Question about taxes....

Well let's assume you only put $30 a month into the bank(for AOL service), let's further assume you only cashout ~2k a month from poker winnings and do not buy nice things for yourself(or have any credit whatsoever) but only try to build a BR.

[Dave D]

[ QUOTE ]
Well let's assume you only put $30 a month into the bank(for AOL service), let's further assume you only cashout ~2k a month from poker winnings and do not buy nice things for yourself(or have any credit whatsoever) but only try to build a BR.

[/ QUOTE ]

Cashout how? to a bank account, or by check. I think someone else mentioned that as soon as you pass 17k a year it shows up on the gov't radar.

Cashout=move money onto neteller card and withdraw from ATMs around here. Never ever pay by check, always money orders.

[Dave D]

[ QUOTE ]
Cashout=move money onto neteller card and withdraw from ATMs around here. Never ever pay by check, always money orders.

[/ QUOTE ]

Doubt it then. But just keep in mind that whenever you try to do anything with it, big brother will find out.

[schwah]

lots of good info here

"..if you have a foreign bank account(s), and at any time during the year you have $10,000 in the account, you must report the account."
"The IRS hasn't pressed the point, but if they want to, they could classify all online casinos as financial institutions. There is no doubt, though, that Neteller, FirePay, and similar services are foreign bank accounts and must be reported (if you meet the $10,000 threshold)."
"The quickest and surest way that I know of to have your return audited by the IRS is to declare a foreign bank account on Schedule B and/or Form TD F 90-22.1"


What I am getting is best bet is to keep under 10,000 in firepay, and under 10,000 in multiple accounts otherwise, including on poker sites.

[AtticusFinch]

Move to Canada. No taxes on gambling.

Anyone gotten in trouble for breaking the rules in this area? How much do you need to make before you should start reporting it?

[AtticusFinch]

[ QUOTE ]
from what i understand you only have to report what you cash out. it goes in some column marked internet gambling ro something.

right now, as longa sthe moneyh is in your account, it's working capitol or something, not income.

[/ QUOTE ]

Not entirely true. You are allowed to count losses against earnings (to a limited degree, and in a complicated fashion which is beyond the scope of this thread), but once the calendar year ends, you're technically required to report your profits even if you haven't cashed out.

My best advice is to keep careful track of all of your play, wins and losses, and just hand your records over to a good gambler's accountant. There are guys out there who specialize in doing taxes for Poker players, and the $250 they'll charge you to do your return will be well worth it if you have even one big score.

[broiler]

Nobody has ever said that an online poker account is like an investment in stock. An online poker account is effectively cash that is located offshore. An online poker account has no relation to buying and holding shares in say Microsoft.