred bucks now and then at the 5/10, and just using it for extra spending money, it's unlikely that the IRS will ever have a clue. Whether you report it or not is between you and your conscience.
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#20
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Re: Online poker and taxes...?
The IRS does do random audits. It's probably pretty low probability that they would hit me, but I sleep better knowing that I won't get nailed. Besides, my net poker income is already over $40,000 for this year and will most likely be well over $50,000 for the year. I don't cash out more than $10,000 at a time, but I don't think that's any guarantee that I wouldn't get caught if I didn't report. I personally don't see tax evasion as immoral, but I don't want to run afoul of the IRS. They fight dirty and the courts support them (judges know where their salary comes from), so I'm going to be a good boy and pay my taxes.
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