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#11
07-18-2005, 10:45 PM
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Re: taxes
[ QUOTE ]
If you look closely, I'm sure that you'll find that though you are cashing out $1k a month, you are actually seriously in the red if you do your taxes correctly. [/ QUOTE ] Good God...if this is accurate I'm gonna shoot myself (this is my 1st year playing seriously and cashing out a profit every month). Is it anyone else's experience that the jump in tax bracket (due to the higher gross income) actually makes it useless to be a 1K/month player? 
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#12
07-18-2005, 11:12 PM
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Re: taxes
[ QUOTE ]
Is it anyone else's experience that the jump in tax bracket (due to the higher gross income) actually makes it useless to be a 1K/month player? [/ QUOTE ] It is only partially related to having a higher income. It is mainly due to the fact that you are supposed to report your winnings from each session as income, while you must report your losses from each session as an itemized deduction. So, if you play tomorrow morning and win $100, and play tomorrow afternoon and lose $80, you must report income of $100 for the morning session. You can apply the $80 loss to your itemized deductions--you cannot subtract it from your winnings. If over the course of the year you have a total of $42,000.00 in winning sessions and $30,000 in losing sessions, you must report $42,000 in poker income. You can apply $30,000 to itemized deductions, but how much of that actually translates into reducing your income depends very much on your financial situation outside of poker. It is quite possible that you can make $12,000 but the tax consequences of increasing your total income and going from standard deduction to itemizing can completely wipe out your $12 in profit. Indeed, it can leave you in the hole.
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#13
07-18-2005, 11:25 PM
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Re: taxes
Let's say for example that I have a friend, who is 18, has never had a job before is making 4-5k a month playing poker and cashes it all out through checks or using the neteller debit card or even EFT? What would the chances that said person would get busted for tax evasion.
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#14
07-18-2005, 11:51 PM
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Re: taxes
[ QUOTE ]
Let's say for example that I have a friend, who is 18, has never had a job before is making 4-5k a month playing poker and cashes it all out through checks or using the neteller debit card or even EFT? What would the chances that said person would get busted for tax evasion. [/ QUOTE ] About .001% imho........
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#17
07-19-2005, 12:16 AM
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Re: taxes
its called a typo douche, look into it. Oh I forgot you are special your name is in green for having no life [img]/images/graemlins/grin.gif[/img]
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#18
07-19-2005, 12:21 AM
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Re: taxes
you being a [censored] moron is a lot more likely than you accidentally twice hitting the 'h' key instead of the 'e' key
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#19
07-19-2005, 09:34 AM
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Re: taxes
sthief,
You need to use the "ignore this user" button and not have to see his drivel at all. Please do NOT ban him unless you can just ban his IP. Because he will simply come back in some other incarnation that I will again have to wade through a bunch of his crap before I realize it is the same guy and ignore again.
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#20
07-19-2005, 10:58 AM
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Re: taxes
[ QUOTE ]
[ QUOTE ] id really love to hear from u guys about this bc my dad is buggin over the money i am making and the tax issue. [/ QUOTE ] Online Poker Tax Info Be particularly careful about documenting each session you play and don't be tempted to subtract your losses from your winnings--you have to take your losses as itemized deductions! If you look closely, I'm sure that you'll find that though you are cashing out $1k a month, you are actually seriously in the red if you do your taxes correctly. Your Dad is very right to be concerned about the tax implications of your online poker play. It is very very hard to do your taxes according to the law as a non professional and make any money. [/ QUOTE ] How is this possible? It seems pretty ridiculous.
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