How much money should I keep online?

[cardsharkk04]

I plan to pay taxes on the 75k that i've cashed out this year, but since i'm under 21 is it technically allowed to report gambling winning? Anyone know how exactly this would be reported?

[slickpoppa]

[ QUOTE ]
I plan to pay taxes on the 75k that i've cashed out this year, but since i'm under 21 is it technically allowed to report gambling winning? Anyone know how exactly this would be reported?

[/ QUOTE ]

If you made 75K selling crack you would still have to report it. Gambling winnings are reported as "other income." You don't have to worry about the illegality of it because the 5th Amenmdment protects you from being prosecuted for paying taxes on illegal activities.

[Jeffage]

Not paying taxes on $75,000 is a very serious crime. Also, all income (including illegal income - which online poker really isn't, but anyway) is taxable. The IRS also doesn't communicate with other agencies so you could report bank robbery profits, and that's between you and the IRS.

If you're not paying quarterly taxes yet, you should be. See an accountant, they make it very easy and it's not expensive to get all set up.

Jeff

[THATWACOKID]

what % of income are we supposed to report?

what % can we get away with paying?

[slickpoppa]

[ QUOTE ]
what % of income are we supposed to report?

what % can we get away with paying?

[/ QUOTE ]

You report all of it. You can theoretically get away with paying none of it. But there isn't some magic number where the IRS says, "Well, you deliberately tried to defraud us, but you paid half of what you owed so well be nice and let you off the hook."

[Marlow]

This is probably a very stupid question, but here goes:

Does anyone write off the rake? I would consider this to be a form of overhead.

[Jeffage]

You can't do this.

Jeff

[Marlow]

Not suprising, but I had to ask.

[img]/images/graemlins/tongue.gif[/img]

[bobbyi]

[ QUOTE ]
so i have 20 buyin in neteller and about 35 in poker accounts. which is my BR( i like somwhere around 50-60 buyins )

[/ QUOTE ]
Is 20 buyins for you more than $10k total? If so, I would be somewhat cautious about keeping that much on Neteller if you are in the US. The federal government requires you to fill out forms to report $10k or more in "foreign accounts" and Neteller almost certainly qualifies (whether poker sites themselves count is debatable, but probably not). Of course, the chance of you getting in trouble for this is quite low, but techincally keeping more than $10k in neteller wihtout reporting it probably violates the law. There is more info here, although I don't know the people who run this site and do not really vouch for its content (just found it via web search):
http://www.onlinepokerfaq.com/guide/tax-fbar-90221.html

[Ulysses]

[ QUOTE ]

Does anyone write off the rake? I would consider this to be a form of overhead.

[/ QUOTE ]

You've already written it off, since you report your earnings AFTER the rake (expense) has been taken out.